Can smart home devices lower my homeowners insurance premium?

I've been getting ads for smart home devices like leak detectors, video doorbells, and security systems. My brother has a few and actually likes the alerts for stuff, and someone mentioned these might lower my homeowners insurance or help cut the cost a little bit. Is that actually true, and is it worth buying these just for the discount?

Yes, you can save on premiums with smart home tech, but the discounts vary and may be less than what you're seeing in ads or hearing from friends. But the peace of mind can be worth as much as the discount, depending on how much tech you want in the house.

Insurance companies set your premium based on risk. The less likely you are to file a claim, the less you cost them, and smart home devices that catch problems early (like a water leak before it becomes a flood, or a break-in attempt before it becomes a theft) genuinely reduce that risk. That's why more insurers are starting to reward homeowners who install them.

The devices most likely to earn you a discount are water leak detectors, smart smoke and carbon monoxide detectors, and monitored security systems. Water damage is one of the most expensive and common homeowners claims, so insurers are particularly interested in anything that catches it early. A full home security system with professional monitoring tends to earn the largest discounts, sometimes up to 10% depending on your insurer.

Not every insurer offers these discounts, though, and the ones that do don't all offer the same amount. Most discounts in this category run between 1% and 5%, which on a $1,500 annual premium works out to $15 to $75 a year. The better case for smart home devices is the combination of safety benefits and modest premium savings together. Some companies will even provide a device for free or at a discount because it benefits them, too. For example, State Farm offers a device that tracks electrical safety and can help prevent fires. Nationwide has similar tools for water leak detection as well as electrical hazards.

Before you buy anything, call your insurer and ask specifically which types of devices qualify for a discount, if they offer any to customers directly, and what documentation they might need. Some require proof of professional monitoring or a certificate of installation. I hope this helps!