Insurance-provided discounts for a standard home alarm system have long been the norm, but is banking on more recent security advancements worth it? The array of smart home sensors with everything from pre-leak and early leak detection, to advanced security and fire detection is steadily increasing and insurers stand to benefit provided they take advantage of the trend. With issues such as leaks and break-ins, every second counts with regards to the size of the eventual claim. While moisture and leak detectors aren’t new, sensors with wifi connectivity and alerts sent to a homeowner’s smartphone are relatively recent additions that can help reduce insurance risk. Newer, younger homeowners, such as millennials, may find more peace of mind in utilizing smart home features as opposed to traditional measures. Sensor technology provides a net benefit and should be encouraged, if not rewarded with the aim of risk reduction.
Home Inspection As A Teaching Tool
First-time homeowners may simply not be aware of the extent of their insurance coverage or other factors regarding their policy beyond a general idea. An in-person insurance inspection can then serve as a valuable teaching tool for property owners about risk reduction and coverage. It opens up the conversation for insurance carriers to be able to offer increased coverage levels when insureds are truly informed about what is and is not protected. The more knowledgeable the insured about ways to reduce risk to their own property, the better the outcome with regards to risk.
The Future Of IoT And Insurance Risk
The worst decision an insurance carrier can make in this day and age is remaining stagnant in this time of rapid change. We live in a connected, technology-focused society and insureds expect this level of interaction from nearly all important service providers. In the near future, insurers who utilize data from connected smart homes and provide benefits, features, and solutions to customers along with dynamic policies based on individual patterns may well be the leaders in the industry. While we are not quite there yet on a large scale, being left behind is no longer an option in an industry fighting over customer attention and satisfaction.
Insurance Risk Services has over 40 years of partnership and experience with property and casualty insurance carriers. We provide thorough in-person property inspections with guarantees on quality. Contact us to learn more about our home inspection and insurance risk mitigation services.