Reducing Home Insurance Costs with Automated Devices and Security Systems

Personal Lines

Insurance carriers increasingly recognize the value of advanced home security and monitoring systems. Primary and secondary/vacation homes equipped with automatic water shut-off devices, remote control temperature monitoring devices, and security systems demonstrate to carriers that a homeowner is proactively managing their risk.

This proactive stance can lead to reduced claims and lower insurance payouts, making these homes more attractive to insurers – which means lower premiums for you.

With the personal lines insurance market currently experiencing a hard market causing premiums to rise, investing in advanced home devices is an effective cost-saving strategy. Automated water shut-off devices and remote control temperature monitoring devices are effective investments currently gaining a lot of traction in the market.

Automatic Water Shut-off Devices

Automatic water shut-off devices are designed to prevent water damage by shutting off the water supply in the event of a leak or abnormal water flow. These devices are often connected to a home’s plumbing system and can be programmed to detect unusual water patterns, such as those caused by a burst pipe or a malfunctioning appliance. By swiftly shutting off the water supply, these devices can significantly reduce the extent of water damage, potentially saving homeowners and insurers from substantial financial losses.

According to Chubb’s Homeowners Risk Report from Personal Risk Services claim data, “non-weather-related water losses are the number one source of property damage and 45% of all interior property damage is caused by water, happening more often than fire and burglary”.1 Automatic water shut-off devices are an effective way to reduce your risk of damage. For optimal results, we recommend using a licensed professional plumber to install an automatic water shut-off device since it involves replacing and cutting into your main water line. This is an effective tool for both your primary and secondary/vacation homes.

Preventing Frozen Pipes with Remote Control Temperature Monitoring Devices

In colder climates, the threat of frozen pipes isn’t limited to primary residences—it extends to secondary or vacation homes as well. Frozen pipes can be a substantial concern for homeowners, as the water inside them expands and may result in pipes bursting, leading to considerable water damage. To address this issue, remote control temperature monitoring devices provide a proactive solution for both primary and secondary/vacation homeowners. These devices empower homeowners to remotely monitor and adjust the temperature inside their homes, ensuring that pipes are protected, even when they are away.

Home Security Systems

Don’t forget about implementing home security systems. In addition to providing a discount on your homeowner’s insurance, security systems can have several additional advantages:

  • Visual indicators that you have a security system can deter criminal activity. Utilize signs and stickers provided by your vendor to make it clear that your home is monitored.
  • Security systems protect your valuables beyond basic security.
  • You can view your home from your smart device, which is helpful when you are away on business trips or for vacation.
  • Security systems provide peace of mind, reducing stress and worry about your home and family’s safety.

Central Security Systems

  • Example: ADT
  • Provide the highest level of protection
  • Monitored by a service that sends alerts to your local police or fire department
  • Monitors for intrusion, fire, flood, and/or carbon monoxide
  • Typically installed by a service provider
  • Can also be monitored by your smart device
  • Provides the most significant discount

Self-Monitored Security Systems

  • Examples: Nest, Simplisafe
  • Sends alerts to your smartphone or email
  • Monitors for fire, theft, and/or carbon monoxide
  • Typically self-installed
  • Most commonly-used systems
  • Accessed from your smartphone

Key Takeaways:

Homeowners who invest in these devices not only elevate the safety and security of their primary and/or secondary homes – but also strategically position themselves for potential discounts on insurance premiums. Reach out to your M3 Elevate account executive to discuss your options and to help determine which system makes sense with your current assets.



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