Smart Home Devices That Can Cut Your Insurance Premiums

Your home insurance company may offer a smart home insurance discount, which may reduce your home insurance premium or the cost to purchase a smart home device or both. Smart home discounts are available from several national carriers, including Allstate, Nationwide, State Farm and Farmers.

Keep reading to learn the different smart home discounts available and if they’re worth it.

What Is a Smart-Home Discount?

A smart-home discount is a discount for homeowners that install smart home technology in their home that provide surveillance, monitor indoor temperatures and humidity, track when windows or doors open and close, and more. Smart-home discounts generally come in one of two forms:

  • Discount on your home insurance policy
  • Discount towards a smart home device or system purchase

Homeowners insurance companies provide these smart-home discounts to incentivize homeowners to protect their homes. Over time, these devices can help prevent the chance of needing to file a claim or reduce the overall damages. A smart water lock, for example, can help contain damages from leaks. On top of more security, homeowners save on home insurance.

How Does a Smart-Home Device Insurance Discount Work?

Smart home insurance discounts can apply either to your homeowners insurance policy or smart device purchase.

Discount on Your Home Insurance Policy

If you already own a smart home setup or purchase a kit mid-policy, notify your insurer and they may apply a discount toward your homeowners insurance premium. Below are common smart devices that may qualify you for a policy discount:

  • Door and window sensors
  • Flood/leak detectors
  • Smart smoke detectors
  • Smart CO2 emission detectors
  • Motion sensors
  • Video surveillance with night vision
  • Noise detection
  • Smart door locks
  • Doorbell cameras

Your insurance company may request documentation that the smart home devices are installed before applying your policy discount.

Discount on Your Smart Device Purchase

Several insurance companies have partnered with smart-home brands to cut the cost of smart home devices. You may need a discount code to enter at the product checkout page.

Homeowners insurance companies provide smart-home discounts to incentivize homeowners to protect their homes.

Some insurers will not allow you to stack policy and device purchase discounts. For example, State Farm customers can receive a smart-home discount on their home insurance policy or a completely free three-year subscription to Ting (fire safety technology service), but not both.

Which Insurance Companies Offer Smart-Home Device Discounts?

Smart home discounts are available from several national insurance carriers, including:

  • Allstate
  • American Family
  • Amica
  • Farmers
  • Hippo
  • Liberty Mutual
  • Nationwide
  • State Farm
  • USAA

Depending on the insurer, you may receive a discount on your policy or savings applied to a smart home device or service plan. Our next section will explain the different smart home programs by carrier.

Insurance Carriers with Smart-Home Programs and Discounts

Company

Device Purchase Discount

Policy Discount

Allstate

Canary

Yes

American Family

Hedge, ADT, Nest

Yes

Amica

Flo by Moen, Kangaroo, Guardian by Elexa

Yes

Hippo

Ring, SimpliSafe, Notion

Yes

Liberty Mutual

Vivint

Yes

Nationwide

Notion

Yes

State Farm

Ting

Yes

USAA

Resideo, Honeywell, Blue by ADT

Yes

Allstate

Allstate offers a 30% discount on a Canary 1080p HD security camera and $20 off the annual Canary Premium Service plan. The camera costs $69 after the discount (originally $99).

After your purchase, you will receive an email with a $20 discount on a premium service plan, which offers one-touch first responder contact, unlimited video downloads and more. The plan costs $79 per year after the discount (originally $99) for the first device. If you enroll in the Premium service plan, Allstate will also apply a 5% discount on your homeowners insurance policy.

The Canary purchase is probably worth it. Even without subscribing to the premium service plan, having an HD camera to monitor your front door or backdoor can be useful.

American Family

On top of a 5% smart home discount, American Family customers can purchase discounted products from Hedge or professional monitoring by ADT.

  • Hedge starter packages cost $74.99, no monthly fees
  • ADT professional monitoring starts at $45.99 per month

Hedge packages are worth it, but not ADT professional monitoring. Costing $74.99 for a Hedge starter package, American Family customers will already save $61 within 12 months after the 5% discount — based on the national average homeowners insurance rate ($1,213.89). ADT monitoring, however, is a significant cost starting at $552 per year and will likely eclipse your 5% policy discount.

Amica

Homeowners insured by Amica can a discount on Moen, Kangaroo or Elexa smart devices:

  • 20% discount off Flo by Moen smart water detectors
  • 20% off Kangaroo home security systems and water leak detectors
  • 25% off Guardian by Elexa water leak detectors

Moen and Elexa may be worth the cost, but not Kangaroo. Kangaroo charges annual fees, which can slash any savings Amica applies towards your homeowners insurance policy. The other two products revolve around leak detection, which can be useful if you have old pipes prone to bursting. A Flo by Moen device may include a Smart Water Shutoff feature, which can automatically turn off the water before catastrophic water damage results in a costly homeowners insurance claim.

Hippo

Hippo customers can choose products from Ring, SimpliSafe and Notion to qualify for a 10% to 13% discount on their home policy. Hippo has sent qualified homeowners a free Notion device and applied a discount to their policies if they activated the kit within 55 days of buying the home insurance policy.

The devices may be worth it, but professional monitoring — maybe. One-time purchases with no annual subscriptions eventually pay themselves off with the 10% discount.

Professional monitoring services, however, have recurring charges and can quickly eat into savings. With the 13% professional monitoring discount, customers can save $158 on home insurance based on the national average home insurance rate ($1,213.89). Since professional monitoring often involves recurring fees, you’ll want to measure the cost against your policy discount.

Liberty Mutual

Liberty Mutual has partnered with Vivint to offer customers $100 off select smart home devices. Vivint sells a suite of home security products to their customers, such as SkyControl panels, indoor and outdoor cameras, smart locks and burglary protection.

