Technology has become an essential part of modern life, so it's no surprise that we use it throughout our home. According to the Home Improvement Research Institute, the global smart home device market is expected to exceed $167 billion by 2025 as more homeowners embrace the technology.
But there's more to smart home tech than cool features and convenience. These devices can help increase your home's efficiency and enhance its security. Plus, there are programs that may even help save you money.
What is smart home technology?
Smart home technology refers to appliances and devices that can be controlled remotely using an internet-connected device, such as a tablet, smartphone or gaming console. Available smart home devices include speakers, televisions, thermostats, locks, lighting and security cameras, even refrigerators and ovens.
A connected home, also called a smart home, might have several interlinked smart home devices. Users can control them by voice or mobile app, or even set up a home automation system with schedules for lighting changes, climate control and more.
The benefits of a connected home
The benefits of smart home technology are powerful. First, it's convenient. You don't have to lift a finger to vacuum the floor. You can check to see who's knocking at the door before answering it. When you need to add an item to your grocery list, you don't have to stop what you're doing or risk forgetting it.
A second benefit is the peace of mind that comes when you can keep your home and family more secure, even when you're at work or away on vacation. Whether they’re helping you view live security footage or make sure the garage door is shut, smart home devices can be helpful and convenient.
Plus, some of these devices are just fun to use.
But there’s another benefit you might be not be aware of, some smart home device programs can also help you save money on your home insurance.
Insurance discounts for smart home devices
Why would an insurance company care about smart home devices? Well, these devices can help prevent property issues like theft, fire and water damage. For instance, security devices like cameras and alarm systems can be a major deterrent for would-be burglars.
If there is an issue, a smart device can also help reduce the amount of damage that occurs. Let's say you have a smart smoke detector that automatically alerts the fire department. If there’s an emergency, firefighters can respond faster and prevent further damage to your home and possessions.
Without these devices, insurance companies would find themselves repairing or replacing covered property more frequently. Many providers offer discounts for customers who use certain smart home devices to encourage their use and to help save the company money, too.
While most discounts are for home security devices, every insurer will have different policies and may offer discounts for other types of devices as well.
Earn discounts and avoid claims with smart home devices.
Every insurance company is different, and not all devices will qualify for a discount with every provider. Check with your provider for specific requirements on your policy.
But even if your insurance doesn't offer a discount for certain devices, they may still be able to help you avoid or reduce home insurance claims. Here are a few devices to consider:
Video doorbell
Doorbell cameras allow you to see who's at the door, whether you're inside your home or not. Most of these devices also offer motion detection, so you can receive an alert and start recording when someone approaches your door. Some also enable two-way talk through a built-in microphone and speaker. These features can help deter thieves and so-called porch pirates.
Indoor and outdoor security cameras
Monitor your home inside and out with cameras that offer motion-activated recording, two-way talk and alerts. These devices can help prevent theft, but can also alert you to a fire, burst pipe or other hazard when you're out of the house.
Door and window sensors
Get an alert when a door or window is opened. Some systems will allow you to set a schedule so that alarms can be silenced or minimized when desired but stay loud in the middle of the night or when you're out of the house.
Flood and temperature sensors
These sensors can alert you to significant temperature fluctuations and help prevent water damage or frozen pipes in your attic, basement, laundry room or vacation home.
Locks
Control access to your home remotely using a smart lock. These devices can use mobile apps, keypads and even fingerprint scanners, so you don't have to worry about hiding a key where a potential intruder could find it.
Smoke and carbon monoxide detectors
Smoke detectors and carbon monoxide alarms are a safety necessity. When you choose a smart version of these devices, you can access features like smartphone alerts and automatic calls to 911.
Water or gas shutoff
With smart devices, you can quickly turn off your water or gas when necessary, no matter where you are. This helps you avoid costly water damage or dangerous gas leaks.
Electrical hazard detectors
These devices detect early warning signs of electrical problems in your home's wiring so you can address them before they cause an electrical fire.
Garage controllers
An open garage can be an invitation to would-be burglars, especially if there are no cars parked nearby. With a connected garage door opener, you can make sure everything is closed when it should be.
Plugs
Many home fires have happened because someone left a space heater or curling iron turned on after they left the house. Smart plugs can help you make sure these devices are turned off.
Lighting
With smart lighting, you can control your home’s lamps or lights remotely, or set them to turn on and off automatically to make it look like someone is in the house when you're out of town.
Thermostats
Control the temperature of your home remotely to prevent pipes from freezing. Some smart thermostats will also work along with smart smoke alarms, since a draft of air can cause flames to grow larger.
Smart speakers
These devices can help you go hands-free, allowing you to control other smart devices using voice commands or play music from your smartphone using Bluetooth. Some smart speakers also can detect the sound of smoke alarms, carbon monoxide alarms or breaking glass and send an alert to your smartphone.
How much can I save with a connected home?
Individually, any of these devices may help you avoid expensive insurance claims. Combining several in a connected home may be even more beneficial.
When it comes to discounts on your insurance, most smart home devices typically will get you 5% to 20% off your premium, but this can vary based on the devices you have, as well as other risks to your home.
What types of discounts are available?
Many insurance companies offer discounts for connected homes, but that's not the only way you can save money with home automation.
Some insurers partner with security providers to offer discounts on smart home security devices, installation services and even monthly monitoring fees.
You also can help protect your family and home by installing fire sprinklers and flood detection devices, adding deadbolts to your doors, and using security systems among other safety measures Opens in a New Window. Your insurance provider may offer a discount on your home insurance premium if you take these precautions.
The USAA Connected Home program See note 1 can also help you save on your USAA homeowners insurance when you enroll in the program and are rewarded with more discounts for things like loyalty See note 2 and being claims-free. See note 3 You can also check out discounts on safety system options with USAA Perks®. Opens in a New Window
Protect your home, protect your finances.
Saving money may not be the top reason you choose to purchase a smart home device, but you can still take advantage of these tools’ many benefits. From premium discounts to preventing property damage, there are many ways that smart home devices may help protect your finances and your home.
Connect your home.
Make your home smarter and save on your homeowners insurance.