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Can Smart Home Technology Save You Money on Homeowners Insurance?

n today’s world, technology has taken over just about every aspect of our lives. However, when it comes to smart home technology, it is still in its infancy when we look at the potential it has to offer to one’s home, safety, and wallet.

We are connected more than ever to our devices, but what implications does this have relating to saving you money on your homeowners insurance? Well, in short, insurance services will love that you are being proactive in reducing the risks to your home by installing smart home technology, and will often reward you for it.

Insurance companies are starting to take notice of smart home technology and are adding discounts for those who are proactive in mitigating the risks to their property.
What is Smart Home Technology?

Smart-home technology and the internet of things allows people to monitor and protect their homes remotely, which is usually connected to a device like a cell-phone, tablet, and desktop. It allows people to interact with their home remotely and seamlessly for comfort, safety, and convenience. 

This can include:

  • Window and door sensors
  • Lighting control
  • Thermostat and heating
  • Water leak detection
  • And many more

The “real-time” data is one of the most important aspects of smart home technology because when something does happen to your home such as a water leak, time is of the essence. For example, if your kitchen sink decides to spray out water when you are at work, the water leak detection sensor will pick up the danger right away and notify you that second.

This data helps mitigate the potential in having to pay thousands of dollars to restore the water damage in your home because you can spot the danger right away and get someone to fix it as soon as possible, rather than eight hours later when you return home from work. The difference of a half an hour and eight hours relating to water damage can be immense. You don’t want to end up like this lady after an 8 hour water leak.

Other examples of smart home technology in use:

  • Window and Door Sensors – The main function for this technology is to make sure all your doors and windows are securely locked. It can be easy to forget that you left a window open after a nice weekend day, which can be a major target for thieves looking to burglarize your home.  This technology can also notify you if someone opened the widow or remotely through your phone at all times of the day/night.


  • Smart Home Thermostats – This technology can help you save energy, thus lowering your electric bill. It allows you to be more comfortable and controls a certain threshold if the temperature goes below or above a certain level you desire.


  • Water and Flood Sensor – As mentioned earlier, this will notify you of major spills and disasters that can ruin your floors and other parts of your home.

How You Can Receive Discounts from Your Homeowners Insurance?

While insurance companies have been late to the party when it comes to acknowledging smart home technology in the industry, we are going to see this change very soon as the masses start to integrate these installations into their homes.

The reasons why people will save money on their homeowners insurance premiums are that smart home tools help prevent burglaries, they minimize the risks of loss of life, prevents major home disasters, and keep homes and properties safe. Added on, it can also help save money on energy bills, and can be convenient to not have to constantly change the lighting of the house.

If something disastrous does happen to your home, such as a large water leak that you were unable to fix in time, the water detection sensor will provide proof that your house was indeed compromised by your sink spilling water. This will in turn, expedite the home insurance claim allowing you to get your money back from the claim quicker to pay for the damage. There is a lot of insurance fraud out there, and having this smart home technology will speed up the claims process.

All these reasons are major factors that affect home insurance rates. Smart-home technology is getting cheaper to install and can save you money on your monthly insurance premium cost. All you need to do is notify your home insurance company of the precautions and actions taken by installing smart home technology to your property, and negotiate with them on a lower premium cost. 



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