Is Having a Smart Home Cheaper to Insure?


Written by Ryan Green
1 min, 35 secs Read
Updated On March 14, 2022

When smart technology became normalized due to our phones, it was only a matter of time before homes and vehicles followed. There was a report of at least 15 million smart homeowners in 2016. 

By 2021, the number had increased to over 35 million. Smart homes are not products that are still finding their barrings. They are on the verge of breaking into the mainstream, and homeowners’ insurance providers could not be more thrilled. That’s why they tend to treat smart homeowners to a break on their homeowners’ insurance rates

Why Homeowners’ Insurance Incentivizes Smart Homes

Smart homes do far more than just offer convenience through voice commands and automated functions; they can play a role in reducing your home’s daily energy footprint and increasing security. 

Insurance companies like this because smart homes can lower the risk of the policyholder filing a claim for damages. Insurers often look at the safety features of a house like smoke alarms, monitorable plumbing, and security systems to gauge risk -similar to how they look at cars and their drivers when underwriting auto policies. 


A smart home can monitor and automate several things at once, essentially keeping the house safe 24-hours a day. They often give a premium reduction for all the mentioned features. Sometimes, your home insurer may help cover the installation of a smart device in your home. 

Also, Read This: The Importance of Smart and Stylish Workspaces

Normalizing Smart Homes

Some insurance companies that specialize in homeowners’ insurance are joining the effort to normalize smart homes by offering more than just coverage. Insurers may offer sensors or hardware of their own in addition to covering certain installations, as previously mentioned. 

Major effort goes into risk or hazard detection systems like fire or flood detectors. Having these smart technologies not only lowers your homeowners’ premiums but also helps settle your claims faster with the data they may be recording. This information can also be shared with the insurance provider so they can gauge your home needs more in-depth. 

Insurers will continue to support the use of innovative technology designed to identify damage and prevent losses as fewer individuals file claims and the industry changes. 

For customers, analyzing the benefits offered by different home insurance providers may not only entail comparing rates but also deciding whether or not a certain smart technology perk is worth it.

Author: Ryan Green
A skilled financial blogger, Ryaan Green has an excellent 7+ years of experience as a finance expert and writer. He has already worked as a financial analyst and blogger with major brands. He is sure that his skills and 'learn & apply' attitude helps him fit right into the team and contribute to larger organizational goals. Having excellent Managing skills and being Adaptable to managing new responsibilities makes him a productive employee.
    error: