Smart Home Devices That Lower Your Insurance Premium

Smart home devices aren't just about convenience — they can actively save you money on your homeowners insurance. Insurance companies are increasingly offering discounts for devices that reduce the risk of fire, water damage, theft, and other common claims. If you've been eyeing a smart thermostat or debating whether to install a water leak sensor, the insurance savings might tip the math in your favor.

Why Insurers Care About Smart Home Tech

Insurance is fundamentally about risk. Anything that reduces the likelihood or severity of a claim is something insurers want to encourage. Smart home devices do exactly that:

• Water leak sensors catch slow leaks before they become $10,000 water damage claims.
• Smart smoke detectors alert you (and the fire department) faster, reducing fire damage severity.
• Security systems deter burglary, which is one of the most common homeowners claims.
• Smart thermostats prevent frozen pipes by maintaining minimum temperatures during cold snaps.

From the insurer's perspective, a home with these devices is quantifiably less risky — and they're willing to share some of that reduced risk in the form of lower premiums.

Devices That Earn the Biggest Discounts

Not all smart home devices impact your insurance equally. Here are the categories that most commonly qualify for discounts:

Water Leak Detection Systems (5–10% discount) Water damage is the second most common homeowners claim, and smart leak detectors are the most impactful devices you can install from an insurance perspective. Systems like Flo by Moen, Phyn, and LeakSmart can detect leaks, alert you via smartphone, and even automatically shut off your water supply. Some insurers have partnered directly with these manufacturers to offer discounts or even provide devices at no cost.

Monitored Security Systems (5–20% discount) A professionally monitored security system — one that alerts a monitoring center when triggered — typically earns the largest discounts. DIY systems like Ring and SimpliSafe qualify with some carriers, but centrally monitored systems from providers like ADT or Vivint generally earn larger discounts. Key components that matter: door/window sensors, motion detectors, and 24/7 professional monitoring.

Smart Smoke and CO Detectors (2–5% discount) Devices like Nest Protect or First Alert Onelink go beyond basic smoke detection. They identify the type of threat (smoke vs. CO vs. steam), send smartphone alerts, and can integrate with other smart home systems to turn on lights during an emergency. Some insurers offer specific credits for smart detectors beyond what they give for basic battery-operated units.

Smart Thermostats (2–5% discount) Nest, Ecobee, and similar thermostats can prevent frozen pipes by alerting you when indoor temperatures drop below a safe threshold — even when you're away from home. This is particularly valuable for vacation homes or snowbirds. The discount is modest, but combined with energy savings, smart thermostats pay for themselves quickly.

Video Doorbells and Cameras (1–5% discount) Devices like Ring, Arlo, and Google Nest cameras deter package theft and break-ins. The footage they capture can also speed up claims processing. Discounts vary widely by carrier — some don't offer them at all, while others bundle camera credits with broader security system discounts.

How Much Can You Actually Save?

The total discount depends on your carrier, your state, and which devices you have. Here's a realistic scenario:

• Base homeowners premium: $2,000/year
• Monitored security system discount: 10% = $200 saved
• Water leak detection discount: 5% = $100 saved
• Smart smoke detectors discount: 3% = $60 saved
• Total annual savings: $360

Over five years, that's $1,800 — more than enough to cover the cost of the devices themselves. And that's before you factor in the claims you'll prevent by catching leaks early or deterring break-ins.

How to Claim Your Discounts

Most insurers don't automatically apply smart home discounts. You need to take action:

1. Tell Your Insurer: Contact your insurance company or agent and let them know what devices you've installed. Provide model numbers and proof of professional monitoring if applicable.
2. Ask What Qualifies: Each carrier has different requirements. Some only discount centrally monitored systems; others accept self-monitored devices. Ask for their complete list of qualifying devices.
3. Provide Documentation: You may need to submit receipts, photos of installed devices, or a certificate from your monitoring company.
4. Review Annually: New discount programs launch regularly. Check with your insurer each year to see if newly installed devices qualify.

Working with an independent agency like Truvo makes this easier — we know which carriers offer the best smart home discounts and can match your devices to the most favorable policy.

Devices Worth the Investment

If you're starting from scratch and want to maximize insurance savings, here's where to focus your budget:

1. Water leak detection system ($200–$500) — highest impact on insurance and claims prevention
2. Monitored security system ($15–$45/month) — biggest percentage discount
3. Smart smoke/CO detectors ($100–$150 each) — safety essential plus modest discount
4. Smart thermostat ($150–$250) — insurance discount plus energy savings

Total upfront investment: roughly $500–$1,000 plus ongoing monitoring costs. With $300–$500 in annual insurance savings plus energy savings and claims prevention, most homeowners recoup the investment within one to two years.

Conclusion

Smart home devices sit at the intersection of safety, convenience, and savings. The technology protects your home from the risks insurers worry about most — water damage, fire, and theft — and insurers reward you for reducing those risks. If you're curious about how much your smart home setup could save you, get a free quote from Truvo and we'll factor in every applicable discount.