Smart Homes Could Mean Reduced Homeowner’s Insurance
Smart home devices are designed to better protect homes from damage and loss. For example, smart sensors can alert a homeowner in real-time via their smartphone if a water leak is detected or pipes are at risk of bursting.
This lets homeowners take action more proactively, and can therefore, result in fewer insurance claims submitted. Because smart devices lower a home’s risk for damage, some insurance providers have started to reward homeowners who implement smart thermostats, security systems, fire alarms and sensors into their houses with reduced premiums or deductibles.
Learn If You Qualify for Discounts
Though the specific requirements vary, many big-name insurance providers have started to experiment with smart home discounts, including State Farm, American Family, Liberty Mutual, USAA and most recently Travelers Insurance.
In researching your provider’s policy, ask the following questions:
- What types of smart devices qualify?
- Does the device have to be provided by a specific manufactuer?
- Is the discount exclusive to specific geographic regions?
- Are other insurances (e.g. auto) required to qualify?
- How do I enroll in the program?
You’ll also want to understand what data the provider will want to access to ensure that you are comfortable with the level of information shared. For example, while you may be okay with the insurance provider getting reports on the battery or Internet status of your system, you may not want them to know usage or behavior-based information tracked by your smart device. Understand what you’ll have to report, how frequently, and how information will be used prior to enrolling.
If your smart home is not currently elgible, keep in mind that the trend is likely to continue with participating insurers expanding their offerings and new entrants joining the game. Therefore, it’s wise to check back again later to see if requirements evolved.
Aside from homeowner’s insurance discounts, what other benefits does a smart home provide your family? Share in the comments below.
Image Source: via flickr