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Insurers price homeowners insurance on risk. A house with a monitored alarm, water-leak sensors, and an automatic shutoff valve is simply less likely to generate a large claim than an identical house without them. That is why many companies offer protective-device discounts, and why smart home gear is one of the few upgrades that can pay for itself through your insurance bill.
Which devices actually earn discounts
Monitored security systems. The longest-standing discount in the industry. Professionally monitored burglar and fire alarms can earn 5 to 10% off, sometimes more, depending on the insurer and state. Self-monitored systems usually earn less or nothing, because the monitoring is what cuts response time.
Water leak detectors and automatic shutoffs. Water is the most common non-weather claim in homeowners insurance, and insurers know it. Leak sensors under sinks, behind washers, and near water heaters are cheap, and automatic shutoff valves that stop flow when a leak is detected are increasingly recognized with credits.
Smart smoke and CO detectors. Detectors that alert your phone, and monitored ones that alert a dispatch center, can qualify for fire-protection credits beyond what standard detectors earn.
Smart locks and video doorbells. These count toward burglary-protection credits with some insurers, especially as part of a monitored package.
Smart thermostats and temperature sensors. Frozen-pipe claims spike every winter. Temperature sensors that alert you when the house drops toward freezing help prevent them, and some insurers in northern states credit them.
How big is the discount, really
Protective-device discounts usually run 5 to 15% of the premium, stacked on top of other discounts like bundling. A 10% credit on a $2,000 policy is $200 a year. A set of leak sensors costs a fraction of that. The math works best when the devices also prevent the deductible and hassle of an actual claim.
Before buying, call your insurer or agent and ask which specific devices they credit. Most people never ask about the full list of available discounts, and smart-home credits are near the top of the list people miss.
What does not earn a discount
Voice assistants, smart lighting for convenience, and entertainment gear do not reduce claim risk, so insurers do not credit them. Insurers also generally do not care about the brand; they care whether the device is monitored or automatic. A professionally monitored system from a local company usually earns the same credit as a big national brand.
Keep the paperwork
Discounts are not applied by magic. After installation, send your insurer the monitoring certificate or purchase documentation and ask for the credit to be added at your next renewal. If you switch insurers, bring the paperwork with you and ask again.
The devices also do the boring part: they catch the leak at 2 a.m. before it becomes a $20,000 kitchen. The discount is the bonus.
