Reducing Risk with
“Alexa, what’s today’s weather?” “Alexa, how is traffic on the highway?” “Alexa, do you detect a water leak inside the house?”
Alexa can do that! Perhaps, not yet…. but the concept is not a far-fetched as it might seem. There are smart sensors which do monitor for water leaks. And, according to a survey conducted by Nationwide Insurance, only 7% of survey respondents use such technology. Contrast that figure with the 66% rate of smart device penetration into households.
What is very interesting is most homeowners are unaware that smart technology can actually save money on insurance, by reducing the risk of costly home problems.
Smart Technology Price Barriers
Much of the smart tech inside homes of today is intended to increase security and make homes more energy efficient. The most common smart tech is video doorbells, home security cameras, and thermostats. The smart home product sector is expected to grow 25% over the next five years.
However, many homeowners are reluctant to install a device due to cost. Other reasons include a lack of knowledge on what sensors and tech is available as well as concerns about security. The fear of technology that is always “on” (listening for the keywords “Alexa” or “Hey Google” especially after seeing news stories of hackers able to reprogram home video cameras.
While cost is still an objection, over 60% of consumers have said they would be interested in installing smart devices as long as they helped lower premiums, according to the Nationwide survey.
Preventing Water Loss Incidents
Alexa may not be able to lower premiums, but smart sensors can detect water-loss incidents caused by pipe, fixture, or water heater leaks and have the most potential to reduce homeowners’ risks. Interestingly enough, 27% of survey respondents were aware of products that monitor for water flow and leaks. Less than 25% of respondents reported being aware of the availability of smart tech which can close water valves, in the event of a leak.
As average water damage or pipes freezing can cause more than $10,000 in damage, these sensors can provide a layer of protection, especially in winter months when many folks are vacationing away from home. Many homeowners take precautions to secure the home from theft and fire and typically don’t consider water damage risks until it has become a problem.
Insurers are aware of the cost impact of water losses and will offer discounts to homeowners to take appropriate precautions ahead of time.
Check with your insurance agent and see how increasing your home intelligence might save you money on premiums and increase your peace of mind.
Trust me: coming home from vacation to a waterfall on your inside staircase is not a pleasant end to a great vacation.
Aspen Insurance Agency is a family-run business in Denver, CO servicing clients nationwide. We work with multiple insurance carriers to offer our customers a wide variety of risk reduction coverage at the lowest possible cost. We offer a wide range of personal, auto insurance, commercial and professional insurance to residential and commercial insurance customers enabling the cheapest rates available. Call to speak to one of our insurance professionals and see how painless insurance shopping can be.