How to Save Money on Insurance with Smart Home Automation


How to Save Money on Insurance with Smart Home Automation

Today, smart home technology is everywhere. From lighting to thermostats to smart egg checkers, we literally have the future at our fingertips. But, studies show that while 86% of American consumers are aware of smart homes, less than 27% actually want them. Why? Most think switching to smartphone or computer controlled devices and lights is just unnecessary or costs too much for what you get. Despite that, most smart home technology (not the egg checker) will save you money.

For those with hefty insurance policies, you can use smart home automation to improve your home security to reduce your annual insurance payment. How? Keep reading to find out.

Smart Security Systems – Most home insurance carriers will offer you a lower premium if you have a security system, and many offer additional discounts if it’s smart. For the best results, your system should alert the police, but you can also consider smart systems. With wireless cameras, you can reduce costs for a security system, turning them on with motion detectors, and automatically sending screenshots to your phone, so you can respond to the risk in real time. Other solutions, like wireless sensors to alert you to broken glass, and smart locks and garage door openers can help you to reduce everyday risks, like keys left near homes, and thieves using RFID to manipulate simple garage door openers. For example, State Farm has worked with Lowes and ADT for over 4 years, offering an up to 10% discount for homeowners who install electronics that qualify for the Home Alert Discount. These include smart notifiers, smart cameras, and an alarm system that detects entry via door and window sensors or motion sensors and an audible alarm. They’re also not the only company, as more and more insurance companies are adopting smart home policies as the tech becomes more widespread.

Reduce the Risk of Damage – While thieves and burglary are a large concern for many insurance companies, you can also reduce risks by using leak detectors and smart carbon monoxide detectors to send you early alerts to your phone. This can help you to respond more quickly, allowing you to reduce risks and minimize damage. Some products, like the Utilitech smart leak detector can actually shut off the water if they detect a leak, which can save you thousands in water damage. And even simple temperature detectors can help you to prevent pipes from freezing while keeping your home warmer and more comfortable. In fact, some insurance companies even offer discounts for smart thermostat systems, which allow you to turn the heat off while you’re gone without coming home to a cold house, in turn reducing the risk of fire or electrical damage.

Automation Improves Security – Automated lights and doors reduce your risk of a break in because you can control your lights even when out of house to make it seem like someone is home.

Smart home automation is rapidly being adopted in the United States, and for good reason. While automation often initially seems gimicky, it can drastically reduce your bills, and your insurance premium. While not every insurance company offers discounts, if you’re considering going smart, you should discuss your options with your provider to find out what they offer discounts for, and how to qualify. And with discounts ranging as high as 10% for smart home security systems alone, you could save between $60 and $300+ per year in the average home. Considering that smart home security systems start off under $200, a similar system could pay itself off very quickly if your insurance company offers a discount.

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