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Smart Home Technology: How it Affects Your Property Insurance



Technology is transforming our homes, and property insurance is taking notice. By 2025, 77.3% of US homes will have at least one smart device, according to Statista. But did you know these devices can also help you save money on your insurance?

Unlocking Insurance Discounts

Many insurers offer discounts between 5% and 20% for specific smart home devices that help reduce risks. Here are some common examples:

  • Security systems: These systems deter burglary and provide early warnings, potentially reducing fire and theft claims by 25%, according to the Insurance Information Institute.
  • Smoke detectors: These devices provide instant alerts to potential fires, leading to faster intervention and potentially lower fire damage claims.
  • Water leak sensors: These sensors detect leaks, reducing the risk of costly water damage claims. Studies suggest these systems can save insurers $5.2 billion, annually.

Choosing the Right Tech

Remember that not all smart devices are created equal. When selecting them, consider your needs and choose devices that address your specific concerns (e.g., security, water leaks, energy efficiency). Once you choose the type of device(s) you wish to install, check with your insurance company, as they might have specific device requirements for discounts.

Of course, opt for reputable brands with proven track records for security and functionality. Many of these smart devices can save lives. Now is not the time to go bargain-hunting for off-name brands.

Beyond Discounts

The future of insurance might involve personalized premiums based on your smart home data (e.g., responsible water usage and occupancy patterns). While this could offer further savings, data privacy remains a concern. Be sure to choose insurers with transparent data practices.

While smart home technology can enhance your comfort and security, it can also help you save on insurance. Explore the options, choose wisely, and enjoy the peace of mind of a smarter, safer, and more affordable home.

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