Home Technology: A Primer
Indeed, the smart home has arrived and it will certainly change the way we live. Today, you will be able to control most things in your home through your phone and the internet. You can perform a variety of tasks with just one click of the button!
Smart home technology is really gaining popularity across the country today. A recent survey made by Coldwell Banker indicated that smart home technology has now become mainstream. It has become the trend.
The survey reported that 45% of Americans either already own some sort of smart home technology or plan to purchase within the next year. According to experts, the US market is expected to double within the next year.
In 2017, smart home technology is expected to be present in around 30 million homes in the country. The number of smart home devices has really grown tremendously.
Among the very popular ones are the smart appliances- washers, refrigerators, dryers, TV, etc.; the smart home safety and security systems- sensors, cameras, monitors, alarm systems; and the smart home energy equipment-smart thermostat, smart lighting, etc.
Well, the most obvious benefit we get from smart home devices is convenience. These connected devices can handle more operations.
Hence, you are freed up from performing those tasks yourself and therefore, you can engage in other worthwhile activities. Further, these devices can help you reduce cost and conserve energy.
For instance, smart air conditioners can be put off with one click when you are not at home. This will allow you to reduce your energy consumption and electric bill. The same is true with your smart lighting.
Another important benefit of using such smart devices is that they can actually prevent home accidents and improve your home safety.
For instance, a smoke detector can alert you via your phone if there’s a problem at home. A smart security system is very easy to set up and can help you monitor your house, watch for intruders and even check in on the temperature and air quality through built-in sensors.
A smart weather station can give your constant readings about what’s going on around your house and enables you to get accurate weather readings.
Smart home technology is also applicable for mobile homes, visit a home park and have an inquiry on how smart technology greatly protects mobile homes.
Insurance and smart home technology
Insurance companies favor smart home devices. This is because homes with home protection technology devices are protected homes.
Hence, these homes are subject to lower risk. A number of insurance carriers in the US are offering incentives to homes with smart devices ranging from moisture sensors to smart thermostats to video doorbells.
A certain insurance carrier offers a discount on homeowner’s insurance for a home with a home security monitor. A home alert discount can lead to up to 10% reduction in your home or renter’s insurance. You will have lower premium if you have an alarm system that detects door or window entry through motion sensors and an audible alarm.
Still, another carrier cuts the cost of fire insurance premium if your home has a smart smoke detector. Further, homes with water monitors and automated light and energy controls also enjoy insurance discounts in certain insurance carriers.
According to experts, people can leverage some of these connected devices to make themselves insurable. These devices can actually prevent losses. With fewer losses, more goes into the insurance company’s bottom line.
Experts further say these smart home devices can give the win-win situation to both the insurance clients and insurance companies. Clients benefit from getting lower rates. Insurance companies, on the other hand, benefit because, with fewer loss events from protected homes, more money goes to into their bottom line!
Recently, a research released by NTT Data, a global business and IT service provider, noted that 83% of US homeowner’s insurance carriers believe that smart home technology will attract new customers and improve customer relationships. Really, something good is expected with the interplay of smart technology with the insurance industry in the coming years.
However, there are still challenges faced by insurance carriers in implementing and finalizing smart home programs. Among these are the inability to gain access to data from smart homes, the difficulty of building analytics into the carrier underwriting process and the expense required to purchase and install devices.
The impact of smart home technology on the insurance industry will certainly still have a long way to go.
At the moment, if you are an insurance client, it is best to check out with your insurance agent if you can avail of certain discounts with your home technology smart devices when you acquire or renew your homeowner’s, renter’s, flood, fire insurance policies.
Contact us for more information on home technology discounts on insurance.
Latest posts by Steve Gebhardt (see all)
- What is Business interruption Insurance - June 29, 2020
- Business Interruption Insurance COVID-19 and Coverage Concerns - June 19, 2020
- What is Commercial Auto Insurance - June 12, 2020