Smart home insurance discounts: which devices count and what to ask
Updated
Some insurers credit leak sensors, shutoff valves, smoke alarms and monitored alarms; others do not. Learn which devices tend to count, what proof to bring and how to ask your agent.
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Why insurers care about some devices
Insurers look at the losses that cost them most. According to the Insurance Information Institute, water damage and freezing produced about 1.5 claims per 100 insured homes per year over 2019–2023, with an average claim of roughly $15,400, and accounted for 22.6% of homeowners losses in 2023, the second largest cause after wind and hail. Theft is rarer: about 0.12 claims per 100 homes and an average of roughly $5,500. The EPA adds a measure of how common hidden leaks are: nine percent of homes have leaks that waste 50 gallons or more per day. That is why leak detection is the smart-home category insurers talk about most.
Devices that sometimes count
| Device | Risk it addresses | What insurers may ask |
|---|---|---|
| Water leak sensors with alerts | Slow leaks at water heater, washer, sinks | Whether it alerts you remotely, or only sounds locally |
| Automatic water shutoff valve | Burst pipe or supply line while you are away | Installed by a licensed plumber? Model name and receipt |
| Monitored burglar alarm | Burglary, vandalism | A monitoring certificate from a central station |
| Monitored smoke and heat alarms | Fire | Proof of monitoring, interconnected alarms on each level |
| Freeze or temperature sensors | Frozen pipes in vacant or seasonal homes | Often a requirement for vacant property clauses |
| Smart smoke and CO alarms | Fire, carbon monoxide | Usually no discount by themselves; some policies and local rules expect working alarms |
| Deadbolts and smart locks | Break-in | Often a basic expectation rather than a discount |
This table describes what insurers sometimes consider. It is not a promise that your insurer does. Unmonitored systems often count for less than monitored ones; see DIY vs professional monitoring.
How to ask: a short script
- Call your agent or the insurer’s customer service line and ask: “Do you offer premium credits or programs for water leak detection, automatic shutoff valves, smoke or burglar alarms?”
- Ask what qualifies. Does the device need monitoring, professional installation or a specific brand or certification?
- Ask what documentation you must provide: receipt, photos of the installed device, a monitoring certificate, or an installer’s invoice.
- Ask when the credit applies: immediately, at renewal, or only after a form is filed.
- Ask whether data is shared. Some programs ask you to connect a device account so the insurer can see alerts or status. Read what they collect and how long they keep it. The FTC’s device-security advice applies: unique passwords, two-factor authentication, updates.
- Get the answer in writing, by email or a policy endorsement.
Renters and condo owners
Renters insurance is a different product and its discounts, if any, are usually small and rare. The III reports the average renters premium at $171 in 2022. If you rent, ask whether any device credits exist before spending money to chase them. Your landlord’s or HOA’s master policy usually insures the building; your own coverage handles your belongings and liability. Check which policy applies to a leak that starts in your unit.
What the devices will not change
- Policy exclusions. Policies commonly distinguish sudden and accidental water discharge from long-term seepage or neglected maintenance; read yours. A sensor can help you catch a leak early, but it does not change what the policy covers.
- Maintenance duties. After a loss, you may need to take reasonable steps to limit further damage, such as shutting off water. A shutoff valve can help here.
- Deductible. A device that helps you avoid a claim saves your deductible and the hassle even when it saves nothing on the premium.
Document everything
Keep a folder with receipts, photos of each device in place, the installation date, the monitoring certificate and a copy of any insurer emails. Test the devices twice a year and note the date. If a claim happens, this record shows what was protected. For the devices themselves, see the water leak protection kit and the vacation home monitoring kit.
Shop by need
Home with older plumbing or a finished basement
What to look for: leak sensors at water heater, washer and sink, automatic shutoff actuator that fits your main valve, phone alerts with a backup battery
Typical price: $60–$300
See options on AmazonWanting a documented monitored alarm
What to look for: system that can be monitored by a central station, cellular backup, a certificate you can send to your insurer
Typical price: $150–$500
See options on AmazonVacant or seasonal home
What to look for: temperature sensors with freeze alerts, power-loss alert, leak sensors on every floor
Typical price: $15–$40
See options on AmazonFrequently asked questions
Do smart home devices lower homeowners insurance?
Sometimes. Some insurers offer credits or programs for leak detection, shutoff valves or monitored alarms, but eligibility and amounts vary. Ask your insurer before buying and get the rules in writing.
Which smart devices do insurers care about most?
Water leak detection and automatic shutoff valves tend to get attention because water damage claims are frequent and costly. Monitored burglar and smoke alarms are also commonly named.
Does a DIY security system count for a discount?
It depends on the insurer. Many credit only a monitored alarm with a certificate from the central station. Ask whether self-monitored systems qualify.
Do I have to tell my insurer about smart devices?
Not necessarily, but if a credit exists you must usually apply for it. Review your policy for any condition about vacant properties or protective devices and ask your agent if unsure.