Home insurance companies are taking notice of smart home technology (i.e. smart thermostats, flow sensors, etc.) by offering savings. What devices should you consider for your home and what savings could you see with your home insurance coverage?
Technology is helping you make your home more energy-efficient, safe and save money on certain expenses (i.e. your electric, water and gas bill). How much of a technology investment should you consider with your home? This question is best answered by the amount of savings you could potentially derive from your home insurance.
The Growth Of Smart Home Technology
Smart home technology includes a wide array of products and monitoring services designed for the home. These technologies include:
- Lighting control systems
- Security and home monitoring
- Smart speakers (i.e. Alexa, Google Home, Facebook Portal, etc.)
- Smart home kitchen appliances
Research indicates a compound annual growth rate of 12 percent from a 2018 market value of $76.6 billion for these devices to $151.4 billion by the year 2024. Greater Wi-Fi connectivity and higher adoption rates of technology throughout the country has aided in the market growth of smart home technology.
What Adoption Of Smart Home Technology Means For Home Insurance Rates
The adoption of these devices has become a boon for homeowners. The installation costs for these devices average nearly $875 (with a low-to-high range of $65 to $3,000). The benefits of automating your home translates in a cost savings of up to 30 percent on your home operating costs. This savings includes discounts that many home insurance companies are providing to homeowners as an incentive to install such devices. This makes sense, as smart home technology and risk mitigation go hand-in-hand.
Your home — properly wired with a home security and access notification system — can provide you with a real-time image of people coming and going. It also provides messaging that can be accessed by different peripheral devices — such as your laptop, tablet and smartphone. This enables you to monitor your home for intruders and potential theft on a 24/7 basis, without the need of an expensive monitoring service which may be located in another city.
The savings to your home insurance coverage varies depending on the company you are with and the incentives it has in place. Asking your Scriber Insurance agent about a plan to install any of the various smart home technologies available may help you not only offset the cost of installation but also save on your home insurance premiums.
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