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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Maskot/Getty Images June 04, 2021 Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. A smart home is one where appliances and devices are wirelessly connected to give the homeowner access and control from anywhere. are increasingly interested in the growing use of smart technology in homes. Smart home technology protects homes by making them more secure and potentially reducing the possibility of damage caused by perils like fires or theft. Smart home systems also provide data to insurance companies, helping them determine risks and . System sensors can detect smoke, water damage, leaks and other potential problems, alerting the homeowner through their phone. Smart home discounts are the insurance company’s way of incentivizing occupants to invest in smart home technology. Types of smart home insurance discounts
While insurance premium discounts are common ways insurance companies incentivize customers to take specific actions, there are also other ways providers reward people who use smart home systems. Some insurers offer discounts on the system itself and may even reduce or waive the installation fee entirely. Which smart home devices qualify
While each insurance company has unique discounts, these are some of the providers might offer incentives for installing in your home: Smart thermostats Security systems that include window and door sensors, smart locks or video doorbells (most providers will not offer a discount for individual components like locks or sensors) Amazon Echo Dot Automatic interior sprinkler systems Gas and water shutoff sensors Smart fire alarm systems or smoke detectors How much will I save
The savings you will receive for installing smart home technology in your home varies by the insurance company. Most insurers offer discounts between 5%-20% on your homeowners insurance premium, depending on the smart device and its ability to reduce your likelihood of filing a claim. Some insurance companies may offer more than one smart home discount, which allows you to stack the savings together. But the savings don’t end there. Many larger insurance companies offer free or reduced costs for systems, activation and installation fees, providing even more savings. Liberty Mutual has partnered with to provide $0 activation and installation fees plus $100 off select smart home devices. partners with Travelers to offer new home insurance customers a free Echo Dot in qualifying states. Insurance company discounts for smart devices
As more people become interested in smart home technology, insurance companies are taking note and partnering with companies offering devices. Here are a few partnerships with home insurance companies that could help you save on smart home technology: : Partnered with , Allstate offers a 5% discount on homeowners insurance and $20 off the cost for an annual membership with Canary HD security cameras. : AmFam partners with . Frontpoint offers a control panel, security cameras, locks and sensors for homeowners to install themselves, saving on installation fees. Monitoring plans start at $10 per month with Frontpoint, and American Family customers can purchase the basic Frontpoint system for $99.95 with a 36-month price guarantee on monitoring services and save up to 5% on their home insurance premiums. : The Smart Water Security System learns your home’s water usage and can automatically shut off the water if a failure occurs. Homeowners can also control their water shutoff remotely. Amica homeowners discounts vary by state, but the normally $800 system is only $350 for Amica policyholders. : partners with SimpliSafe, Notion and Kangaroo to offer free systems to its policyholders in select states. Self-monitoring systems include a 10% homeowners discount, while professionally monitored systems net up to 13% savings. : Homeowners in Arizona, California, Ohio and Texas can get a if insured with State Farm. There is no discount on the home policy, but State Farm pays for the hardwire and three years of service. Ting monitors for electrical hazards and power quality and offers State Farm policyholders $1,000 in hazard repair credits to fix hazards using a licensed electrician. : Partnered with , USAA customers can save up to 15% on self-installed systems and get 10% off monthly monitoring, plus a discount of up to 10% on homeowners insurance premiums. Pros and cons of smart home discounts
Smart home technology is more affordable than ever, especially with some of the discounts, incentives and rebates offered by homeowners insurance companies. However, with convenience and technology comes risk. Here are the pros and cons of smart home technology. Pros
Added security: Smart home devices can deter criminals from breaking into your home and will automatically alert you and the authorities if it happens. Convenience: With automated systems easily controlled through a smartphone, homeowners can change their thermostat, turn on lights or be alerted to potential hazards at any time. Energy savings: Smart home systems allow pre-programmed settings to change automatically throughout the day and can monitor energy and water usage, making the homeowner more aware and more easily able to change their habits to reduce energy usage. Utility demand response programs can also reduce energy usage during peak times. Universal apps: Wi-fi enabled smart home hubs can usually be controlled from one app to turn on the lights, unlock the door, set the alarm, change the thermostat and more. Cons
Cost: While some home insurance companies offer incentives and rebates for equipment, homeowners usually have to pay for monitoring and the remaining cost of smart home systems. Homeowners also must have a strong internet connection for most systems to work properly. Cybersecurity: With smart home systems attached to the internet, cybercrime is a possibility. Hackers may be able to access your smart home devices, which could give them access to private information. Keep passwords complex and update the apps used for the devices as needed. Learning curve: While some smart home systems are easy to install and learn, some are more challenging and may be harder for people who are not tech-savvy. Outages: If the internet or power goes out, some systems have battery backups while others do not, which can limit or eliminate functionality until it is restored. Outages can especially be a problem if you live in an area prone to strong storms. Are smart home discounts worth it
The best way to know if it is worth installing a smart home device or system is to determine how much savings you will receive on your homeowners insurance with the discount. Then, determine how much the system will cost with the incentives and rebates included. For systems requiring monitoring, like burglar and fire alarms, consider the monthly or annual cost of monitoring services. Insurance companies will likely continue to improve the discounts associated with smart devices as the technology improves even more and they become more common in homes across the country Worth the investment
American Family: If you do not already have a smart home system, the discounted basic system and 36-month price lock on monitoring from FrontPoint may be worth it. Amica: The savings on the water usage monitoring system may be worth it if you need one anyway. Hippo: The self-monitored system is free with a 10% homeowners insurance discount, and the discount is even higher at 13% with professional monitoring. Since Hippo focuses on smart homes, they already offer various options for security system providers, and its customers will likely see even more discounts from this provider in the future. State Farm: A free Ting for three years with a $1,000 repair credit is hard to beat, even without a homeowners discount. Probably not worth the investment
Allstate: A $20 annual membership discount for Canary HD camera and 5% off homeowners insurance means this discount may not be worth the money unless you do not have a camera and need one. USAA: Considering the cost of an ADT system, even with discounted monitoring and savings on your home policy, you may be able to get a smart security system for cheaper. When considering the discount savings on homeowners insurance, weigh the pros and cons of installing a smart home device to know if it is worth the investment. Smart home systems can protect your home and reduce damage with an early alert but come with the risk of cyber-hacking and may have a higher out-of-pocket cost, negating the savings on your homeowners insurance policy. SHARE: Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products. Related Articles