Surprising ways that smart home tech can save you money on homeowners insurance

Smart home devices offer convenience, peace of mind, and energy savings by letting you automate everyday tasks and control your gadgets through an app or voice command. But did you know connected tech can also help you get homeowners insurance discounts? 

According to a 2021 survey by the insurance company Nationwide, two-thirds of homeowners have at least one smart home device, but many don’t realize that the same gadget can help lower their homeowners insurance costs. Take smart security systems, for instance. They can let you know if a window is smashed or a door is forced open. But 40% of homeowners didn’t know that installing one could save them money on their home insurance, according to a 2020 survey from Policygenius, an online insurance marketplace. 

At Asurion, we not only fix and protect ​​your tech—we teach you how to navigate our connected world. Here’s our guide on how to save on homeowners insurance with smart devices. 

How can smart home tech save you money on homeowners insurance? 

You may have read about how smart home devices can help you protect the environment and lower your electric bill. Even using a virtual assistant, like Alexa™ from Amazon™, can decrease your monthly energy spending. But smart home gadgets can also bring down the average price of homeowners insurance by preventing damage from water, fire, theft, and other unexpected events. And once a problem starts, smart home products can lessen the damage by alerting you and the authorities. 

Say a pipe bursts in your home when you’re out of town. If you have a smart water leak sensor, it'll send an alert to your phone, giving you the chance to act immediately by calling someone, like a neighbor, to turn your water off right away. The result: Your smart home product can help stop a massive leak, saving you thousands of dollars on repairs. It can also help you avoid filing a huge claim to your homeowners insurance company—and save you from a big increase on your homeowners insurance premiums. 

Some insurance providers give discounts to homeowners with connected tech, and others partner with manufacturers to offer reduced prices on smart home security devices, installation, and monitoring fees. Make sure to confirm what smart home insurance discounts your insurance policy offers.

How much money can smart home tech save you on homeowners insurance? 

How much money you save depends on various factors, like the devices in your home, your insurance carrier, and where you live. But industry experts estimate that the average homeowner will see a 10% to 15% cut in premiums, or about $100 a year. Insurance carriers don’t always offer discounts for all smart home products, so make sure to research your options before buying anything. 

Smart home devices to consider to lower your homeowners insurance costs 

The smart technology you own can affect how much your homeowners insurance costs. You don’t need to go out and buy every smart home device. Pick and choose what’s right for your home and budget.

Here are some suggestions from our experts—and when you’re ready, check out our guide to setting up your own smart home: 

Smart water leak detectors 

Water damage is one of the most common—and costly—kinds of homeowners insurance claims. In 2021, water damage accounted for nearly a quarter of all homeowners insurance losses, according to the Insurance Information Institute, a New York–based industry organization that offers data-driven insights on the insurance industry. Yet a Nationwide study found that only 7% of homeowners use smart sensors that monitor their homes for leaks and water flow. Only 27% knew about smart water leak detectors in the first place. 

That’s unfortunate because you can easily prevent soggy floors and a dripping roof with smart water leak sensors, which alert you the moment they detect moisture. Most devices turn on only when water touches them. Damage from leaky water heaters, old toilet valves, and stubborn washing machines can be minimal or extensive, and these devices are easy to use and affordable. You can even install an automatic water shutoff, which can save your home from flooding. 

To learn more about monitoring your house, check out our guide to the best smart gadgets to keep an eye on your home while you’re away. 

Smart video doorbell 

Smart home video doorbells can scare away thieves by monitoring who’s at your door and sending you an alert when someone approaches or rings the bell. Certain models let you talk with visitors through an app on your phone. And built-in motion sensors record short clips when someone approaches your home and let you watch your doorstep live. 

Not sure which video doorbell to get or how to set it up? Check out our step-by-step guide on how to DIY a smart home wireless video doorbell installation. 

