Smart home insurance: can installing the latest home technology reduce your insurance premiums?
Your coffee is freshly made for you when you wake up. Your fridge lets you know when you’re running low on milk. And your heating is efficiently automatically turned on whilst you’re heading home from work, based on your phone’s location. There are lots of things to love about the added comfort and convenience of your smart home tech. But it doesn’t stop there. You might soon be loving these gadgets for the cash they could save you on your insurance premiums too.
Remote control
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 tech. And as insurance is all about risk, that means potentially lower prices for your insurance premiums.
The future for smart home enabled insurance
Controlling the lights in your home and security cameras that let you check up on what’s happening in the house when you’re away are just the start of the benefits of smart technology for home security and safety. We may still be in the relatively early days of the smart home, but insurers, as well as the tech companies behind the innovations, have been quick to notice this new market and are taking steps to forge links between smart home gadgets and home insurance.
Special policies for smart homes are starting to be offered, with more emerging all the time. Last year Panasonic launched a partnership with Allianz to link its smart home monitoring products directly with insurance services. With their package, the home is protected by a series of sensors directly linked to the insurance provider. If the smart system detects something like unexpected motion or a water leak, it automatically generates an investigation, triggering remedial action to be taken. For example, if a leak is detected the water will be turned off and a repair will be quickly made. This will minimise damage and reduce the cost of any claim payouts. Currently only available in Germany, there are similar offerings in France and it’s a model that is likely to find its way to the UK very soon.
Linked systems for smarter outcomes
We’ve had things like burglar alarms and smoke detectors in our homes for many years, but the internet of things takes these sensors to a new level. By connecting smart appliances and smart devices together, they can be controlled centrally and talk to each other. That means that if an unexpected motion is detected, rather than just sounding an alarm, the central control could then trigger other more complex actions, such as blocking exits or streaming surveillance camera images directly to the police.
Smart home insurance discounts
Personal investment in smart home technology is still in its infancy. Research by Deloitte last year found that only 2% of adults in the UK own smart lights and smart appliances. But growth in the number of smart gadgets in the home is predicted as the public’s understanding of how it can enhance life and potentially improve bank balances, increases.
Some insurance companies already offer rewards for homes protected with smart gadgets. This is likely to become more mainstream as underwriters evolve their offerings to take advantage of this new market. This could mean cheaper premiums or more partnerships between the tech and insurance providers, aiming towards a situation where you take a greater control of improved home security and maintenance through smart devices and have insurance as a backup if the worst does happen. At present though, it’s mainly high-value properties that are likely to benefit.
How can I find cheap insurance for my smart home?
If you have smart home technology and want to find out if it could help lower your home insurance premiums, speak to our team at Park Insurance.
We’re independent brokers with expert industry knowledge and excellent contacts with some of the UK’s biggest insurance providers. We use our detailed understanding of the industry to help negotiate the best value deals, giving you cover you can count on at a competitive price.
Call us now on 0117 955 6835 or get in touch.