Why Do Insurance Companies Want You To Have a Smart Home?

    Smart homes offer great convenience and savings for consumers, and those benefits are why smart tech is implemented in 35 million homes today. But did you know that companies that provide house insurance love smart homes, too? Insurance providers have a vested interest in your home having smart features. Below we will detail why this is the case.

    Insurance Companies Offer Incentives For Smart Tech

    Some house insurance companies offer discounts to homeowners who use smart technology. Others will subsidize what those devices cost or pay for you to install them. From the insurance company’s perspective, smart tech in the home reduces damage and decreases the number of claims filed. They also lower your risk profile by finding problems and making the home operate more efficiently.

    Water monitors, alarm systems, and smoke detectors are some of the most common smart tech that insurance companies want you to buy. You also can benefit from purchasing sensors that monitor weather conditions, as well as smart devices that check if the stovetop was left on.

    Integrating Technology

    Smart technology isn’t just good for covering the cost when trouble happens. Some insurance providers help you prevent home damage from happening at all. Some companies provide sensors to homeowners that find water leaks before you notice them (usually after severe damage is done). Others offer free smoke detectors. These are simple smart products that warn of imminent danger or damage and provide more coverage and peace of mind.

    Streamlines Claim Submission

    If a burglar sets off your home security system and registered devices no longer show up on your home network, the insurance company could start the claim process before you know the items are gone.

    Reduce Risk With Early Warning

    There are smart devices for almost anything these days, even mold! Smart air devices can prevent major problems by sensing growing mold before it becomes an expensive disaster. Here are some more smart devices that can reduce risk:

    • Freeze detection: These smart devices can help you know if your water pipes could freeze. Once you know, you can take preventative action.
    • Appliance and electrical monitoring: Control plugs, appliances and lighting from your smartphone. This can prevent a short circuit or malfunctioning device from causing a fire.
    • Security and vandalism protection: Smart doorbells, cameras, and locks can prevent intruders and vandalism.
    • Water usage: Water usage sensors and smart water valves can tell you if you have a leak. You can take immediate action so the problem doesn’t get worse.
    • Gas usage: A natural gas shutoff valve can be managed easily from a smart device. This is a great thing to have if a gas stove was accidentally left on and you’re out of town.

    Reduce Number of Claims

    Smart technology can alert you to emergencies and accidents immediately. So, insurance companies know smart tech can lower the number of home insurance claims. This could lead to a lower insurance premium for you.


    Homeowners insurance companies can reduce their risk by having property owners use smart technology. Insurance underwriters utilize predictive analysis to make decisions on insurance premiums based on several factors.

    Underwriters have more information with smart devices to make highly accurate predictions of possible losses. Also, because smart tech helps to prevent losses and involves the homeowner in protecting the home, insurance companies are all-in on these helpful tools.

    Hopefully, you understand how smart devices can affect your homeowners insurance. Getting lower rates and better protection for your most significant investment are excellent reasons to incorporate smart technology in your home!