Should Smart Home Devices Talk to Your Insurance Company?

Parks Associates research indicates that almost 60 percent of U.S. broadband households with insurance are likely to buy smart home devices with detection/prevention features and nearly 50 percent of U.S. broadband households with insurance are interested in having loss detection/prevention devices that communicate directly with their insurance company.

“Twenty to thirty percent of U.S. broadband households are very interested in receiving additional services from their insurance provider, depending on which service,” says Brad Russell, Director, Connected Home Research, Parks Associates. “Consumers appreciate the safety and security value propositions of smart home products, and these use cases align with their perceptions of the role of their insurance companies, which opens up many lucrative opportunities for new services and partnerships.”

“Vastly more homeowners have installed home security systems than home water leak detection systems,” adds Bill Loesch, CEO, LeakSentinel. “Homeowners insurance covers financial losses from fire, theft, and water leaks, but fires and robberies threaten personal safety while water leaks do not. For leak detection systems to be more widely deployed, unlike home security systems, they must be financially attractive to both homeowners and insurers.”

Consider this statistic: For the period 2010 to 2014 the average water damage and freezing claim was $7,958 according to ISO, a Verisk Analytics business and the Insurance Information Institute. A water/freeze (most sensors monitor both) could potentially save big bucks, maybe even more in the form of discounts and if the sensor communicates directly with the insurance company.

Detector manufacturers appear to be on board, as well. Roost, for example, prominently lists on its website more than a dozen partnering insurance companies.

 

Additional findings from Parks Associates

• Nearly 40% of consumers with insurance would switch insurance providers to obtain smart home products.
• 20-30% of consumers with insurance are likely to purchase a fire safety package for an up-front cost of $200-$400.
• 51% of U.S. broadband households find an IoT device that alerts them to smoke and fire highly appealing.
• 41% of U.S. broadband households find a device that alerts them to a water leak to be highly appealing.

Here are some IoT smart smoke detectors and water/freeze detectors (Note that many of these sensors require the Wi-Fi hub in to facilitate remote monitoring features; most retail for less than $100).

Smart, Connected Smoke Detectors

Nest Protect: Connect Nest Protect to your free Nest account using Wi-Fi and you can receive low-battery alerts, Heads Up and emergency alarm notifications on your smartphone or tablet. In an emergency, the What to Do feature will remind you of recommended actions and give you one-button access to an emergency phone number.

First Alert Onelink: This 3-in-1 device offers a built-in WiFi-enabled home speaker, equipped with Amazon Alexa or Google Assistant connectivity and a custom multi-colored night light.

Additionally, First Alert enters a new category with Onelink Connect, a Wi-Fi mesh tri-band solution, which delivers faster, stronger, more reliable internet throughout the home.

In the event of a fire or carbon monoxide emergency, the alarm will not only sound in your home, but also send push notifications to the your mobile device. Voice and location technology will alert you to the type of danger and its location.

Halo Smart Labs: If Halo senses a problem, a voice alert will instantly tell you what’s wrong, a ring of light illuminates and you’ll get an alert on your smartphone.

 

Smart, Connected Water Leak Detectors:

Fibaro Flood Sensor: The system will immediately inform you about any detected leaks or attempts at tampering by sending a notification to your smartphone.

A built-in temperature sensor alerts through your smart hub’s app and visually/ audibly at sensor if there is a sudden rise or fall in temperature.

A built-in temperature measurement tool allows the Fibaro Flood Sensor to control floor heating. It can be placed directly on the floor’s surface to measure warmth, while the system, which immediately adjusts the temperature to your preference.

Samsung SmartThings Water Leak Detector: You receive an immediate alert on your smartphone at the first sign of excess water; a light or siren can also be engaged to activate.

 

Delta Water Leak Detector: The unit’s conductor ring detects water dripping over or pooling under the device and sends an alert to your smartphone or tablet.

Roost Smart Water Leak and Freeze Detector: This detector senses water leaks and sends alerts to smartphone. It also monitors your house for abrupt changes in humidity and temperature levels.

 

Honeywell Lyric Wi-Fi Water Leak and Freeze Detector: The Lyric Detector provides updates on humidity in the air and temperature and sends alerts if water is sensed by the four-foot cable or the contacts on the detector itself. If there’s a problem, Lyric will tell you with an audible siren and an alert in the Lyric app. With push notifications, homeowners can set up an inner circle (from neighbors to friends and family) who also can also be notified when water is sensed.