Insurers offer discounts for smart home systems
Homeowners who add smart devices that monitor doors, windows and fire alarms, as well as potential household disasters like water leaks, can now enjoy discounts on their homeowners’ devices and insurance premiums. .
It comes as a growing number of companies are offering these discounts while striving to educate consumers on how certain smart home devices can prevent or mitigate damage. For example, nationwide reports that about two-thirds of homeowners currently use smart alarms, monitors or doorbells, but only 7% have used smart sensors to monitor water leaks – even though the leading cause of preventable claims for policyholders in their homeowners is non-weather-related water losses, which averaged $ 11,000 in damage.
“A key learning has been that consumers’ interest in safety is highest, but interest and awareness in water loss protection is low,” said Sarah Jacobs, vice president of development. from Nationwide’s personal lines, to PYMNTS in an email interview. “The expansion of the 2022 program will focus on raising awareness of the damage non-weather water can cause and increasing the number of homeowners protected by smart home water sensors. “
Policy and device discounts
Nationwide is not alone in offering promotions and discounts on smart devices, noting that its customers are saving 4% on their premiums. The company launched the program in three states in 2020, is currently offering it in 13 states, and announced on Monday October 11 that it will add more states in the coming months.
“The percentage of policyholders using the program is low as the program is in its early stages,” said Jacobs. “However, we are seeing significant growth and expect to see even more in the future as campaigns like this increase awareness of the program.”
Nationwide last year in partnership with Notion, a company owned by Comcast Cable, to provide a home monitoring system with sensors that monitor doors and windows, smoke / CO2 alarms and water leaks, alerting homeowners if something goes wrong.
Other insurers offering smart home discounts include Country Financial, which offers a break for smart thermostats; Amica, who given discounts and special prices for the installation of smart water security systems for the home; and USAA, which allow owners in some states to enroll in its Connected Home program and purchase discounted appliance kits.
Banking on smart home services
Home security products and services have also caught the attention of Google and Amazon. PYMNTS reported in June that home security company ADT is banking on a partnership with Google’s smart home services to boost revenue.
See also: ADT, Google developing new home security products, services
An earlier deal saw Google pay $ 450 million for a 6.6% stake in ADT. The companies said at the time that they planned to integrate Google’s hardware and services into the products of ADT and its team of more than 20,000 professionals, and that they would spend an additional $ 150 million on the marketing, technology, product development and employee training.
The two companies face competition from Amazon, which owns the Ring and SimpliSafe video doorbell companies.