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How Smart Home Gear Can Help Lower Your Premiums

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By Allison Murray Allison Murray Tech News Reporter Southern Illinois University Allison reports on all things tech. She's a news junky that keeps her eye on the latest trends. Allison is a writer working out of Chicago, IL, with her only coworker: her cat Norbert. lifewire's editorial guidelines Updated on February 25, 2021 03:24PM EST Fact checked by Rich Scherr Fact checked by Rich Scherr University of Maryland Baltimore County Rich Scherr is a seasoned technology and financial journalist who spent nearly two decades as the editor of Potomac and Bay Area Tech Wire. lifewire's fact checking process Tweet Share Email Tweet Share Email Smart & Connected Life Mobile Phones Internet & Security Computers & Tablets Smart Life Home Theater & Entertainment Software & Apps Social Media Streaming Gaming

Key Takeaways

Smart home technology and home insurance go hand in hand in keeping homeowners safe.Particular smart home technology can prevent insurance claims by detecting water leaks or electrical arcs before they become severe issues. Experts say smart home tech will begin to help homeowners save money on their home insurance. dowell / Getty Images Smart home technology can turn on our lights or play music for us, but experts say there are additional benefits to help lower homeowner’s insurance rates, too. With tech like security cameras, automatic locks, interactive doorbells, and more, homeowners are making safety a priority in their homes. The future of home insurance will prioritize these types of smart home products to increase a home’s overall safety. "As the insurance industry starts to look at [smart home technology] more and more, I think it will become a part of every house," Dave Wechsler, vice president of growth initiatives at home insurance company Hippo, told Lifewire over the phone.

How Smart Home Tech Keeps You Safe

Although most people think of a safe home as being safe from theft or break-ins, there’s more insurance-related safety that smart home technology can help us with, especially in preventing insurance claims from happening in the first place. As the insurance industry starts to look at [smart home technology] more and more, I think it will become a part of every house. "A huge part of insurance is a kitchen fire or a washing machine breaking and spilling water everywhere," Wechsler said. "In these instances, the insurance company loses money and the customer loses money, and things they care about." The smart home tech that can help save on your insurance isn’t necessarily your smart doorbell or Alexa home assistant. Wechsler thinks there are many commercially available smart products that will become more widely available to homeowners, and can aid them in potential insurance losses. PixelsEffect / Getty Images "We are seeing products now that can hear a water leak, tell you how far away it is, and what direction it’s coming in," he said. "These are not far-fetched products." He sees other ways that smart home tech can help homeowners with their insurance in products that monitor electrical arcing to catch an electrical fire before it happens, stove sensors that stop a stove fire from spreading, and even wireless presence detection embedded in a home’s Wi-Fi.

The Future of Home Insurance

Wechsler said smart home tech could change the old ways of homeowner’s insurance to help people get better discounts and rates on their insurance policies by dramatically reducing the risk of loss. "We will see a lot of insurance companies begin to embrace smart home tech in the next few years," he said. "Insurance companies will see that they can price you like a safer consumer and change your rates because you use smart home technology—sort of like how the auto industry offers safe driver discounts." Wechsler said some older and more established insurance companies wouldn’t be as open to coupling smart home tech with homeowner’s insurance as Hippo is. "[Some home insurance companies] are really interested in [smart home technology], but a lot of them have other objectives right now and see this as five years out, but I think they are missing the boat," he said. Hippo partners with various smart home companies, such as ADT, SimpliSafe, Kangaroo, and Notion, to give its customers cheaper insurance rates if they integrate this tech into their home. Hippo’s approach to combining smart home tech with home insurance is ultimately the future of insurance, says Wechsler. "I’m very confident that in the next year or two, consumers will start asking their insurance companies why they aren’t giving them tools to make their home smarter and safer," he said. "Consumers will really see and take advantage of this new level of safety." Was this page helpful? Thanks for letting us know! Get the Latest Tech News Delivered Every Day Subscribe Tell us why! Other Not enough details Hard to understand Submit More from Lifewire Your Car's Driving Assistance Tech Isn't Meant to Be Used Alone—Here's Why The Best Options for iPhone Screen Repair What's the Point of Apple's iPad Smart Home Docking Accessory? The 6 Best Smart Water Sensors of 2022 Should You Buy a Dash Cam? The 9 Best Smart Home Security Systems of 2022 Expert Tested: The 10 Best Smart Home Products in 2022 6 Things You Need to Set up Your Smart Home Verizon 5G: Looking Forward Expert Tested: The 7 Best Smart Doorbell Cameras in 2022 What Is the Ring Doorbell and How Does It Work? Introduction to the Connected Home 5 Ways AI Can Make Your Home Happy Why You Should Never Buy iPhone Insurance: 6 Reasons Geofencing: What It Is and How It Works How to Set Your Smart Home to Vacation Mode Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Cookies Settings Accept All Cookies