Smart home gear will make your home life easier. Be it smart thermostats that can automate your home’s temperature, color-changing light bulbs that can be controlled from your phone, or smart speakers that can do almost anything with simple voice commands. But did you know that some smart home tech can also you save money? We found through our research that smart home tech that can help protect against property loss can also earn you a notable discount on your homeowners’ or renters’ insurance.
After talking to seven of the nation’s top insurance companies, we learned that smart home gear that can prevent property theft and/or fire or water damage are the most likely devices and systems that will score you discounts. The discounts range from 5 to 20 percent, which fluctuate depending on where you live and the kind of device you’ve installed. Here are the smart home product categories most insurance companies offer policy discounts on. Scroll down and we’ll give you more specific information from insurance companies we polled for this story.
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Home security systems
Perhaps not surprisingly, most of the insurance companies we spoke with said they offer discounts for home security systems that include components such as motion and door/window sensors, security cameras, smoke detectors, water leak detectors, and the like. In most cases, however, the insurance company will only offer a discount if the system includes professional third-party monitoring, a paid subscription service offered by the system manufacturer. Don’t worry, none of the systems we’ve reviewed require long-term contracts, and they’re all relatively inexpensive.
You won’t need to hire professionals to install a home security system for you, either. Provided you have a screwdriver and a little technical knowhow, you can do it all yourself. One of our favorite DIY home security systems, the $250 Ring Alarm Pro, is very easy to set up and expand, and it comes with an integrated Wi-Fi 6 router with LTE backup should your primary broadband service temporarily fail. Ring’s professional monitoring service is also relatively affordable, coming in at just $20 a month.
Another excellent example is the Abode Iota, which has a 1080p security camera integrated into its hub (as with Ring’s product, you can add more). You can get the Abode for $300 on Amazon, and you can sign up for professional monitoring for about $20 a month.
You’ll find links to many of our other smart home system reviews at the preceding link.
Security cameras and video doorbells
Some insurance companies also offer discounts for security camera systems, especially if there’s professional monitoring involved. Amica, for example, does offer discounts for systems even without monitoring, but the discounts are much better when there’s a third-party watching over your property.
One example of a security camera system that would fit this criteria is Arlo, especially if you opt for the top-tier Arlo Secure Plus plan, which adds 24/7 professional monitoring. It does cost $25 a month, but that covers an unlimited number of cameras, which include the smaller security cameras as well as a video doorbell, both of which Arlo offers. An Arlo Essential camera is around $40 while the Arlo Video Doorbell is about $130.
There’s also SimpliSafe’s Fast Protect professional monitoring service, which offers 24/7 live guard protection. Professional agents can even access your camera’s video feed and microphone to divert a threat. The company recently announced plans to use artificial intelligence in addition to human agents to monitor its customers’ security systems. The service is a bit on the pricier side though, at around $30 a month.
If those don’t fit your needs, here’s where you’ll find our other home security camera reviews.
Smoke, fire, and carbon monoxide alarms
Losing your home to a fire is a terrifying prospect, which is why every home should have a smoke alarm in every bedroom. Many insurance companies offer discounts for some kind of fire or smoke detector. But a smart smoke detector can alert you even when you’re not at home, which is helpful for protecting not just your loved ones but also your valuable assets.
We think the $119 Nest Protect is the best smart smoke alarm overall, thanks to its user-friendly app and overall reliability. The alarms are varied and it has voice alerts as well. We also liked the Kidde Smart Detection Smoke + Carbon Monoxide Alarm, which emits voice warnings for fire and carbon monoxide danger in addition to the usual beeps. It retails for around $116.
If you have a fire alarm that’s integrated into a monitored home security system that can contact the local fire department, so much the better. Abode, Ring, and SimpliSafe all offer such integrations.
Looking to protect your family and home from fire? Don’t miss any of our in-depth smart smoke detector reviews.
