With a smart thermostat, you can increase the heat in your home before you even get out of bed. Your smart speaker can play your favorite podcasts with voice commands. Smart light bulbs can be turned on or off from across the room.
But smart home devices are more than just convenience. Some of them can help keep your home safe, so you might also get a discount on your homeowners insurance.
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smart home device discounts
NerdWallet reached out to more than a dozen insurance companies and found that many are offering discounts to homeowners with smart home devices designed to protect against water damage, fire, and theft. . Our research found companies advertising discounts of up to 20% on homeowners insurance, depending on the device and your location.
Among the companies we looked at, we saw discounts on a variety of devices, including:
If you already own a smart home device, check with your carrier to see if you qualify for a discount.
These savings are in addition to the homeowners insurance discount the company offers when you install the device.
Please note that in some cases, you may need to share your device data with your insurance company to receive the discount.
Here's a look at how some major insurance companies handle discounts on smart home devices.
allstate
Policyholders in all states can save up to 5% by installing approved smart devices such as connected security cameras, water leak detectors, and door and window sensors. In some states, you can save $20 on an annual service plan from security camera manufacturer Canary.
Amica
Amica offers discounts on a wide range of smart home devices, including smart security devices, temperature monitoring systems, leak detectors, fire alarms, and electrical fault monitors. Amica also offers discount codes that you can use when purchasing devices from companies like Moen, Guardian, and Kangaroo.
Discounts vary depending on the device you have and your region. However, devices that are monitored online by a third party generally offer the most savings.
Chub
Chubb, which insures high-priced homes, offers discounts on water and gas leak detectors, temperature monitoring systems, permanent generators and automatic valves that shut off gas lines in the event of an earthquake.
Chubb will also cover up to $5,000 to install a water leak detection and control system and up to $2,500 to install a generator if you have water damage coverage.
cincinnati insurance
Cincinnati policyholders can save between 2% and 8% by installing automatic water shut-off devices, centrally monitored fire and burglar alarms, temperature sensors, and gas valves that automatically shut off in the event of an earthquake. is possible. The company partners with water sensor providers to offer discounts on the purchase of certain smart home devices.
farmers
Farmers save 5% to 20% on smart home devices that protect against water leaks, fire, and theft. Significant discounts are usually available for devices with professional monitoring.
Nationwide
Nationwide is offering a free smart home monitoring system to policyholders in select states. The exact discount amount will depend on the device and where you live, but the company will offer discounts to policyholders with smart home devices that help prevent theft, fire, and water leaks.
state farm
State Farm policyholders in most states can sign up for three years of free Ting service. Ting offers a plug-in that monitors your home for electrical problems that could cause a fire.
State Farm also partners with ADT in select states to offer free smart home security systems and discounted rates on professional monitoring. You can receive discounts on your homeowners insurance by signing up for the service and sharing your system usage data with State Farm.
Traveler
Travelers offers discounts on devices such as fire alarms, security systems, water sensors and circuit breakers. Savings vary by device and location.
USAA
With USAA's Connected Home program, you can get a discount when you install at least two Roost or Resideo smart home water leak detectors. To receive the discount, you must share app usage data with USAA.
Why insurance companies reward smart home devices
Insurance companies are offering discounts on smart home devices because this technology can catch problems early and prevent costly claims.
Let's say you have a smart water sensor next to your water heater, and that equipment is leaking water. The device can sound an alarm and send alerts to mobile phones, allowing users to take immediate action. (Some models also have an automatic water shutoff function.)
Without sensors, you could end up having to make an insurance claim, pay a hefty deductible, and find a contractor to clean up afterward. However, with sensors, your damages may be so limited that you may not need to file a claim at all.
Do you need to buy smart home devices?
The cost of smart home technology can add up quickly. Karen Collins, vice president of the Property Casualty Insurance Association of America, says if you want to invest in protective equipment but aren't sure which ones are worth the money, consider your home's unique risks.
For example, if your home has older plumbing, it may be worth purchasing a water sensor, Collins says. However, if you live in an area with a high crime rate, you may be better off spending money on a home security system.
Check with your insurance company to see if the device you're considering qualifies for a homeowners insurance discount. Depending on the discount and the price of the device, it could pay for itself within a few years.
Keep in mind that the benefits of smart home technology can go beyond insurance savings. Smart home devices can give you peace of mind by alerting you to small problems before they turn into big problems.