Potential Insurance Benefits of Smart Home Devices

Smart home devices, such as security cameras and leak detectors, can help keep your home and family safe. They can also, depending upon your insurer, policy and location, lower your insurance premiums.

Why Insurers Care About Smart Devices

Some insurance companies reduce premiums for certain smart home devices for a very practical reason: not only can these devices save homeowners time, stress and money, but they can save insurers money as well. Early detection or warning can prevent small issues from escalating into major claims.

Smart Devices that May Save You Money on Insurance

Security Systems and Monitoring

A centrally monitored security system may convince would-be burglars to strike elsewhere. These systems can include burglar alarms, smart cameras with night vision, smart door locks, door and window sensors, motion and glass breakage detectors, and central station fire monitoring. Statistics show that 72% of all break-ins occur when homeowners are away, and homes without security systems stand a 300% greater chance of being robbed. Almost 60% of all burglars are deterred by the presence of an alarm system.

Water Leak Detection / Automatic Shut-Off

Damage from a leaking or burst pipe can be catastrophic, especially if no one is home and the damage goes undiscovered for hours or days. Such incidents rank among the most common homeowners’ insurance claims. According to the Insurance Information Institute, the average loss is $14,000, and many damaged items may be irreplaceable.

Leak sensors, smart shutoff valves, and flow monitors can provide early warnings of leaks or burst pipes and significantly reduce or prevent damage and loss.

Smoke, Fire & Sprinkler Systems

Every year, more than 350,000 homes catch on fire, and over 1,400 people die in those fires. On average, a home in America catches on fire every 88 seconds.

Even without insurance savings, adding smoke detectors, monitored fire alarms, temperature sensors, and sprinkler systems makes sense. Not only can those devices save lives, but systems that alert authorities can also mean a faster response and less damage.

Smart Home Automation that Prevents Damage

Automation devices can enhance safety as well as add convenience. Smart speakers that play music in every room won’t make a home safer, but integrated systems that control HVAC and electrical systems can do both. Even “dumb” devices can become “smart” with inexpensive plugs. Some systems can even detect unusually high electricity usage and possible short circuits to provide early warning of potential issues. These devices also provide extra peace of mind when homeowners are away.

Beyond Discounts: Added Value for Property Owners

Even if your policy doesn’t offer discounts for home safety or security equipment, adding these devices delivers several benefits:

• Peace of mind
• Early warnings of potential problems
• Added safety and security for you and your family

Consider water sensors, for example. Detecting a water heater leak before your basement floods can save a lot of time, money, and stress—even if your insurance company doesn’t offer a price break.

How to Maximize Insurance Savings from Smart Devices

Discounts aren’t guaranteed, but risk reduction is always valuable. Before doing anything, ask your insurance partner all the questions you can think of about devices that qualify. Find out what proof or documentation is needed, as well as any other requirements, such as professional vs. DIY installation. Also, find out whether changing insurers or policies to earn a discount (or larger discount) makes sense.

A knowledgeable insurance partner can recommend upgrades that will make your property more attractive to insurance companies. They’ll also know which insurers offer the best discounts. (If you already have smart devices that you haven’t told your insurer about, let them know.) Bottom line: The right insurance expert can help you navigate the complex insurance market to find the best coverage and rate for your needs.

Get Expert Guidance on Smart Devices and Insurance Premiums

Stu Cohen and his team at City Building Owners Insurance have been educating homeowners about risk management since 1976. If you’re thinking about installing smart systems in your home, our risk management specialists can tell you about available discounts and the potential effects on your premiums.

Call us at 877-576-5200 or request a complimentary, no-obligation policy review to ensure you have the right coverage for your specific situation.