Water leak sensors and smart shut-off valves
While fire is a legitimate fear for most homeowners, water is actually a far more likely cause of property damage. Be it from a burst pipe, a hole in the roof, or a clogged toilet, water leaks are a very—and costly—common occurrence. That’s why a water leak sensor is a wise investment for most homeowners. Plus, a lot of insurance companies offer discounts if you install them. It’s best to install these sensors in areas where leaks are most likely to occur, such as laundry rooms, bathrooms, and water heater closets.
The Phyn Smart Water Sensor is our pick for the best smart water leak detector for a few reasons. It sends an immediate warning the second water touches it, it operates on a couple of AA batteries, and it’s relatively inexpensive at just $40. If you also own the Phyn Plus smart water valve, it can automatically turn off your main water supply as well.
Our runner-up is the $50 Flo by Moen Smart Water Detector, which can let you know about the presence of water in places it shouldn’t be. Of course, if you already have a Flo by Moen Smart Water Shutoff valve, it’s a no-brainer. It also informs you of water pressure and ambient temperature and humidity if they fall outside of normal range.
As with smoke detectors, some smart home system vendors either offer their own products in these categories, which you can integrate into their broader home security system, or they partner with third parties for the same. Abode, Arlo, Notion, Ring, SimpliSafe, and Wyze Labs all do this.
Flo and Phyn aren’t the only games in town. Be sure to read our other water leak detection product reviews.
What some of the major insurance companies offer
The following are a few more details on the kinds of smart home tech discounts that some of the country’s major insurers offer. Deals vary wildly depending on the device and where you live. Most companies simply encouraged customers to call their local representatives for more information. That said, we did get some specifics that we’ll share below.
Allstate told us that it offers customers up to a 5 percent “protective device discount” for items like a smoke detector, fire extinguisher, connected security cameras, home security systems and water leak detectors. The validation process is different for each device, but generally speaking, you will want professional monitoring to have the best chances to qualify. A representative also told us that some device—ssuch as a burglar alarm with third-party monitoring—would need documentation, but a simple smoke detector would not.Amica
Amica rewards policyholders with discounts for a wide array of smart home tech that include burglar alarms, smart temperature detection devices, smart security devices, fire and smoke alarms, electrical fault monitoring, as well as smart water leak detection tech. Amica also offers heftier discounts from vendor partners like Moen, Guardian, StreamLabs, Flume and Kangaroo.
Though the discounts vary depending on where you live, Amica states that you get the best discount for professionally monitored products.
Farmers Insurance has a 5 to 20 percent discount for smart home devices that reduce the risk of fire, theft or water damage. Bigger discounts are typically given to devices that have an outside signal and connection to local authorities.
Nationwide is able to give a Smart Home discount for select devices, depending on which state they live in. For the best discounts, it recommends you install devices from the following partner vendors: LeakBot, Notion, Phyn, Resideo, SimpliSafe, and Ting.
Progressive policyholders may earn discounts for alarm systems, which include burglar and fire alarms. Centrally monitored security systems and automatic fire sprinklers might also be eligible for a discount, depending on your location.
State Farm offers a home security insurance discount if you installed a fire, smoke or burglar alarm or any other home monitoring system. It is currently partnered with ADT to offer a special ADT Home Security Savings and Insurance Discount of up to 6 percent for a few select states.
Additionally, State Farm has expanded its Ting fire safety program where it hands out a free Ting smart plug-in sensor to eligible customers. The plug-in sensor monitors your home for dangerous electrical arcing that could cause a fire. Installing a Tin won’t earn you a discount on your insurance, but customers who have one receive a $1,000 credit for professional remediation of electrical fire hazards if any are required.
Travelers’ policyholders should be able to get a small discount in their insurance premium if they install an alarm system, with greater savings if there’s third-party central monitoring rather than self-monitored systems. There also might be additional discounts if you have water sensors and emergency shutoff valves, such as a Flo by Moen or Phyn Plus.
What about your insurance company?
Don’t see your insurance company listed here? We contacted many of the largest insurance providers, but by no means all of them. We encourage you to call yours to find out what they’ll do for you should you decide to install a home security system or one or more of the home safety devices we’ve listed above.
And if they don’t, maybe it’s time you shopped around for one that can give you a better deal!
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