Are Smarter Homes Safer?
We’ve reached peak smart home technology from voice-activated light switches to garage doors, thermostats, and more that can be activated remotely from an app.
But smart home technology isn’t just about convenience — it can also protect your home from costly damage. In some cases, it could even lower your home insurance premiums. Insurers increasingly reward homeowners who install devices that reduce risk, like water leak detectors, security systems and smoke alarms.
If you’re looking to make your home safer and save money, here are five devices you might consider adding.
Why Smart Devices Can Get You Insurance Discounts
Insurance companies calculate premiums based on risk. When technology helps detect threats early or prevent damage, insurers may offer discounts because the likelihood of a claim decreases.
Common types of discounts include savings for:
- Burglar alarms and monitored security systems
- Smart smoke or CO detectors
- Water leak sensors with automatic shutoff
- Smart locks or video surveillance
- Integrated home monitoring systems
- Smart thermostats
Not every insurer offers the same discounts, so it’s always smart to check with your provider or compare quotes.
1. Smart Water Leak Detectors
Water damage is one of the most common (and most expensive) home insurance claims. About 1 out of every 60 homes makes a claim for water or freezing damage each year, and the average cost of a water damage claim is nearly $14,000. Water damage is the second most common home insurance claim, behind wind and hail.[1]
The most important way to keep costs down with water damage is to catch any leaks early. A smart water leak detector can alert your phone the moment moisture is detected in vulnerable areas like under sinks, behind appliances, or by the water heater.
More advanced systems can automatically shut off the water supply if a major leak is detected.
How they help you save:
- Reduce the risk of major water damage claims
- Some insurers offer discounts for systems with automatic shut-off
- Prevent mold growth and long-term structural issues
2. Smart Smoke & Carbon Monoxide Detectors
Traditional alarms only notify you if you’re home. The blaring sounds are intended to wake you up and get you to safety. What about when you’re not at home when a fire starts?
While better for your physical safety, when you're not home when a fire breaks out, it gets extra time to spread before the fire department is notified. And with fires, every second counts, with longer response times having the strongest correlation with which fires become extreme fires and which homes become a total loss.[2]
Smart smoke and CO detectors send instant alerts to your phone and often integrate with other devices (like cameras or HVAC systems) for added safety. This means even if you’re at work or on vacation when a wire short-circuits or an electrical battery combusts, you can take immediate action.
How they help you save:
- Lower the risk of severe fire damage
- Many insurers offer discounts for monitored or interconnected alarm systems
- Early detection can reduce both damage and claim size
4. Smart Thermostats
Smart thermostats aren’t only for energy savings. They can also automatically maintain consistent temperatures, allow you to set minimum heat thresholds, or allow remote temperature control. This can ensure pipes stay warm enough, especially under sinks and in basements, whether you're home or far away from the big freeze hits.
The average amount for a claim for frozen pipes is $27,000.[4] To avoid these expensive payouts, many insurers do offer discounts for having smart thermostats.
How they help you save:
- Prevent burst pipes
- Reduce strain on HVAC systems
- Some insurers offer energy-efficiency or home protection discounts
5. Smart Locks & Entry Sensors
Smart locks allow remote locking/unlocking and customized access codes. They can alert you when someone enters your home. Paired with door/window sensors, they help prevent unauthorized entry and reduce theft risk. You can even get smart garage door openers that can alert you when the door is left open or opened by someone while you’re out.
Much like the smart home security systems mentioned above, these can be another way to lower your chance of being a victim to home or garage theft and thus potentially earn you a discount.
How they help you save:
- Lower burglary risk
- Improve home security without expensive hardware
- May qualify for security-device discounts
Wrapping Up
Smart home devices are not only convenient, but in the event of a water leak under your cabinet or a fire starting or robber entering while you're away from home...they can save you some big bucks.
Even if nothing bad happens to your home (which obviously is the preferred option) they can offer peace of mind and additional discounts on your home insurance costs.