Smart Home Insurance – How Wireless Home Security Systems Can Save You Money
Smart home insurance is becoming more prevalent. The Internet of Things (IoTs) is fueling an increasing appetite for smart home devices to assist families in every way, and nowhere is this more apparent than in the home. These devices are creating massive amounts of data, all of which makes for new ways for home insurers to not only interact with their clients, but to also harness that data to ultimately unleash new business opportunities as well. One area that is particularly ripe for growth is the realm of “smart home automation.” For years, automation has been a technological pipe dream; however, major technological advances have paved the way toward home automation technology that is both affordable and easy to operate.
In many ways, insurance companies have lagged behind in exploiting this technology. However, just a few short months ago, the Insurance Information Institute announced that its members had collectively generated over five billion data points, or petabytes worth in data, from more than 25 million smart home devices. Not only did these insurers collectively generate this impressive amount of data points, they also decided to make this information available to the general public for anyone who would take the time to request it. As you may imagine, this has caused quite a stir amongst insurance companies. Insurers are scrambling to figure out what to do with this huge data pool.
The first step for most insurance companies is figuring out what smart home technologies they should be focusing on. Naturally, since these devices can access vast amounts of information about a homeowner, insurers need a way to allow these devices to communicate with each other and with third parties such as third party service providers. Some smart home devices already allow communication between multiple entities. However, this capability is very basic at this point and is certainly not complete. Ideally, the entire network of smart home devices will be able to communicate with each other. By doing this, insurers will be able to get real-time quotes, collect accurate data about their clients, and provide better customer service.
Of course, even before the introduction of these smart home devices, companies have invested heavily in educating homeowners about the importance of maintaining their home insurance policy and getting any necessary repairs completed as needed. This has led to more people taking out policies in recent years. What has not changed, however, is the fact that people are still more likely to suffer a loss if they live in a home that is not adequately insured. Thus, if you are a smart homeowner, you should keep this fact in mind whenever you are considering purchasing a new policy. Insurance rates have not fallen dramatically; on the contrary, they are actually rising.
Many insurance providers want to encourage smart homeowners to install high-tech devices because they believe this will help lower home insurance premiums. To do this, they offer discounts on devices that will help prevent flooding, fires, and smoke damage. It makes good sense to spend money on a device that will allow you to reduce the risk of loss due to water damage, for instance. This, in turn, will lower your insurance premium. By offering such discounts, insurance providers are encouraging you to take steps that will lower your risk of loss.
Another way that smart home systems can save money is through “smart deductible”. Basically, you agree to pay a certain amount of money up front before the insurance company pays anything. For instance, you can agree to pay $500 up front before the insurance company will pay anything at all. In exchange, the insurance provider will agree not to charge you an excess fee. Thus, by using smart-home insurance discounts, you can save money on your premiums.
Other insurance providers, such as U negotiators, also offer similar discounts. Some companies offer savings of ten percent or more on your premiums. Because these companies work with the USAA, you can be sure that you will have access to these savings.
In conclusion, smart technology and lower insurance premiums can be found for everyone’s needs. In order to get your insurance quotes, you should access the websites of the leading insurers. Once you find a quote that suits your needs and budget, simply request your proof of insurance from your local authority. This proof of insurance will entitle you to further discounts.