Technology is making our lives easier in many ways and now it can help you save money on your home insurance too. Read on to learn how new smart home devices are helping people to reduce and prevent insurance claims and save money on their policies. Some insurers are even offering smart home insurance discounts.

What are smart home devices?

Smart home technology, also called home automation, is the use of connected devices to manage and operate electronic systems in your home. These devices connect via a network, usually to the internet via Bluetooth or a LAN (local area network). The interconnected devices can then respond to commands, or use “skills,” to manage your home.

Vivint, Amazon’s Alexa and Echo Dot, and Google Home are some examples of connected devices that can manage your home’s lighting and temperature, and monitor and manage appliances and home systems.

Smart Home Device Options

There are a number of different smart home devices available to add to your home. Integrating the technology of these devices adds convenience and protection around the systems in your home while also boosting your home's value. The appliances and devices are wirelessly connected to give homeowners access and control from anywhere. Smart home technology protects the home by making it more secure and reducing the possibility for damage caused by perils such as theft or fire.

Here are the different kinds of smart home devices you can get for your home:

• Security systems and burglar alarms
• Smoke detectors
• Video surveillance cameras, including doorbells with cameras
• Thermostats
• Light controls
• Water and sensors and shut off systems

Smart home systems also provide data to insurance companies, helping them determine the risks and costs of insurance. System sensors can detect various potential problems and alert the homeowner through their phone. Some smart devices providers may offer incentives for installing them in your home.

What is a smart home?

A smart home pairs these devices with the systems in your home, allowing you to control things like the lighting and temperature from either a centralized control panel or your smartphone. Some systems are designed to be installed by professionals, while others can easily be installed by homeowners.

It’s important to consider how you are going to integrate the devices, given the consolidation in the smart home space. For example, Google now owns Nest, so Nest products work seamlessly with Google Home devices. It could be challenging to try and integrate products from a competitor, such as Amazon. Do your research and find the best smart home devices for your situation first, and then, build your smart home systems.

There are smart home devices that can detect fire and carbon monoxide and then tell you where the problem is in your house. There are also systems that can catch leaks, alert you to open doors and windows, or simply let you know where you’re wasting electricity. Technology integrations in your home, such as these, can improve your safety and save money.

Travelers Insurance Teams Up With Amazon

Travelers Insurance will send qualified homeowners policies in selected states a free Amazon Echo Dot device. Once homeowners receive and activate the Echo Dot, they are asked to download two Alexa skills to the device.

The Travelers Home Central skill for Alexa helps you to better maintain your home. Regular home maintenance takes time. It can be hard to stay on top of all of the many little things you must do, but proper routine maintenance is essential to remaining ahead of small problems that can turn into big claims.

For example, checking to make sure that pipes are insulated and not dripping is a small task that can save you from having an expensive cleanup after a pipe bursts or repairing water damage from a leak. This Alexa skill is available to anyone with an Alexa-enabled device. You don’t even have to be a policyholder to use it, but you do need to be a Travelers policyholder to participate in the Echo Dot device offer.

The Travelers Skill for Alexa is for policyholders, and it can help you manage your Travelers Insurance account.

Vivint and Liberty Mutual

Liberty Mutual Insurance has teamed up with Vivint, pairing an integrated smart home system with their homeowners insurance product.

Vivint offers a full smart home with professional installation. It also offers support that includes a sophisticated camera system indoors and out. Also included is burglary detection and smart locks, centralized controls for lighting and thermostats, and a smartphone app for remote accessibility and control.

The link between Vivint’s services and insurance discounts is clear. A continuously monitored and protected home significantly reduces the chances of a burglary happening or a fire getting out of control. Homeowners who take advantage of this program may receive a discount on the theft portion of their home insurance policy.

American Family and Ring

If you are an American Family policyholder, installing certain qualifying smart devices could save you money on your homeowners insurance.

In 2015, American Family Insurance and the Ring Video Doorbell company announced an unusual offering. If an American Family Insurance homeowner policyholder with a Ring doorbell had their home burglarized, Ring would reimburse the policyholder’s deductible. The wi-fi enabled doorbell features a camera, allowing the homeowner to “answer” the doorbell using a mobile device — and to see who is there.

In addition to home security, American Family also has discounts for using smart devices that detect water leaks before there’s extensive damage, and even discounts for using devices that can help you reduce your energy consumption.

Google Nest Smoke Detector/ Nest Protect

Google Nest devices are integrated tools that work with Google Home devices and services. Smart thermostats, cameras, doorbells, smoke and carbon monoxide alarms, locks, and an alarm system work together to keep your home running efficiently and safely. As with other smart home devices, installing and using these systems helps to keep your home safe.

The Nest smart home fire and CO alarms provide an early warning using a voice first. Anyone can see the benefit of a fire alarm that starts with a warning first, especially those who have ever charred a piece of toast thus setting off the full blast fire alarm terrifying the dog and all other inhabitants (as has this writer).

The home security/burglar alarm is similarly smart. It can let you know which windows are open and is simple to arm and disarm, either with or without a passcode. This is helpful if you have people in the home who either can’t remember passcodes or don’t like using them. You can also arm your alarm system via an app on your smartphone, just in case you leave the house and forget to do so.

Many Devices, Lots of Discounts

These are just a few of the many smart home companies out there, and just a sampling of the insurance companies that offer discounts for installing them. If you already have a smart home device, such as a Nest Secure Alarm System or a Ring Video Doorbell, check with your homeowners insurance company to see if the device qualifies you to receive a smart home insurance discount.

Or, if you don’t have any devices yet but are considering them, call your insurance company to see if they offer discounts for having smart home devices. You might receive guidance on what your insurance company prioritizes when giving discounts based on using these products, which can be helpful as you consider your home insurance options.

In addition to adding smart home devices to your home, there are a number of other ways you can add value to your home. Certain improvements can help if you're going to sell your home!

Image source: NicoElNino/shutterstock.com

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