Smart Home Technology Can Reduce The Potential For Home DisastersPosted by admin in Uncategorized, on March 31, 2017
The idea of putting “smart” gadgets in your home can freak many people out, and not surprisingly, many people would rather not. But, what if doing this could offer you discounted premiums for home insurance? The advantage of putting new smart-home gadgets in your home is essentially to save money on your heating and electricity breaks as well as guard your home against disasters such as fires, broken pipes, and basement flooding, but now insurance companies are starting to offer homeowners insurance breaks.
State Farm started this by partnering up with ADT and Lowe’s in 2013, and what happened was that homeowners could get discounts on home-monitoring equipment from any of those brands; whether it was thermostats or smoke detectors or any other device. This lead to a 10 to 15 percent decrease on their home or renter’s insurance. As of right now, State Farm is still the driving force for the ever-growing smart device market discounts, but it is expected that this will become mainstream by 2019.
According to collected data, security systems and smart home-monitoring devices will be among the most common devices in the next five years. Homeowners are always concerned with saving money on their heating and cooling costs and also keeping their homes safe. This is exactly what the insurance companies want to see in homes, because it will mean that there is a less chance of a disaster occurring with this kind of technology constantly monitoring your property even when you aren’t there.
A representative with Pure Insurance stated that if a customer installed a temperature-monitoring system in their house, that they will definitely receive a discount on their insurance. A lot of insurance customers are now becoming more and more interested in this type of technology, and it is to their benefit. Although it used to unattainable for many middle-class homeowners, it is now becoming more mainstream so the average resident can purchase these devices.
There is good news for homeowners though, the price of exterior security cameras and kits are also dropping in price, which is something that insurance companies also love to see in homes. Smart home devices are actually quite beneficial to homeowners. For example, a smart thermostat can help prevent your pipes from freezing by adjusting the temperature even while you aren’t home. Another example is a smart-leak detector which will shut off your water if it detects any type of water. It is quite understandable that insurance companies like to see this type of technology in homes, as it helps them prevent and minimize damage to their properties. This also applies to the homeowner themselves. Who wouldn’t want to save money on not only their utility bills, but also on their insurance premiums as well? Having this type of technology in your home not only will save you some money, but could also make you some extra money too if you plan on selling your home in the foreseeable future.
Compared to other homes in your neighborhood who don’t maintain these devices, it will only cause the value of your home to increase, and it will also give you a distinguishing edge from other neighbors.
It would be ideal that every homeowner wants this technology, but the truth it, not everybody wants to have a “smart home”. A representative with the Pure Insurance firm also states that this could be the new storm doors for hurricane season of insurance discounts. Just as many residents receive a discount for having storm doors during hurricane season, many people will begin to install smart devices on their property in the coming years. This isn’t going to be a quick process though; it will probably be limited to the U.S and the areas that are most prone to freezing pipes in the winter and flooding in the summer months.
Many homeowners fear that their smart devices could be hacked into, and they also fear that insurance companies may use the data they collect against them. This isn’t true, as the smart-home devices will be used as an incentive rather than a disincentive. This process is still in the very early stages and is still quite new, so it isn’t clear yet as to what could possibly happen with this technology in the future.