Live Chat
Serving independent insurance agents since 1954
Smart Homes and Insurance – What is it and how can it help?

Smart Homes and Insurance – What is it and how can it help?

What is a smart home?  Is it when you can ask your fridge how to calculate 1x + 2y=z?  No, not yet, anyway.  The definition of a smart home is where devices and technology are used to control lighting, security, HVAC, etc, via your smartphone device or computer.  By the end of 2016, there were more than 15 million smart homes in the United States. By 2021, media research group Kagan expects the number of American homes with smart technology to surpass 35 million.

Ok, so why are you mentioning this in an insurance newsletter?  Because smart home technology can be used to lower insurance costs and minimize the amount and types of claims homeowners experience.  Some of the most common smart home features that most of us are familiar with and probably don’t even consider as smart home tech are smoke detectors (many of which are integrated with monitored alarms systems or our thermostats), camera systems accessible via our mobile phones, and smart thermostats.

Some other devices that you might not be as familiar with are smart water sensors that will notify you of a leak when it first starts (and can actually even shut the water off); electrical fire precursor detectors – devices that can detect electrical problems before they cause a fire; heat sensors that can detect drastic changes in temperature in your home to notify you of a potential fire or lack of heat in winter.

With all this being said, I would encourage you to contact your carriers to determine what, if any, discounts they offer for smart home devices.  Also, some carriers provide basic devices to their policyholders.  Utilizing these devices can minimize damage your customers may incur and reduce the claim dollars the carrier may need to pay.

Posted by Tate Tooley, IT on Jul 5, 2022