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How Smart Technology Impacts Home Insurance Costs

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Home appliances have evolved from giving utmost convenience and comfort to a house’s dwellers to become more durable and energy-efficient amid hours and hours of abuse. Many household item manufacturers have converted to lithium-ion batteries or inverter-backed motors to lessen age-old problems like shorting circuits or premature damage. But, perhaps what defines this decade’s technological advancement for appliances is smart technology.

Many are yet to get over their reluctance to foregoing traditional button and knob switches for an integrated smart control hub. It all started with the idea of having an extension of one’s brain, sort of a one-stop for all things it navigates like search engines, stock market, weather, the calendar, the dictionary, social networks, and many more. But, it is undeniable that we are now in the advent of smart technology that makes seamless man’s control over his surroundings including his home.

Still, those who have tried smart mechanisms partially or entirely for their homes could attest to its indispensable role in their lives. Turning off the lights in the comfort of one’s bed just before falling into slumber, adjusting the bed or shower’s cooling or heating, putting blinds up or down, activating the CCTV’s view mode in the TV whenever a guest rings the doorbell, and cooking a decent dish with a simple button click are just some tasks that smart appliances conveniently assumed for its users. With a pandemic we don’t see a definite end to yet, all the more we would want to make our home a safe and comfortable place.

It isn’t an unknown fact that going smart requires a big investment upfront. But, the benefits we get from the upgrade are almost infinite and, unbeknownst to many, these include the average insurance cost reduction for a homeowner. Here are the most common smart system installations that home insurance companies are more than willing to reduce your premiums for:

Fire and Smoke Detectors

The less susceptible you made your house from fire, especially during wildfire season, the less likely you are to pay for remarkable insurance premiums. While you could opt for heat-triggered sprinkler systems and keep fire extinguishers handy and regularly inspected, installing smart smoke and fire detectors could help keep you and your family further away from potential dangers. These detectors automatically informing you and the fire response groups in your area once it detects a fire in your property.

automatic fire detector

Security and Anti-Theft Systems

Theives have gotten more skilled and daring in breaking into houses and merely installing several CCTV cameras, worse, make-believe ones, in and outside the house can now only do so much to deter the treacherous behavior of these outsiders. This urges more homeowners to fortify their property’s walls and entry points with upgraded security cameras that set an alarm off when it detects an intruder and digital door locks that provide limited-access passcodes to visitors or maintenance personnel. In the event of an intrusion, regardless if you’re in or away from home, the security system will automatically call the police.


If you live in an area with multiple seasons, having a thermostat that automatically adjusts according to outdoor weather or according to your preferred settings would be a dream come true. Smart thermostats are just as good as they could trigger an alarm if a room gets too hot. Such a temperature-balancing feature is another means to reduce energy costs.

Water and Gas Leak Detectors

The deterioration of houses mostly could be traced back to some water problem. It’s only understandable how leak detectors have proliferated in the market to automatically pause water flow, therefore, preventing risks of flooding and damaged furniture and fixtures. Likewise, some detectors would shut off the gas and would notify the owner and, therefore, preventing carbon monoxide poisoning or fires.

How do insurance companies reward you for going smart?

Aside from charging you lower premiums, insurance companies have other mechanisms to reward you for making your home less prone to security breaches and calamities with the help of smart systems. Here are some common ways:

  • Installation discounts. Some companies offer affordable deals for installing smart appliances in your house. Some would be even more generous to fully cover installation costs.
  • Equipment purchase discounts. There are manufacturers of smart equipment that, through their partnership with insurance companies, could offer their products at a discount to shared clients.
  • Some insurance companies incentivize those who opt for smart devices whose controls are integrated into one central hub and those who deliberately reduce the usage of these devices during timeframes that are historically identified as its peak hours.

As mentioned, smart technology offers infinite advantages. Nevertheless, a prospecting homeowner should consider factors such as how much they think they’ll be able to utilize the devices. They could shell out so much on the purchase and installation that it neutralizes the discounts insurance companies give, but the main consideration should be how long these devices will unfailingly serve them.

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