Skip to main content

Can your smart home save you money on homeowners insurance?

Smart home devices provide more than just convenient assistance — they also help us complete tasks more efficiently and protect our homes. And now, they may actually be able to save you money on your homeowner’s insurance.

Homeowners insurance protects or aids you if an incident happens. Yet the best days are when nothing goes wrong, and life is easy for everyone. Smart home devices can be your first line of defense against things that could cause your home harm.

Recommended Videos

Of course, smart home accessories can turn devices on and off in your home, remind you of appointments, and clean your carpet when you don’t want to, but they can also protect you. For example, accessories such as water leak sensors are useful if your home has old pipes, smart security products can inform you if a door is broken into or a window is smashed, and smart thermostats can help shut off the air if it detects fire or smoke. These kinds of safeguards are some of the things that homeowner insurance companies love.

Which smart home products can save you money?

A person using their phone to unlock the Sesame Smart Lock on their door.
Image used with permission by copyright holder

Your HomePod or Roomba aren’t going to get you an insurance discount. The most popular types of devices that help you save money include alarm and security systems (including cameras and doorbells), fire and smoke detectors, and electronic water or gas shutoff systems. Getting that Nest Doorbell that pairs with the Nest Indoor/Outdoor cameras and Nest Thermostat may save you more money than you paid for the smart home system over time. Remember, though, some insurance companies only offer discounts for certain brands, so do your research before you buy.

Although not the most exciting, these safety devices will help improve your life and, possibly, your wallet. Imagine that you live in an older house, and one of your water pipes begins to leak. You could have a water leak sensor that alerts your phone of the leak, allowing you to spring into action quickly, or the system may be advanced enough to shut off your water automatically. Looking over that scenario, you saved money by not having to file a claim, not hiring people to drain the water or repair the room, and a host of other possibilities.

How much can you save on insurance with smart home devices?

Lorex Smart Home Security Center with Two 1080P Cameras product image.
Image used with permission by copyright holder

You won’t be able to save a large lump sum of money, and as noted, not all devices are applicable. On average, you can expect to save 105 to 15% of your annual fee on homeowners insurance with the right products. Some types of savings to look for include a reduction of your monthly rate, reduced cost of smart devices, or sometimes a decrease in professional monitoring services. Insurance companies may partner with device manufacturers and that can sometimes save you even more.

Insurers such as Amica, Farmers, Hippo, and Lemonade generally will offer some form of discount. Some companies will reduce your monthly fee or other payments if you have compliant smart home devices. Ask your insurer or any prospective company if they provide some discount for a particular smart device.

So, should you go buy a ton of smart home devices to save money? The short answer is no, at least not if the end goal is to save money. When looking at the annual fee savings for an average household paying the median homeowners fee ($1,650), you’re saving about $200 per year. Smart home devices will cost a lot of money upfront, and some have additional backend cloud or monitoring fees. First, look at your living situation and buy the devices that most apply to your needs. For example, if you live in a newer home, you may not need a water leak sensor like that old Victorian house does down the street.

If you’re not getting a discount now with your homeowner’s insurance, call your insurer and see if they offer discounts for the smart home products you have, and ask what brands and devices qualify. Who knows, the next Alexa-enabled video doorbell you buy may be worth $200 in your wallet.

Keyan Riddick
Former Digital Trends Contributor
Keyan Riddick is a freelance writer based in the mountains on North Carolina. When he isn't writing you can find him behind…
This smart display alternative can now use AI to plan all your meals
The Skylight Cal Max installed on a wall.

Skylight is a smart home company that produces a variety of smart display alternatives, such as the Skylight Cal Max. These serve as a central hub for all your daily planning -- they’re primarily used as a digital calendar, but you can also use them to track chores, make lists, or meal prep. That last aspect just became much more exciting, as Skylight is officially introducing Sidekick, an AI-powered assistant that can plan all your meals in just a few minutes.

Sidekick is a new AI feature for Skylight devices. It’s capable of generating personalized recipes based on your budget, family size, and dietary restrictions, and it’ll even create a shopping list and load up step-by-step cooking instructions. Skylight hopes the new feature will save families 10 hours every month, as they’ll no longer need to worry about the logistics surrounding meal prep.

Read more
Apple gearing up for ‘first foray into smart home camera market’
Apple Fifth Avenue Store Apple Logo

Apple is planning to release a smart home security camera in 2026, according to Ming-Chi Kuo, a prominent figure with contacts in Apple’s supply chain in Asia.

“Apple is making its first foray into the smart home IP camera market, with mass production scheduled for 2026, targeting annual shipments in the tens of millions,” Kuo wrote in an online post shared on Monday, adding that Chinese tech firm GoerTek will be the exclusive assembly supplier.

Read more
This tiny smart puck can control your smart home without the need for mobile apps
The Linxura with four buttons on the screen.

My home is overrun with smart gadgets, and the main way I interact with them is through my smartphone. This is usually a robust way to control my gadgets, as my phone is never far from my side -- whether I need to toggle my smart lights, adjust my air purifier, or change the thermostat, my smartphone lets me tackle most of these tasks in a matter of seconds. However, having a physical button to perform these actions would certainly be preferred. Instead of diving into apps and wading through menus and automations, a physical controller would perform actions at the press of a button, much like a remote works for a TV.

That’s the idea behind the Linxura Smart Controller -- a disc-shaped object that lets you perform a long list of actions at the press of a button. After syncing it with your smart devices, you’ll no longer need your companion mobile apps. Just tap or double-tap its outer ring, and you can toggle hundreds of different products. I’ve been testing it out in my home, and while I think it’s a fun device, it falls short in a few areas. But if you’re craving a physical remote for your smart home, there’s good reason to take a closer look at the innovative gadget.
Simple, but tedious setup

Read more