Smart homes are no longer a thing of the future. Smart technology and the internet are empowering homeowners to monitor their homes’ critical systems straight from almost any mobile device.

Besides convenience and peace of mind, smart homes offer elements of safety and security that can directly impact your homeowner’s insurance premium and how often you file a claim.

What you will learn:

 

What is a Smart Home?

An emerging trend in homes is streamlining all smart devices on one mobile application. Being able to control different features of your home with a mobile device gives you the ability of control. Before we get into specifics, it’s important to distinguish a smart home and connected home.

A connected home offers the simplest example technology in homes. It refers to the infrastructure installed that allows devices within the home to communicate via the internet. For example, using your iPhone to switch applications on your Smart TV through your Wi-Fi network.

A smart home builds on the infrastructure of a connected home. The term “smart home” is used to define a residence that has appliances, heating and cooling, lighting, security systems, entertainment systems, and more that are connected to the home network and can be controlled remotely or with a timer.

Devices Making Homes Smarter

While smart homes can improve your security, connectedness, and convenience at home, they can also make your home more energy efficient and can help reduce your energy bills. Think of how smart devices can make a world of a difference in your day to day life to make things easier, faster and more secure. They can provide the same value for homes.

Let’s look at the most popular smart devices that can improve life at home.

There are so many more devices being designed to improve your security and comfort such as:

  • Smart appliances
  • Garage door detectors
  • Video door bells
  • Smart door locks
  • Lighting timers

Installing smart devices can make all the difference in the world, especially when it comes to your luxury home insurance policy. Your smart home can impact two of the most important aspects of insurance: claims and premium.

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How Smart Homes Can Reduce Insurance Claims

Home is where we spend most of our time. It’s only natural that we try to create a safe living environment. As homeowners, our properties come with many risks that we need to plan for. From leaking pipes, potential fires and burglaries, to other unexpected incidents like carbon monoxide build up or the water heater blowing. There is so much to plan for, it can get overwhelming.

The benefits of incorporating smart devices at home goes beyond safety and convenience. Smart home devices offer real-time insights into the health of your home. Insurance claims can’t be prevented, but with the right preventative measures in place, they are avoidable.

That’s the value of smart homes, they offer us an edge over our own limitations. That edge can be something as simple as catching a water leak before your basement flooded, or it can be as sophisticated as alerting you when an intruder is on the premises. When smart home can’t prevent claims, they will help you achieve favorable claim outcomes.

Let’s say a pipe burst at home and water began collecting in your basement. Fortunately, you were proactive and installed a leak detection device, which alerted you, and you called the plumber. By the time he arrived, your basement had sustained at least $50k in damages, so you file a claim. By simply having the leak detection sensor installed, you have proof of damage being caused by spilling water. This makes the insurance claim process easier to run through, and more likely to be accepted the insurance carrier.

Do Smart Homes Reduce Premiums?

Investing in a smart home can also help you out with your homeowner’s insurance premium. From detecting fires to preventing break-ins, smart devices can save your family and your home from unforeseen accidents that can cause devastating losses if left undetected.

Another major benefit of installing preventative technology at home is eligibility for discounts on your home, condo, or renter’s insurance. Some insurance companies will indeed offer you a discount for installing safety devices that reduce the risk of an accident from happening.

Consult Your Advisor

The smart home is being integrated across America for comfort and security. If you plan to incorporate a smart system in your home or already have, consult your insurance advisor about which devices will help protect against your home’s unique liabilities.


Your adviser is also the best person to speak to about qualifying for premium discounts. Insurers are taking notice in how effective these tools can be and how they can tangibly reduce the chances for risks to the family and the property.

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