Smart home technology is on the rise, and it’s about to unlock new benefits for both homeowners and insurers. According to a study from GfK Research, “the majority (58%) of consumers say the smart home is likely to change their lives in the next few years.”
To homeowners, life change from smart home technology could mean convenience from voice control, temperature control, and lighting. At SmartInsure, we see it as a new wave of predictive and preventative home protection that is the first step to fostering an experience driven relationship that insurance providers can bring to homeowners through technology.
There is $12.6 billion in water damage annually, as recently reported by the Insurance Information Institute. This is a huge cost for insurers, and it also puts a massive burden on homeowners as they deal with the damage, aggravation, and repairs, not to mention the potential loss of irreplaceable personal items like photos and heirlooms. Weather-related water damage often can’t be prevented, but common water damage from appliance discharge, plumbing issues, burst pipes, etc. can be mitigated with IoT technology in the home.
There are many sensors available to help homeowners nip water damage in the bud with early detection, and “93 percent of water damage claims could be avoided with smart water-leak detection and shut-off system.” Many companies such as Fibaro, HomeSeer, ForetrezZ, and Everspring make sensors that will send a notification to the homeowner’s smart home when water is detected. Instead of coming home to a flooded basement, homeowners can act on a notification from their smartphone when water is detected to help mitigate catastrophic flooding and damage. Or, they could intervene immediately using a water shut off valve to cut off the water line to their home from their smartphone.
With this smart technology, insurers can help homeowners protect their homes to reduce damage by supporting the use of smart home devices by moving towards a new type of insurance combining coverage, products, and service. An insurance program that includes a cooperative policy with smart home product and installation will give homeowners new benefits for adding smart technology to protect their property, all while helping to reduce damage and the resulting losses, huge financial costs, and aggravation.
This week, I’m attending Connected Insurance in Chicago, and will discuss the details of how insurtech will become realized on a panel, “Proactive, Tailored, Lower Cost: Providing the New Home Insurance.” I’ll discuss what these opportunities mean for future insurance strategies, and how the rise of IoT can help create a new type of insurance customer relationship. Reach out if you’d like to connect at the show or learn more about SmartInsure at mysmartinsure.com.