Can your smart home save you money on home insurance?

Smart home devices provide more than just convenient assistance – they also help us complete tasks more efficiently and protect our homes. And now, they can actually save money on your homeowner’s insurance.

Home insurance protects or helps you if an incident occurs. However, the best days are when nothing goes wrong, and life is easy for everyone. Smart home devices can be your first line of defense against things that can do damage to your home.

Of course, smart home accessories can turn devices in your home on and off, remind you of appointments, and clean your rug when you don’t want to, but they can also protect you. For example, accessories like water leak sensors are useful if your home has old pipes, smart security products can let you know if a door is kicked in or a window is broken, and smart thermostats can help turn off the air if it detects fire or smoke. . These types of safeguards are some of the things that home insurance companies love.

What smart home products can save you money?

Your HomePod or Roomba will not give you an insurance discount. The most popular types of devices that help you save money include alarm and security systems (including cameras and doorbells), fire and smoke detectors, and electronic water or gas shutoff systems. Getting the Nest Doorbell that pairs with the Nest Indoor/Outdoor cameras and the Nest Thermostat can save you more money than you paid for the smart home system over time. Keep in mind, though, that some insurers only offer discounts for certain brands, so do your research before you buy.

While not the most exciting, these security devices will help improve your life and possibly your wallet. Imagine you live in an old house and one of your water pipes starts to leak. You can have a water leak sensor that alerts your phone to the leak, allowing you to take action quickly, or the system can be advanced enough to automatically turn off the water. Looking at this scenario, you’ve saved money by not having to file a claim, not hiring people to drain the water or fix the room, and a host of other possibilities.

How much can you save on insurance with smart home devices?

Lorex Smart Home Security Center with Two Cameras 1080P Product Image.

You will not be able to save a large amount of money and as noted, not all devices are applicable. On average, you can save 105-15% of your annual home insurance rate with the right products. Some types of savings to look for include a reduction in your monthly fee, a reduction in the cost of smart devices, or sometimes a decrease in professional monitoring services. Insurers can partner with device manufacturers and this can sometimes save even more.

Insurers like Amica, Farmers, Hippo and Lemonade often offer some sort of discount. Some companies will lower your monthly fee or other payments if you have compatible smart home devices. Ask your insurer or any potential company if they offer any discounts for a specific smart device.

So, should you buy a ton of smart home devices to save money? The short answer is no, at least not if the ultimate goal is to save money. When looking at the annual fee savings for an average household paying the average homeowner fee ($1,650), you save about $200 a year. Smart home devices will cost a lot of money upfront and some have additional cloud or backend monitoring fees. First, look at your life situation and buy the devices that most apply to your needs. For example, if you live in a newer house, you may not need a water leak sensor like that old Victorian house down the street.

If you’re not getting a discount right now with your homeowners insurance, call your insurer and see if they offer discounts for the smart home products you own and ask which brands and devices qualify. Who knows, the next Alexa-enabled video doorbell you buy could be worth $200 in your wallet.

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