How Using Smart Technology at Home Can Lower Your Insurance Bills
Insurance costs rise due to inflation, just like the prices of everything else, and people seek to reduce these costs through savings and discount programs that insurance companies often offer. At the same time, homeowners’ enthusiasm for smart technology is growing every year. Since smart technology can prevent costly events that lead to insurance claims, it makes sense that insurance companies would offer discounts on specific smart technology in the home. A study last year found that a third of homeowners switched homeowners or renters insurance companies to get smart home discounts , and another study by Nationwide found that two-thirds of American households already have smart technology in their homes.
Leaks and break-ins are two of the most common insurance claims.
Smart technology can do a lot for home occupants in terms of convenience, but if done right, it can also significantly reduce risk. Twenty percent of insurance claims are due to water damage, and it’s not all down to Mother Nature: Many homeowners experience interior plumbing leaks, and smart technology can do a lot to prevent significant damage. Whether you use a water leak detector with a shut-off valve, such as a Moen Flo, or actual floor sensors that detect water, early warning of a problem can prevent a major disaster. Intelligent security systems can help prevent hacks just like traditional security systems, but have two additional benefits. First, you get alerts sooner because instead of waiting for your neighbor to hear your alarm, you’ll receive alerts on your phone. Smart security systems are also equipped with a variety of sensors that prevent your family members from creating vulnerabilities such as open windows and doors. And while smart technology can’t prevent events like wind and hail, it can alert you to a problem in advance so you can protect your home in time.
Smart technology may bring small savings on insurance costs, but it may be worth it.
Most insurance companies offer small discounts ranging from 5 to 13% on the use of a security system or smart device with which it is associated. Allstate offers a 5% discount if you use their Canary home monitoring. Hippo offers a 10-13% discount if you invest in Simplisafe , Kangaroo or Notion smart security systems. Other companies offer discounts on the devices themselves. Amica is offering 20% off Moen Flo and other leak detection devices. One of the best deals may be from State Farm, which provides subscribers with a Ting smart plug and three years of monitoring, as well as a discount on the insurance itself. The device specifically monitors your electrical system, identifying the causes of fires, including faulty wires. Ting’s subscription itself includes $1,000 of coverage. Since all of this comes at no additional cost to the State Farm subscriber, it’s a good deal.
Your current insurer may offer a discount on devices you already have, such as leak monitors, energy monitors, security devices and fire alarms. The first step should be to contact your current agent to find out if you qualify and what programs are available. If you’re not happy with what they’re offering, it’s time to shop around. These discount programs and partnerships will only grow in the future as insurance agencies realize how smart technology can insure against claims.