If you're a homeowner, you've likely wondered about discounts and other strategies that could help lower the cost of your homeowners insurance premiums. Fortunately, an easy way to reduce your policy's rates is by using smart home technology in your existing residence. You can install devices like smart thermostats, home security systems, locks, and water leak sensors. In return for making these changes to your home, many insurance companies will reward you with smart home insurance discounts.
Luckily, a local independent insurance agent can help you find and apply all the insurance discounts for smart homes that you qualify for. They know exactly which home insurance companies offer discounts for smart home devices, so they can help you save as much as possible on your policy's premiums. But first, here's a closer look at smart home technology and how it can help you score homeowners insurance discounts.
Key Takeaways - Smart Home Technology and Insurance Discounts
- Many home insurance companies offer discounts for installing smart devices such as locks, security systems, or water leak sensors.
- Smart devices can help reduce the risk of damage to your home and the chances of having to file insurance claims.
- Smart home tech discounts can earn you savings ranging from 2% to 20% depending on your insurer and the devices installed.
- Some home insurance companies have lists of specific qualifying smart devices that are eligible for these discounts.
- Working with an independent insurance agent is strongly recommended, as they can help you find the best home insurance discounts for installing smart devices and tailor coverage to your needs.
What Is Smart Home Technology?
Smart home technology includes devices such as automated security systems, water leak detectors, flood sensors, smart locks, and thermostats. These devices are designed to make homes safer and more efficient. As a homeowner, you can help protect your home and finances by installing smart devices that can alert you to issues that could result in costly damage. Smart technology can help you become aware of a problem before it leads to expensive repairs to your home.
Why Do Insurers Offer Discounts for Smart Home Technology?
Insurance companies offer discounts for smart home technology because these devices can help reduce several costly risks. Smart home technology can help homeowners mitigate risks related to the following:
- Fire and smoke
- Carbon monoxide
- Burglary
- Vandalism
- Water damage
- Flooding
- Dangerous temperature changes
Implementing smart home technology can result in fewer, less costly claims, which, in turn, saves the insurance company money. As a result, they can pass these savings along to the policyholder through home insurance discounts.
Types of Smart Devices That Qualify for Discounts
Some of the most common eligible smart devices that can qualify for home insurance discounts include:
- Smart security systems
- Smoke and carbon monoxide detectors
- Water leak sensors
- Flood sensors
- Video doorbells
- Smart locks
These devices are all designed to reduce the risk of damage or destruction to the home and to alert the homeowner to take action before an issue becomes more serious. If you install any of these smart devices in your home, be sure to let your independent insurance agent and home insurance company know right away. You might be eligible to start receiving a sizeable discount on your premiums.
Typical Home Insurance Savings and Discount Ranges for Smart Devices
Home insurance discounts for smart devices and technology typically range from 2% to 20% on your policy's premium, with the most common discounts between 5% and 15%. However, these discounts can be higher depending on the type of devices installed and how they're integrated into the home.
For example, comprehensive home security systems can help you earn the greatest possible discounts of up to 15% or 20%. These home systems often include many components, such as cameras, motion detectors, contact sensors, and alarm panels. You can get a smart home security system from companies like Vivint or SimpliSafe.
Examples of Real-World Insurance Company Savings for Using Smart Home Tech
Many major home insurance companies offer competitive discounts for implementing smart home technology. Some real-world examples include the following:
- Allstate: This carrier offers a discount of up to 5% for installing a Canary Pro smart home security system.
- Nationwide: This carrier offers a discount of up to 10% for installing free smart water leak detectors it provides to customers.
- Hippo: This carrier offers free smart home systems from SimpliSafe or Ring and discounts of up to 10% for using a self-monitored plan and up to 13% for using a professionally-monitored plan.
An independent insurance agent can help recommend the best homeowners insurance companies for houses with smart security systems. They can also advise you on how to qualify for insurance discounts with smart thermostats.
The Increased Savings Benefits of Bundling Your Coverage
Installing smart home devices can certainly help you earn homeowners insurance discounts, but you can also qualify for savings by bundling your coverage. For example, many insurers offer significant savings, often up to 20% or even as much as 40%, if you buy both home insurance and another type of policy, such as auto insurance or business insurance, from them. An independent insurance agent can help you find the best home insurance company for bundling discounts.
Steps to Qualify for a Smart Home Technology Discount
Most insurance providers require homeowners to install specifically approved smart devices and submit a monitoring certificate or proof of purchase to claim their discount. Be sure to check with your home insurance company for a list of approved smart devices before attempting to earn a discount. Your independent insurance agent can also help you determine which devices qualify for savings and can assist you in preparing any required documents for the discount.
Smart Home Tech Savings Limitations and Other Considerations
Keep in mind that the available smart home technology home insurance discounts can vary widely by insurance company and geographical location. The same home insurance company's discounts can even vary regionally.
For example, if you live in a coastal area, installing a smart device might not reduce your home's risk of flooding because of the increased risk of hurricanes. As such, you might not be offered a discount on your home insurance.
Further, not all smart devices qualify for the discounts offered by each insurance company. An independent insurance agent can help you determine which smart home tech discounts you qualify for based on your location and insurance company.
Beyond Premiums: Device Cost Incentives
Some insurers partner with device manufacturers for reduced purchase prices or installation costs, which can make these upgrades much more affordable for policyholders. Certain insurance companies, such as Hippo and Nationwide, even offer free smart home devices or services for customers to use. After installing the device or implementing the service, policyholders can then earn a smart home tech homeowners insurance discount.
Here's How an Independent Insurance Agent Can Help You Get Smart Technology Home Insurance Discounts
When you're looking for smart technology home insurance discounts, no one's better equipped to help than a local independent insurance agent. These agents have access to all the best home insurance companies near you, so they're free to shop and compare coverage and quotes for you. Your agent can help you find a home insurance policy that offers discounts for installing smart devices and technology. And down the road, your agent can even help you file home insurance claims when necessary.
FAQs About Smart Home Insurance Discounts
Which smart home devices qualify for insurance discounts?
Most insurers offer discounts for smart security systems, water leak sensors, smoke and carbon monoxide detectors, and smart locks, but available discounts vary by provider and location. An independent insurance agent can help you find smart tech home insurance discounts near you.
How much can I save on my homeowners insurance by installing smart home devices?
Savings typically range from 2% to 20% on premiums, but the exact discounts offered depend on the insurer, devices installed, and local regulations.
Do I need to use professional installation, or will self-installed devices qualify?
Some insurance companies may require professional installation, while others accept certified self-installed devices. Your independent insurance agent can help you find your insurance company's guidelines for these discounts.
Will my insurer require proof or ongoing monitoring to receive a discount?
Yes, most insurance companies require documentation or certificates showing devices are installed and functional, and some may ask for ongoing proof of device operation or monitoring to maintain the discount.
Are there limitations on the types of claims or coverage when smart devices are installed?
It depends on your policy. While smart devices lower risk and may prevent certain losses, coverage terms and claims eligibility remain subject to your policy's details. Not all home damage will be covered, even with smart devices installed.
Sources
https://securedinsurancegrp.com/how-smart-home-technology-can-save-you-money-on-insurance/
https://www.forward.bank/about/the-hangout/insurance/smart-devices-for-homeowner/
https://gritinsurance.com/blog/the-connection-between-smart-home-technology-and-insurance-discounts
https://www.valuepenguin.com/2019/03/smart-home-insurance-worth-it
https://www.niacoverage.com/how-smart-tech-can-protect-your-home-reduce-your-premium/