Ways IoT devices are changing home insurance

The Internet of Things (IoT) has crashed into the world with full force. Every piece of technology that works off this idea can run and communicate without the interference of humans. It is a network made of “things” that have sensors, software, and other various forms of technology that allow them to send information back and forth amongst themselves.

IoT has been in the auto insurance industry for a few years, now. As time rolls on the benefits have been proven and smart devices are starting to be used more often within home insurance policies. There are a few ways that IoT use has changed the way we live in our homes, as well as having the following benefits for home insurance carriers.

  1. Claims-The number of claims will be reduced as more homeowners shift over to the smart devices that work with the systems. Sensors can be strategically placed to warn of fires, leaking water pipes, CO2 emissions, and even gas or propane fumes. The devices that are connected to a monitoring service will notify emergency responders of the situation. Some IoT devices can even prevent excessive damages by turning off the water and turning on the fire suppression system.
  2. Pricing accuracy-Similar to the data that can be collected in automobiles, the sensors that are installed within the house can create a safer home by using advanced technologies such as doorbell cameras, mounted house cameras, smart leak detection devices, and various other gadgets that can decrease the costs of the premiums because the house is more secure. Being more secure means that claims will not be as common, which in turn can reduce the cost of your premiums due to discounts. Some as much as 25% off. Check with your home content insurance provider to find out what they can offer you.
  3. Gather data-This can border on invasion of privacy issues, but sensors and devices can not only help secure the home, but some can monitor and record consumer behaviors. It is claimed that this is strictly to learn more about habits and lifestyles of the consumers that they deal with. It helps the insurance companies offer fair premium costs that are gathered from data that has been collected and ran through a series of programs to gain accurate assumptions.
  4. Customer Relationships-When it comes to the home insurance industry it has been extremely hard in the past for the agent to make a tight bond with the consumer. The only way that they had to keep customers, and gain them, was to lower their premium costs below their competitors. With smart devices attached to their customers homes they become more attached to the client, and the client becomes more attached to them.
  5. Community help-In various areas around the world houses that have had smart devices watching their properties have also helped their neighbors and communities. When floods and massive storms rip through the area sometimes claims adjusters can take their time paying out on the filed claims. When a home in the area is connected to smart devices the insurance companies cannot refute anything that happened. This not only guarantees that the claim be accepted, but it helps get the payout into the hands of the consumer quicker.

IoT devices have gotten a footing in almost every industry, in one way or another. It is the way of the future, and like it or not, the future will be full of houses that are completely converted over to smart homes and smart devices. New homes being built in higher society areas have already started to come designed with the technology installed. The benefit of it all is that crimes will not only go down, but the cost of home insurance premiums will drop substantially, in theory anyway.