How a Smart Thermostat Could Help You Lower Your Home Insurance Premium

by Ryan HanleyJuly 14, 2017

Ready to transform your ordinary home into a stellar one? Invest in smart home technology – you’ll be glad you did. Today, many home insurance discounts and premium reductions are available to homebuyers who implement smart home devices. Here’s what you need to know to get started.


The Benefits of Home Automation

With smart home technology at your disposal, you can enjoy a variety of benefits, including…

  • Unparalleled Control

    Smart home technology makes it easy to control your home’s temperature, turn off home lights and much more—all from your smartphone or tablet, anywhere you have a Wi-Fi connection.

  • Improved Safety

    With a smart security system, you can ensure your house and personal belongings are fully protected even when you’re not there. Plus, with smart fire detectors and smart carbon monoxide detectors, you can receive instant mobile alerts if there’s an emergency at home.

  • Increased Accessibility

    Let’s face it–everyday tasks like unlocking the front door or turning on lights can be difficult for those who are elderly or disabled. Fortunately, smart home technology enables people to use voice commands to improve accessibility. It even allows people to set up automated systems for lawn care and other home maintenance tasks.

  • Exceptional Energy Efficiency

    Smart home technology ensures appliances will remain in use only when you need them. As such, you can cut down on energy consumption and reduce your monthly and annual energy costs. For example, a U.S. Environmental Protection Agency (EPA) study showed smart thermostat technology alone helped homeowners lower their annual energy bills between 10 percent and 30 percent.

Expect the push for the latest and greatest smart home technologies to continue in the foreseeable future. Global management and professional services company Accenture estimated the global connected home market hit $235 billion last year, and this figure may continue to rise in the years to come.

Potential Insurance Discounts

Ultimately, smart home technology provides an opportunity for both homeowners and independent insurance agents as well.

Homeowners can deploy best-in-class smart devices to simplify and enhance their day-to-day activities. On the other hand, independent insurance agents can provide smart home discounts to clients — a trend that appears likely to gain momentum over the next few years.

Today, many home insurance discounts are available to homebuyers who implement smart home devices, including:

  • Monitoring and Automation

    A home monitoring and automation system takes only a few minutes to setup and provides automatic connection to local authorities, mobile notifications with live HD video and audio as well as air quality monitoring capabilities. Meanwhile, some insurance companies are providing discounts and gift cards to homeowners who install home monitoring and automation systems.

  • Energy Management

    Reducing energy bills is a top priority for many homeowners, yet finding fast, effective solutions to cut energy costs may prove to be a major struggle. Smart home energy management products help homeowners limit risk by allowing them to remotely control a house’s thermostat, provide backup power for appliances and electronics during a power outage and automate home interior and exterior lighting.

  • Security

    Home insurance alone offers limited protection of a homeowner’s belongings and property. Conversely, there are smart security solutions that offer burglary and fire monitoring, remote door lock/unlock, monitored flood/water sensors and other advanced technology. These systems help homeowners limit short- and long-term risk and may help homeowners lower their insurance premiums.

Although smart home devices may seem like major investments at first, it is important to understand the long-term value of these devices. In fact, smart home technologies may help a homeowner lower his or her home insurance premium in many different ways, including:

  • Alarm Credits

    Many home insurance companies offer premium credits to homeowners who install sprinkler systems and fire alarms—smart or not. Homes with security systems in place are three times less likely to be burglarized.

  • Automatic Detection Device Rebates

    With a temperature monitoring, water leak or gas leak detection system, a homeowner may be able to cut his or her home insurance costs.

  • Safe Home Discounts

    Some home insurance providers offer discounts of up to 15 percent to homeowners who implement home security systems or other systems that protect against fire and theft.


How to Reduce Your Premium

So what does it take to learn about the savings that you may be able to receive on your home insurance? Here are three tips to help you reduce your home insurance premium and capitalize on smart home devices at the same time:

  • Consult with an independent insurance agent

    Meet with an independent insurance agent about smart home discounts – you’ll be happy you did. By doing so, you can explore a wide range of potential smart home devices and find out how these gadgets can help you protect your residence and save money on your home insurance.

  • Explore all of the home insurance options at your disposal

    There is no reason to settle for one quote from one home insurance company. Instead, work with several home insurance companies, and you can maximize your smart home savings.

  • Ask plenty of questions

An informed homeowner will go the extra mile to ask questions about any and all smart home discounts. This homeowner can learn about all available smart home savings and find home insurance coverage that matches or exceeds his or her expectations.

Lastly, don’t take shortcuts as you search for smart home devices to help you save money on your home insurance. If you ever have concerns or questions, an independent insurance agent is ready to assist you. Because they provide honest, unbiased home insurance recommendations, they can help you reap the benefits of smart home devices and discover the ideal insurance coverage in no time at all.

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About The Author
Ryan Hanley
Ryan Hanley is the Vice President of Marketing at and the Managing Editor of Agency Nation. He is also a speaker, podcaster and author of the Amazon best-seller, Content Warfare. Ryan has over 10 years of insurance expertise and blogs frequently to help consumers understand complicated insurance topics.