The fine print shows Liberty Mutual’s smart home program probably is not worth it. Yes, you get $100 off select products, but the following requirements may apply:

  • $599.99 equipment purchase minimum
  • Monthly fees start at $29.99
  • $49 to $199 installation fee

Your money would be better spent buying another smart home system, even without Liberty Mutual’s discount.

Nationwide

Nationwide offers a 10% discount to policyholders with smart home systems plus a 50% discount on Notion sensor kits — that’s significant savings. The following packages under the Nationwide smart home program:

  • Three-sensor kit: $75 (originally $149)
  • Five-sensor kit: $100 (originally $199)
  • Additional sensors: 20% off

You will need to talk to your insurance agent first and you will receive an email with a purchase link for the discounted products. Participants should activate their Notion kit within 55 days of purchasing the kit or the 10% policy discount will be removed.

The Notion sensor kits are probably worth it. With a 50% discount, no monthly subscription fees and a 10% discount, Nationwide customers can enjoy significant savings by joining the carrier’s smart home program.

Your insurance company may request documentation that the smart home devices are installed before applying your policy discount.

State Farm

State Farm offers a completely free three-year subscription to Ting Service, a smart home device that monitors your home’s electrical network for fire hazards. Both the product and shipping are free, as well. Unfortunately, customers cannot stack the free Ting service with a policy discount.

The free three-year subscription to Ting Service might be worth it. If you’re concerned about electrical hazards — you have an older home, for instance — then the extra safety precaution may be worth it. Otherwise, you may want to look into State Farm’s home security system discount by installing another type of smart home device.

USAA

USAA homeowners that install smart home devices by Honeywell and Resideo can qualify for a home policy discount. With these devices, there are no monthly fees unless you purchase extended video storage. USAA offers three types of discounted kits:

  • Bronze ($205.50): Includes 1 indoor camera, 2 water leak detectors
  • Silver ($333.50): 1 indoor camera, 4 water leak detectors
  • Gold ($462): 1 indoor camera, 4 water leak detectors, 1 thermostat and temperature sensor

Only devices that work with the Honeywell Home app will be considered for the policy discount. Other smart home technology companies, like Nest and Notion, will not be eligible.

Purchasing a Honeywell/Resideo smart home device may be worth it. Honeywell/Resideo products can be one-time purchases (no monthly fees) that will pay for themselves over time if you maintain your smart home discount and USAA membership.

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Which Smart-Home Devices Provide Discounts on Insurance?

Different insurance companies will accept different smart home brands when applying a discount toward your home insurance policy. Below are brands that some insurers may accept:

Smart Home Device

Brand Examples

Burglar Alarms

SimpliSafe, Ring, ADT

Smart Temperature Detectors

Nest, Honeywell, Ecobee, Lux, Sesi, Bosch, Wyze, Mysa, Cielo, Kangaroo

Smart Security Devices

Ring, Nest, Hello, Skybell, Ring, Wyze, Arlo, SimpliSafe, Vivint, Abode, Cove, Frontpoint

Window/Door, Sound/Motion Sensors

SimpliSafe, SmartThings, Notion, Abode, Cox, Kangaroo, Ring

Fire/Smoke Alarms

SimpliSafe, Kangaroo, Nest, FirstAlert, X-Sense, Roost

Smart Water Leak Detectors

StreamLabs, H2Know, Phyn, Guardian, Flume, Flo by Moen, Kangaroo, SimpliSafe, LeakSmart, Notion, Honeywell

Source: Amica. Eligible brands will vary by insurance company.

How Do I Get a Smart-Home Discount?

Start by asking your insurance company if they offer a smart home discount and which devices are accepted. If your insurance company has partnered with a smart-home brand, you may need to use a discount code to apply the savings at checkout. After purchasing the device, your insurer may request documentation that the smart home device was installed.

Are Smart-Home Discounts Worth It?

Oftentimes, a smart home discount applied toward your home insurance policy will be worth the initial investment. The annual savings can help you recoup the cost of purchasing and setting up the smart home device.

For example, say you’re paying $1,200 for home insurance and your provider offers a 10% discount if you install smart cameras and detectors. You install Nest Protect, which costs $120. In this case, the savings from the smart home discount ($120) covered the product price in the first year.

Be wary of smart home setups that charge monthly or annual fees. The recurring fees paid to the device company can quickly outpace any savings from your home insurer.

FAQs

Why do insurance companies reward smart-home devices?

Insurance companies offer policy discounts or subsidize purchases for smart-home devices because it improves the safety of your home. Smart home kits can deter break-ins and help you respond to emergencies faster, which may lower the frequency or severity of covered claims.

Does insurance cover smart-home data privacy?

You may need to agree to surrender the data your smart home devices collect to the insurance company in exchange for the discount. The information generally will not be shared with other third parties or be used for rating your future premiums but you should always confirm this with your insurer.

Do security cameras reduce my insurance costs?

Installing security cameras in your home can qualify for a discount on your home insurance policy depending on your insurance carrier.

Key Takeaways

  • A smart home discount is a type of homeowners insurance discount available to homeowners that install smart home devices in their homes.
  • Smart home discounts can be discounts applied on your home insurance policy or toward the purchase of a smart home device or service.
  • Examples of smart home devices that may qualify you for a smart home policy discount include door and window sensors, flood detectors, smoke detectors, video surveillance and smart door locks.
  • National home insurance carriers that offer smart home discounts include Allstate, Farmers, Liberty Mutual, Nationwide and State Farm.
  • Smart home policy discounts are often worth the initial cost of buying and installing the smart home device but be wary of recurring fees charged by the device company, which can reduce or eclipse any savings.

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