Insurance for smart homes

What is smart home insurance? 

Smart home insurance refers to any policy that takes into consideration the smart technology in your house. 

While not all providers offer this type of cover, some may even offer lower premiums for homes which have certain smart devices installed. 

This is because, when it comes to insurance policies, the amount you pay depends on the risk you present to your insurer. Having extra security measures in place, such as smart door locks or security cameras, should reduce the chances of you needing to claim - making you less of a risk to insurers. 

However, all providers are different. So, it’s important to check your policy terms and conditions to see whether having smart devices installed in your home will affect your premium.

What are smart homes? 

Any home that’s been set up with a connected network of digital devices can be considered ‘smart’. 

The type of technology in smart homes can vary, ranging from smart door locks and security cameras to smart lighting, thermostats, smoke detectors, and virtual assistants. 

These devices will be linked to each other through the Internet of Things (IoT). And, in many cases, they can be controlled via an app on a single device - usually a phone or tablet. 

Having a smart setup in your home also allows you to automate certain daily routines. For example, turning on the heating when you're a certain distance away from home. Or, dimming the lights at a particular time in the evening.

Types of smart home insurance cover

While smart home insurance isn’t standard on most traditional insurance policies, there are options out there. Some providers now offer a ‘prevention first, insurance just in case’ approach to cover, which focuses on preventing issues before they escalate.

When you take out this type of smart insurance policy, you’ll typically be provided with a range of smart security devices, which you can install in your home in order to protect it. This usually includes an HD camera, as well as flood, smoke, door and motion sensors. 

These policies also often come with a connected app, which sends you real-time alerts if any of the smart devices in your home detect leaks, fires or intruders. In many cases, the service will also allow you to arrange for tradespeople to come out to your home and fix the problem immediately. 

The idea is that if you were to have a problem with a fire or freezing pipes, the earlier you know about the problem and take steps to fix it, the lower your repair bill and insurance claim will be.

What devices are used in smart homes?

There's no limit to what type of smart device you can use in your home - and new technologies are being introduced all the time. However, some of the most popular smart devices include:

• Home security systems: examples include motion detectors and cameras which can be monitored from your phone, and smoke detectors.
• Smart doorbells: You’ll be able to see and speak to whoever's at your doorstep, from anywhere through your phone.
• Door locks: Instead of a physical key and classic lock, this smart version is controlled by your fingerprint or a keycode you can enter on a keypad or via an app.
• Water sensors: These can be used to detect leaks and alert you if you’re at risk of frozen pipes.
• Light switches/bulbs: allows you to control the lighting in your house from your device.
• Thermostats: Programme the heating to turn on or off, either based on the time of day or your distance away from your home.

Core advantages of smart homes

• Convenience: For many people the main benefit is convenience, with devices being used to save time and automate everyday processes. 
• Safety: Smoke and leak detectors alert you to risks early on before the problem escalates.
• Security: Having smart technology can be a deterrent to potential burglars, too. Having integrated home security systems and door cameras as well as a burglar alarm signal that your home is well protected - reducing the chances of a successful break-in. You can also take extra security measures if you have smart lighting in your home. By remotely turning the lights off and on at certain times, you can make your house appear occupied when you’re away.

Do smart home systems affect my home insurance?

Having smart technology can sometimes make your home insurance cheaper. This is because it reduces the risk of break-ins, water leaks and burst pipes. 

However, it’s worth noting that smart devices can be expensive and having them in your home could affect your contents insurance. If your policy has a single-item limit, you may need to declare certain devices separately as high-value items.