How can smart home devices save you money?

Technology has become an essential part of modern life, so it's no surprise that we use it throughout our home. In fact, the global smart home market is forecasted to grow to over 497.3 million active users worldwide by 2025.

But did you know there's more to smart home tech than cool features and convenience? These devices can help increase your home's efficiency and enhance its security. Plus, there are programs that may even help save you money. We'll explain how.

What is smart home technology?

Smart home technology refers to appliances and devices that can be controlled remotely using an internet-connected device, such as a tablet, smartphone or gaming console. Available smart home devices include speakers, televisions, thermostats, locks, lighting, security cameras — even refrigerators and ovens.

A connected home — also called a smart home — has several interlinked smart home devices. Users can control them by voice or mobile app, or even set up a home automation system with schedules for lighting changes, climate control and more.

The benefits of a connected home

The benefits of smart home technology are powerful. First, it's convenient. You don't have to lift a finger to vacuum the floor. You can check to see who's knocking at the door before answering it. When you need to add an item to your grocery list, you don't have to stop what you're doing or risk forgetting it.

A second benefit is the peace of mind that comes when you can keep your home and family more secure, even when you're at work or away on vacation. Whether it's viewing live security footage, or making sure the garage door is shut, smart home devices can be helpful and convenient.

And third, some of these devices are just fun to use.

But you may not be aware of this last benefit: Some smart home device programs can also help you save money on your home insurance.

Insurance discounts for smart home devices

Why would an insurance company care about smart home devices? It's primarily because they can help prevent property issues like theft, fire and water damage. For instance, security devices like cameras and alarm systems can be a major deterrent for would-be burglars.

They can also reduce the amount of damage that occurs. Let's say you have a smart smoke detector that automatically alerts the fire department. Firefighters can then respond faster and prevent further damage to your home and possessions.

Without these devices, insurance companies would have to repair and replace damaged or stolen property with a covered claim. That's why many providers offer discounts for customers who use certain smart home devices.

While most discounts are associated with home security devices, every insurer will have different policies and may offer discounts for other types of devices as well.

Earn discounts and avoid claims with smart home devices.

Every insurance company is different, and not all devices will qualify for a discount with every provider. Check with your provider for specific requirements on your policy.

But even if your insurance doesn't offer a discount for certain devices, they may still be able to help you avoid or reduce home insurance claims. Here are a few devices to consider:

Video doorbell

Doorbell cameras allow you to see who's at the door, whether you're inside your home or not. Most of these devices will also offer motion detection, so you can receive an alert and start recording when someone approaches your door. Some also enable two-way talk through a built-in microphone and speaker. They're designed to deter thieves and so-called porch pirates.

Indoor and outdoor security cameras

Monitor your home inside and out with motion-activated recording, two-way talk and alerts. These devices can also help to prevent theft, but may also alert you to a fire, burst pipe or other hazard when you're out of the house.

Door and window sensors

Get an alert when a door or window is opened. Some systems will allow you to set a schedule so that alarms can be silenced or minimized when desired but stay loud in the middle of the night or when you're out of the house.

Flood and temperature sensors

These sensors can alert you to significant temperature fluctuations and help prevent water damage or frozen pipes when placed in your attic, basement, laundry room, vacation home and more.

Locks

Control access to your home remotely using a smart lock. These devices can be controlled with mobile apps, keypads and even fingerprint scanners. You don't have to worry about hiding a key where a potential intruder could find it.

Smoke and carbon monoxide detectors

Smoke detectors and carbon monoxide alarms are a safety necessity. When you choose a smart version of these devices, you can access new features, like smartphone alerts and automatic 911 calling.

Water or gas shutoff

With smart devices, you can quickly turn off your water or gas when necessary, no matter where you are.

Electrical hazard detector

These devices detect early warning signs of electrical problems in your home's wiring so you can address them before they cause an electrical fire.

Garage controllers

An open garage can be an open invitation to would-be burglars — especially if there are no cars parked nearby. With a connected garage door opener, you can make sure everything is closed when it should be.

Plugs

Many home fires have happened because someone left a space heater or curling iron turned on after they left the house. Smart plugs can help you make sure these devices are turned off.

Lighting

With smart lighting, you can control lights remotely or set them to turn on and off automatically to make it look like someone is in the house when you're out of town.

Thermostat

Control the temperature of your home remotely to prevent pipes from freezing. Some smart thermostats will also work along with smart smoke alarms, since a draft of air can cause flames to grow larger.

Smart speaker

In addition to allowing you to control other devices by voice command, some smart speakers can detect the sound of smoke alarms, carbon monoxide alarms or glass breaking and send an alert to your smartphone.

Individually, any of these devices may help you avoid expensive insurance claims. Combining several in a connected home may be even more beneficial.

How much can I save with a connected home?

Most smart home insurance discounts will typically range from 5% to 20% off your premium, but this can vary based on the devices you have, as well as how other risks to your home are weighted.

For example, if you live in an area that's susceptible to hurricanes or wildfires, those risks may account for a much larger share of your overall premium. Whether you live in a risky area or not, discounts for smart-home devices should be the same. However, homes in less-risky areas may see the effect of the smart home discount more clearly than areas that have higher risks.

What types of discounts are available?

Many insurance companies offer discounts for connected homes, but that's not the only way you can save money with home automation.

Some insurers partner with security providers to offer discounts on smart home security devices, installation services and even monthly monitoring fees.

For example, in partnership with ADT home security systems, USAA members can save up to 15% on self-installed systems and get 10% off monthly monitoring — plus you may be eligible for a discount on your homeowners insurance premiums.

The USAA Connected Home program^{See note1} can also help you save on your USAA homeowners insurance when you enroll in the program and have at least two water leak detectors connected.

Protect your home, protect your finances.

Saving money may not be the top reason you choose to purchase a smart home device but you can still take advantage of many benefits. From premium discounts to preventing property damage, there are many ways that smart home devices may help protect your finances — and your home.