How using smart technology at home can lower your insurance costs

Just like the price of everything else, insurance costs rise due to inflation and people look to reduce these costs through savings schemes and discounts that insurance companies often offer. At the same time, homeowners’ enthusiasm for smart technology is increasing year by year. Since smart technology can prevent costly events that result in insurance claims, the emerging trend of insurance companies offering discounts for specific smart technology in homes makes sense. A study conducted last year found that one in three homeowners would switch homeowners or renters insurance companies to get smart home discounts , while another study conducted nationwide showed that two-thirds of U.S. households already have The home is equipped with smart technology.

Leaks and break-ins are two of the most common insurance claims

Smart technologies can bring a lot of convenience to residents, but if done right, they can also significantly reduce risk. Twenty percent of insurance claims are for water damage, and it’s not all Mother Nature’s fault—many homeowners experience internal leaks in their pipes, and smart technology can go a long way in preventing widespread damage . Whether you use a water leak monitor with a shutoff valve, like the Moen Flo, or a sensor in the floor that actually detects water, early warning of a problem can prevent a major disaster. Smart security systems can help prevent break-ins just like traditional security systems, but with two additional benefits. First, you can receive alerts earlier because instead of waiting for neighbors to hear the alarm, you receive the alert on your phone. Smart security systems are also equipped with many sensors to prevent your own family members from causing breaches, such as opening doors and windows. While smart technology can't prevent events like wind and hail, it can alert you to problems early so you can protect your home in time.

Smart technology can save you a small amount on insurance costs, but it might still be worth it

Most insurance companies offer a small discount of 5-13% for the use of security systems or smart devices associated with them. Allstate offers a 5% discount if you use Canary home monitoring. Hippo offers a 10-13% discount if you invest in Simplisafe , Kangaroo or Notion smart security systems. Other companies offer discounts on the device itself. Amica offers 20% off Moen Flo and other leak detection equipment. One of the best offerings may come from State Farm, which gives subscribers a Ting smart plug and three years of monitoring, plus a discount on the insurance itself. This device specializes in monitoring your electrical system, looking for causes of fires, including faulty electrical wiring. Ting's subscription itself includes $1,000 in insurance. Since State Farm users don't have to pay any extra fees, it's a good deal.

Your current insurance company may offer discounts on equipment you already have, such as leak monitors, energy monitors, security equipment and fire alarms. The first step should be to contact your current agent to find out if you qualify or what programs exist. If you’re not satisfied with the products they offer, it’s time to shop around. These discount programs and partnerships will only grow in the future as insurance agencies realize how smart technology can hedge claims.