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Here’s Why Insurance Companies Like Smart Home Devices

Insurance Companies Like Smart Home Devices

Here’s Why Insurance Companies Like Smart Home Devices

Insurance Companies and Smart Homes

If you think about it, top 5 best affordable home insurers companies and smart home devices seem like an unusual combination. However, if you look closely, there are many ways why insurance companies start marketing their services with these devices.

The use of technological advances such as devices with artificial intelligence (A.I.) is becoming a common occurrence in this generation. These A.I. are integrated into smart home devices in order for it to be easily controlled. A.I.s are even ingrained in smartphones which would make home monitoring possible from distances.

For example, you received a notification on your smartphone stating that your automated lock is being tampered with. While you’re away from home, your smoke detector automatically activated the sprinklers around your house to prevent the fire from escalating. It’s all about the home protection and for homeowner insurance companies, this means fewer losses to cover.

Smart homes’ greatest advantage lies in its ability to prevent the structure from physical damages. These may result from fires, burglary, weather-related problems, and many more. Thus, safety and prevention provided by modern technology plus an insured house would become a great combination. It became a prime opportunity for insurance companies to get involved in. The combination would entice buyers who are looking for insurance coverages. It’s a win-win for both insurance companies and smart home-devices manufacturers.

State Farm

One insurance giant is now upping its’ game because it’s utilizing the said marketing strategy. State Farm offers discounts on insurance coverages for homeowners who installed automated smart devices in their homes.

According to their spokesperson, smart monitors and automated systems are beneficial in the prevention of losses. This means that insurance companies would benefit greatly together with their customers. It would become a two-way street of benefits.

Rachael Risinger, State Farm’s spokesperson, stated that monitoring products help and empower policyholders to control their basic home expenses while protecting their possessions.

Nowadays, there is a higher demand for smart home devices. Insurance companies play a major role in upping the sales of these products.

Challenges in Getting These Bundles

Many customers are still wary about having their smart home devices be connected to a homeowner’s insurance provider. The topmost concern would be the breach in privacy or the disclosure of personal data to other people.

While smart home devices provide the best, promising services a homeowner can avail, there is a major setback. Monitoring systems would send data to companies and customer’s daily lives in their homes would become a public study for companies.


Overall, smart homes are beneficial for the insured and the insurers. Since millennial customers would prefer the best money-saving home protection available in the market, this industry would keep growing in the next years to come.

While the smart home and the discounted insurance coverage pair would seem like a perfect combination and has all the advantages, it would still include a disadvantage. If you’re worried about your personal data and home privacy being utilized by companies, better look for an alternative that would provide you with a better offer.

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