Smart Home Devices: How They Protect Your Home and Lower Insurance Costs

Smart home technology is no longer just about convenience—it’s about home safety, insurance savings, and risk prevention. The Internet of Things (IoT) has empowered homeowners with innovative tools to detect risks, prevent damage, and alert them in real time.

According to industry studies, homes equipped with smart devices like leak sensors, fire detectors, and security systems experience fewer homeowners insurance claims. Some insurance companies even offer smart home insurance discounts to homeowners who install devices like leak detection sensors, smart smoke detectors, and smart security systems.

How Do Smart Devices Protect Against Home Insurance Claims?

Fire Alerts: Smart Smoke Detectors that Work Anywhere

Traditional smoke detectors are life-saving, but they only help if someone is home to hear the alarm. What happens if you’re away at work or on vacation?

Smart fire detectors connect to Wi-Fi and send instant alerts to your smartphone. Faster awareness means a faster response from you and local firefighters, which can dramatically reduce damage and potentially save lives. Smart smoke detectors not only save lives—they can also reduce homeowners insurance claims and may even qualify you for smart home insurance discounts.

Water Alerts: Catch Leaks Before They Flood Your Home

Water damage is one of the most common and expensive homeowners insurance claims, with the average loss exceeding $11,000. A burst pipe, leaking washing machine, or unnoticed drip can cost thousands in repairs.

Smart leak-detection sensors provide real-time alerts the moment water is detected. Some models even connect to automatic shut-off valves, stopping the flow before it becomes a full-blown disaster.

Tip: Place sensors near sinks, water heaters, and laundry appliances for maximum coverage.

_{Source: Insurance Information Institute (III.org)}

Burglar Alerts: Smarter Security at Every Entry

Smart technology has redefined home security, making it easier and more affordable to keep intruders out —and giving you the power to manage it all from your phone:

• Video Surveillance: Monitor your property in real time from anywhere
• Smart Lighting: Use timed or motion-activated lights to deter burglars
• Smart Door Locks: Control who enters your home and when

Wireless security systems mean no messy installation, and you can scale up or down depending on your home’s needs.

Tip: Many insurance carriers offer discounts for professionally monitored security systems.

Should Homeowners with Smart Devices Worry About Data Privacy?

Smart home devices make life safer and easier—but they also collect and transmit data. From your daily routines to security footage, sensitive information could be at risk if not properly protected.

The good news: with a few proactive steps, you can enjoy the benefits of smart technology without compromising privacy.

Tips for Protecting Your Smart Home Data:

• Strong Passwords: Use strong, unique passwords for each device (avoid reusing your Wi-Fi password)
• Two-Factor Authentication: When available add a second step like a text code, authenticator app, or fingerprint
• Software Updates: Keep devices updated with the latest software patches to close security gaps
• Secure Wi-Fi: Secure your Wi-Fi network with strong encryption and a hidden SSID
• Data Sharing: Review app permissions and limit unnecessary access.

When homeowners take these precautions, smart devices can remain powerful tools for safety—without creating unnecessary digital risks.

Save Money with Smart Tech Discounts

Smart home technology isn’t just about convenience—it’s a growing force in home safety and cost savings. At Forward Insurance we understand the evolving landscape of smart home technology and its impact on insurance. Contact us today to discuss how you can maximize your insurance savings with smart home devices while ensuring the safety and security of your home.