Like the prices of everything else, insurance costs are rising due to inflation, and people are looking to reduce those costs through savings programs and discounts often offered by insurance companies. At the same time, homeowners' enthusiasm for smart technology is increasing year by year. Smart technology works to prevent costly incidents that can lead to insurance claims, so it's no wonder we're seeing an emerging trend of insurance companies offering discounts for certain smart technologies in the home. A study conducted last year found that one-third of homeowners would switch homeowners or renters insurance providers to receive smart home discounts, and another study conducted by Nationwide Surveys show that two-thirds of American households already have smart technology installed in their homes.
Water leaks and intrusion are two of the most common insurance claims
Smart technology can do a lot in terms of convenience for home occupants, but if done correctly, it can also dramatically reduce risk. 20% of insurance claims are related to water damage, but not all of them are Mother Nature's fault. Many homeowners experience internal leaks from their pipes, and smart technology can go a long way in preventing extensive damage. Whether you use a leak monitor with a shut-off valve like the Moen Flo or an actual sensor on the floor that detects water, early warning of problems can prevent major disasters. Smart security systems help prevent intrusions just like traditional security systems, but they have two additional benefits. First, instead of waiting for your neighbors to hear the alarm, you'll receive an alert on your phone, so you'll receive it sooner. Smart security systems also have a number of sensors to prevent your family from creating vulnerabilities, such as windows and doors being open. And while smart technology can't prevent events like wind or hail, it can give you early warning of problems so you can work to protect your home in time.
Smart technology can save you a little on your premiums, but it could still be worth it
Most insurance companies offer a small discount of 5-13% for the use of associated security systems and smart devices. Allstate offers a 5% discount when you use Canary Home Monitoring. Hippo offers 10-13% off when you invest in a Simplisafe, Kangaroo, or Notion smart security system. Other companies offer discounts on the device itself. Amica is offering 20% off Moen Flo and other leak detection devices. One of the best offerings may be from State Farm. The company provides subscribers with a Ting smart plug and his three years of monitoring, as well as discounts on the insurance itself. This device specifically monitors electrical systems and looks for causes of fires, such as faulty wiring. Ting's subscription includes $1000 of coverage on its own. All of this is available to State Farm subscribers at no additional cost, making it a great value.
Your current insurance company may offer discounts on equipment you already own, such as water leak monitoring equipment, energy monitoring equipment, security equipment, and fire alarms. The first step is to contact your current agent to see if you qualify or what programs exist. If you are not satisfied with what they offer, try shopping around. These discount programs and partnerships will continue to grow as insurance agents realize how smart technology can help avoid claims.