How is Tech Impacting Home Insurance?

Technology is constantly evolving, with new and exciting developments emerging all the time. When it comes to technological features within the home, new systems are modernized not only to enhance our convenience and comfort but to ensure our safety and protect our property from damage. It should come as no surprise therefore that modernizing your home systems can have a positive impact on your homeowner insurance. Home insurance providers will often reward their clients for their extra protective measures by lowering their premiums or adding extra benefits.

Upgraded electrical and plumbing systems that adhere to the most up-to-date safety regulations and energy efficiency targets are just some modernisation works that can help to lower how much you’re paying on your home insurance policy. However, the modern household is going further than that when it comes to tech gadgets – the use of the internet and smart technology is no longer merely for the workplace, but has entered our living environment also. So, how exactly is tech impacting home insurance?

Added security

Anything that improves the security of your house is bound to have a positive effect on your home insurance. The last few years has seen an increase in demand for home safety devices, such as security cameras. This demand has in turn been met with tech companies developing systems that provide top-notch home security measures that utilize smart technology.  

Smart doorbells are connected to the internet and allow you to see, and even communicate, with anyone who comes to your door. Using sensors, the doorbell will alert you to a visitor via your smartphone or another computerized device, allowing you to view and speak to the person in real-time.

Another security tech system that’s emerged in recent years is the smart lock or smart deadbolt. Designed to protect against home invasions and thefts, the smart deadbolt is connected to your home WiFi network, enabling you to control the locking system on your door from your smartphone. Smart deadbolts come in different forms – some require a whole new lock system replacement throughout your home, while others can be fitted over your existing locks.

Smart security devices not only make people feel safer in their homes, but they also serve as deterrents for would-be criminals, thereby minimizing the risk of property theft or damage. The added layer of protection given to your property and valuables by these tech systems can help decrease how much you’re paying your home insurance company.

Fire protection

Fire safety and prevention should be among your top priorities at home and, thankfully, most new builds will have smoke and carbon monoxide detectors fitted. In fact, in many places, the installation of such devices is now a legal requirement. Furthermore, a lot of home insurance providers will not offer protection to a property unless it has such detector systems in place and may even void a policy if they fail to maintain their device.

Just like many other technological systems within the home, these detectors have undergone modern upgrades that increase safety and help prevent damage to property. It’s therefore unsurprising to learn that many home insurers will reward customers who have these upgraded smart systems installed within their property.

One well-known modern development in detector alarms is interconnected systems, where the setting off of one alarm triggers all of the other devices in the building to also go off. However, these detectors have also undergone a more recent development in the use of smart technology.  The idea of a smart smoke, heat, or carbon monoxide detector is that it doesn’t just trigger an alarm within your home, it’ll also send an alert to your smartphone. 

This means that if you are not at home when a fire breaks out, you can act quickly and alert the emergency services sooner rather than later. A faster response will minimize the risk of damage to your property and so owning such a device can only help to lower your home insurance.

It’s worth noting, however, that your home insurance is likely to be affected if your smart detectors are damaged or improperly installed. Insurers can invalidate your claim if a fire does occur within your home and it’s found that your smoke alarm wasn’t working properly. It’s therefore vital that any detector alarm systems are properly installed, adhere to the current safety requirements for your area, and are regularly tested for faults. Failing to do so could not only cost you on your home insurance but could cost you your life.

Water damage prevention

Better awareness of climate change and other environmental issues has urged home tech companies to develop more ‘green’ systems to be used within our living spaces. Many of these new technologies aim to maximize your home’s energy output, saving you money on your utility bills and helping to save the planet. However, some new technologies affecting your energy bills also help to prevent damage to your property and thus look good to home insurers.

A burst pipe is one of the most costly disasters that can impact the home, therefore any technology that prevents such a scenario should lower how much you’re paying on home insurance.

Smart water meters enable you to track how much water you’re using within your home, helping you to minimize your water consumption and hence your bills. However, the latest models of these devices are much more than mere usage trackers – they can prevent major water damage to your property by detecting leaks and even temporarily repairing them. Smart water leak detectors contain a sensor that’s connected to your smartphone or another computerized device. When the sensor detects leakages in the system or excess moisture, it sends an alert to your mobile device, allowing you to act fast and deal with the issue immediately. Even more impressive, newer smart water leak detectors often have an automatic system that’s programmed to stop the flow of the water until the leakage is fixed.


Recent technological inventions have not only allowed us to enjoy a more comfortable and convenient way of living, but they have also boosted our safety and security, reduced the chances of property damage by preventing fires, and water leaks, helped to deter criminals, and given us greater control over our own homes. With all of these benefits combined, it is unsurprising that tech impacted home insurance. 


I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin