Can installing the latest home technology reduce your home insurance premiums?

There are so many gadgets flooding the market to make running your home easier and more comfortable. But this smart home technology may have another advantage – saving you money on your home insurance premiums.

You can control your home’s lights and curtains from an app on your phone no matter where you are in the world, to make it look like someone is there. You can view real-time cameras set up around your house to spot if there are any unwanted intruders – or to just check on what your cat is up to.

Common sense suggests homes with these smart features installed are at lower risk of theft or damage than a home that’s not protected by this technology. And as insurance is all about risk, that means potentially lower prices for your insurance premiums.

It is not just the energy saving benefits from controlling your heating remotely, or the home automation systems that will open your bedroom blinds automatically, open the window to let in some air and at the same time reduce your heating to save wasting energy. Being able to control the lights in your home along with security cameras that let you check up on what’s happening inside and outside your home while you are away, are benefits of smart technology for home security and safety. You can even see who is at your front door without having to open it!!

Although we are still in the relatively early days of the smart home, insurers and the tech companies behind the innovations are taking steps to forge partnerships between smart home gadgets and home insurance.

Linked systems for smarter outcomes

home technology

Burglar alarms and smoke detectors have been present in our homes for many years, but the internet of today is able to take sensors to a new level. Connecting smart appliances and smart devices means they can be controlled centrally and be connected to each other. That means that if an unexpected motion is detected, rather than just sounding an alarm, the central control could then trigger a mobile phone to alert the home owner or other more complex actions, such as streaming surveillance camera images directly to the police.

Smart water detectors are also available that can monitor all hot and cold water pipes running through the house along with systems that can turn off main water supply to prevent or reduce the devastation of water damage within the home.

Some insurance companies are already offering rewards for homes protected with smart gadgets.

However, this is likely to become much more mainstream as underwriters develop their products to take advantage of this new market.

This could mean cheaper premiums along with more partnerships between the technology and insurance providers.

Currently, it is mainly high-value properties that are likely to benefit.