Smart security cameras 

Keep an eye on your home from anywhere with smart security cameras. Once you place them inside and outside your home, they stream live video to your phone and alert you when there’s an issue. Most brands, like SimpliSafe®, Vivint®, Ring®, Google Nest®, and ADT®, offer motion sensors, day and night coverage via HD video, and night vision. Some security cameras come with cloud video storage (for a fee) that gives you access to live or archived video and makes sure that footage is safe from fire, theft, or damage. Other devices offer local video storage on an SD card. 

Want to learn more? Check out our guide to everything you need to know about smart home security systems. 

Smart window sensors

Another way to protect your property—and lower your homeowners insurance policy—is to install window sensors, which tell you when a window opens and closes. For an extra layer of protection, add smart glass break sensors, which go off when they detect the sound of shattering glass.

Smart locks 

These devices let you lock or unlock your door with a keypad, a fingerprint scanner, or an app. Most come with a built-in alarm and will lock someone out if they try the wrong access code too many times. Quality smart locks are very safe, and for the average burglar, they’re a lot harder to crack than traditional locks. Plus, they negate the need for physical keys, which are easy to lose and can wind up in the wrong hands. 

No technology is perfect, of course. So to keep your smart locks safe, make sure you know how to secure your home Wi-Fi network, update your router, and use strong passwords. 

Smart smoke and carbon monoxide detectors 

Smoke and carbon monoxide detectors have long been staples in our homes, but smart versions of these devices do what manual ones can’t: instantly alert your phone when there’s a problem so you can deal with the danger immediately. Smart smoke detectors and smart carbon monoxide alarms can also let friends and family members know there’s an issue. Plus, you can mute the alarm right from your phone. Doing so prevents you from turning off your traditional detector, then forgetting about it, and leaving your home unprotected. 

Electrical hazard detector 

Home electrical fires cause an estimated 51,000 blazes, around 500 deaths, more than 1,400 injuries, and $1.3 billion in property damage each year, according to the Electrical Safety Foundation, a nonprofit focused on electrical safety at home and in the workplace. So it’s no wonder that installing a smart electrical hazard detector can save you on your homeowners insurance policy.

While a smart smoke detector tells you once a fire has begun, a smart electrical hazard detector can help prevent one from starting in the first place. Just plug its smart sensor into an outlet and this device will monitor your home’s electrical wiring for early warning signs that could lead to fires. If it detects an electrical fault or a possible fire hazard, it alerts you (and a safety team) via its smartphone app. 

Smart garage door opener controllers 

Whether you’re hurrying to get your kids to the bus stop or rushing to catch a flight, it's easy to forget to close the garage door. An open garage gives burglars easy access to your home, but a smart garage door opener controller can help. Once attached to your existing garage door opener, it monitors the status of your garage door, letting you open and close it with an app or voice commands. Keep in mind, a smart controller requires a strong Wi-Fi connection where your garage-door opener lives, and it must be compatible with your garage door opener (check the manufacturer’s website to know for sure). 

Smart plugs 

These cool home gadgets let you turn almost any wired appliance with an on-off switch into an automated device that you can control with your phone or by voice command. Smart plugs can also keep your home safer from fire hazards. So if you leave without turning off your space heater, clothes iron, or curling iron, you can turn it off remotely with your phone—as long as the device is plugged into a smart plug. Want to lower your homeowners insurance rates? These devices are an easy way to do so. 

Smart lighting 

Smart lights are handy for lots of reasons, but when it comes to safety—and property and casualty insurance—these gadgets can help secure your home when you're out of town. With smart lights, you can set a schedule to make it appear like someone’s home even when you’re not. For example, program your smart lights to automatically turn on in the morning and off at night. Some smart bulbs even come with a vacation mode option for when you're out of town. 

Smart thermostats 

You may already know that a smart thermostat is a convenient way to control the temperature of your home and help you save on your energy and utility bills. But did you know it can also help you save on your homeowners policy? The reason: This device can keep your home temperature just right on cold winter days to help prevent pipes from freezing. Many smart thermostats even connect to your smoke alarms and shut off the air if they detect smoke or CO2. 

With so many models on the market, which is the best smart thermostat? And how exactly does one work? Check out our guide on what to know before switching to a smart thermostat, plus six surprising ways a smart thermostat can transform your home.