Can Your Smart Home Save Your Money on Homeowners Insurance?

Smart home devices provide more than just convenient assistance – they help us complete tasks more efficiently and secure our homes. And now, they may actually be able to save you money on your homeowner’s insurance.

Homeowners insurance protects or helps you in the event of an accident. Yet 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 could damage your home.

Of course, smart home accessories can turn devices on and off in your home, remind you of appointments, and clean your carpet when you don’t want to, but they can protect you. For example, if you have old pipes in your home, things like water leak sensors are useful, smart safety products can tell you if a door is broken or a window is broken, and smart thermostats can help detect fires or block air. These types of smoke protections are some of the things that homeowners insurance companies prefer.

Which Smart Home Products Can Save You Money?

Or your homepod Roomba is not going to get you an insurance discount. The most popular types of devices that help you save money include alarms and security systems (including cameras and doorbells), fire and smoke detectors, and electronic water or gas shut-off systems. Getting that Nest doorbell with Nest indoor / outdoor camera and Nest thermostat can save you more money than you paid for a smart home system over time. Remember, though, that some insurance companies only offer discounts for certain brands, so do your research before you buy.

Although not the most exciting, these safety devices will help improve your life and, most likely, your wallet. Imagine that you live in an old house and one of your water pipes starts leaking. You may have a water leak sensor that alerts your phone about leaks, lets you work faster, or the system may be advanced enough to turn off your water automatically. By looking at that scenario, you have saved money by not filing a claim, not hiring people to drain or repair the house, and many other possibilities.

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

Lorex Smart Home Security Center with two 1080P camera product images.

You can’t save a lot of money and as mentioned, not all devices apply. On average, you can expect to save 105 to 15% of your annual fee on homeowners insurance with the right products. Some of the types of savings to look for include a reduction in your monthly rate, lower cost of smart devices, or sometimes a reduction in professional monitoring services. Insurance companies can partner with device manufacturers and this can sometimes save you even more.

Insurers like Amica, Farmers, Hippo, and Lemonade will usually offer some type of discount. Some companies will reduce your monthly fees or other payments if you have a smart home device. Ask your insurer or any potential company if they offer any discounts for a particular smart device.

So, do you need to 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 you look at the annual fee savings for the average homeowner paying the average homeowner’s fee (1,650), you’re saving about $ 200 per year. Smart home devices will cost a lot of money, and there are some additional backend cloud or monitoring fees. First, look at your lifestyle and buy the most relevant devices you need. For example, if you live in a new home, you may not need a water leak sensor like the old Victorian home down the street.

If you don’t get a discount now with your homeowner’s insurance, call your insurer to see if they’re offering a discount for the smart home products you have and ask which brands and devices are eligible. Who knows, the next Alexa-enabled video doorbell you buy could be worth $ 200 in your wallet.