Smart Home Devices That Save You Money On Home Insurance

There is no shortage of reasons to invest in smart home technology — from the convenience to the added layer of safety and efficiency, it adds to your house. 

And while being able to change your thermostat or lock your front door from Bora Bora is reason enough to invest in these products, there’s an additional perk that merits consideration: Smart home tech can lower your homeowner’s insurance rates.

Particular high-tech gadgets — like smart thermostats, wireless security systems, and smart door locks — strengthen your home’s defense against expensive damage or theft. And for that reason, some homeowners insurance providers offer special smart home discounts if you add one of these devices to your home. 

The concept of smart homes is still relatively new, and products are constantly evolving, so not every insurance company has standardized incentive programs. But among the handful of companies that do, these four smart home gadgets will likely provide the most significant savings on homeowners insurance premiums.

1. Smart smoke detectors

Modern smoke detectors come with all the bells and whistles: a dual-sensor for detecting both flaming and smoldering fires, a carbon monoxide detector, and a hush button in the event it detects phantom smoke. 

But it’s the central monitoring that leads to the most generous discounts. Smart smoke detectors alert third-party monitoring companies, who then call your fire department in the event of a fire. 

2. Water-leak detectors

Water damage is the second most common reason for homeowners insurance claims, so it’s no wonder why water-leak detectors often result in significant rate reductions. 

Along with detecting leaking pipes and other gradual but expensive home maintenance issues, water leak sensors often come equipped with temperature and humidity sensors, which can go a long way in preventing expensive mold damage. 

Some of these devices also come with automatic shutoff valves if there’s a leak. If that’s the case, you’ll likely earn even more significant discounts on your home insurance premiums. 

3. Wireless security cameras

Modern wireless security cameras do far more than alert you of break-ins and porch pirates — they’re also built to alert you in theft, water damage, or other potential hazards while you’re not home. 

Like fire alarm discounts, insurance companies generally offer the heftiest discounts if a third party monitors your security system. Like Ring, new school doorbell cameras are easy to install and effective, but they don’t feature robust third-party monitoring like an ADT or SimpliSafe system.

Tech-friendly insurers like USAA and Hippo often top best home insurance companies lists for this very reason. USAA offers discounted home security systems and premium discounts thanks to its partnership with ADT. And Hippo offers free smart home monitoring kits to qualifying customers and a rate discount for those who opt into the added protection.  

4. Smart thermostats

Smart thermostats lead to a more energy-efficient home and help you save on utility costs, but they’re also a great way to trim your home insurance premiums. With a smart thermostat, you can control the temperature in your home to prevent your pipes from freezing. The rest of your smart home ecosystem can integrate these gadgets to shut off your heating system after carbon monoxide leaks or fan-based systems after smoke detection to prevent it from spreading further.

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