How Using Smart Tech at Home Can Lower Your Insurance Bills

Insurance costs are rising due to inflation just like the price of everything else, and people look to reduce those costs through savings programs and discounts that insurance companies often offer. At the same time, homeowner enthusiasm for smart tech is rising every year. Since smart tech can work to prevent the kind of costly events that result in insurance claims, it makes sense that there’s an emerging trend of insurance companies offering discounts for specific smart tech in the house. A study done last year found that a third of homeowners would switch homeowners or renters insurance companies to get discounts for smart home discounts, and another done by Nationwide showed two thirds of American households already have smart tech in their home.

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

Smart tech can do a lot for the resident of the house in terms of convenience, but when when done right, they can also dramatically reduce risk. Twenty percent of insurance claims are for water damage, and that’s not all attributable to Mother Nature—plenty of homeowners experience internal leaks from plumbing, and smart tech can do a lot to prevent extensive damage. Whether you use a water leak monitor with a shutoff valve like the Moen Flo, or actual sensors on the floor that detect water, an early alert to a problem can prevent a major disaster. Smart security systems can help to prevent break-ins just like traditional security systems, but have two additional benefits. First, you get earlier alerts, since instead of waiting on a neighbor to hear your alarm, you’ll get alerts to your phone. Smart security systems also come with a lot of sensors to prevent your own family members from creating vulnerabilities, like open windows and doors.  And while smart tech can’t prevent events like wind and hail, it can alert you to a problem early so you can work to protect your home in time.

Smart tech can net small savings on insurance costs, but may still be worth it

Most insurance companies provide small discounts from 5-13% to use a security system or smart device they’re associated with. Allstate offers a 5% discount if you use their Canary home monitoring. Hippo offers 10-13% off if you invest in Simplisafe, Kangaroo or Notion smart security systems. Other companies offer the discount on the devices themselves. Amica offers 20% off a Moen Flo and other leak-detection devices. One of the best offerings may be from State Farm, who gives subscribers a Ting smart plug and three years of monitoring, plus a discount on the insurance itself. The device specifically monitors your electrical system, looking for causes of fire including faulty wires. Ting’s subscription includes $1000 of coverage in itself. Since this all comes at no additional cost to the State Farm subscriber, it’s a good deal.

Your current insurer may offer a discount for devices you already have, like leak monitors, energy monitors, security devices and fire alarms. The first step should be contacting your current agent to find out if you qualify or what programs exist.  If you’re not happy with what they offer, it’s time to shop around. These discount programs and partnerships are going to only grow in the future as insurance agencies recognize how smart tech can hedge against claims.

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