What IoT Devices Are There for Homeowners Insurance?

What is the Internet of Things?

Internet of Things (IoT) refers to the network of interconnected devices and the technology that enables their communication. It also contains the actual gadgets. The Internet of Things links commonplace objects to the internet. As computer chips became smaller, it became increasingly feasible to incorporate them into everyday products. There are now possibilities for entirely connecting your home to the internet.

Internet of Things (IoT) devices handle multiple areas of risk, from doorbells that let you see who's knocking to a platform that allows homeowners to help out their neighbors; yet, their use can also save policyholders money on home insurance.

Canary Intrusion Detection System

New York-based technology venture Canary initially relied on crowdsourcing to create its first product, but it is currently valued at $66.2 million (£50.6 million) and partners with other insurance carriers.

The flagship All-in-One device of the company includes a high-definition video camera with night vision.

It also includes motion, vibration, sound sensors, and temperature and air quality monitors to make empty homes more secure.

If an intruder breaks into the home, the device will notify the owner via a connected app, giving them a choice to call the police.

Canary partners with U.S. insurers StateFarm and Allstate, giving customers cheaper house insurance utilizing the device.

Cocoon A.I. Powered Smart Security Cameras

Its gadget monitors infrasound vibrations – which humans cannot hear – to determine movement within a user's residence.

The device then runs a machine learning procedure to compare frequencies recorded while the residence is unoccupied and warns all users via an app if it detects unusual activity.

Unlike Canary's gadgets, Cocoon does not require a membership and works right out of the box. However, the app does not include the option to notify local emergency services.

Both gadgets allow users to emit a 90-decibel alert, which the lifestyle and technology publication T3 refers to as "pant soiling," to deter home intruders.

Cocoon's agreement with home insurance broker PolicyCastle enables its customers to receive a discount on their home insurance if they utilize the device.

The Swiss insurance firm Zurich also gives a 10% discount to Cocoon homeowners.

Ring Smart Video Doorbell

Amazon's acquisition of Ring, a California-based technology company, made headlines in March 2018 when the news broke.

The flagship product of the company, a video doorbell, connects to the smartphone app to show an H.D. video footage of whoever is at the user's front door.

The device also features a speaker that enables individuals viewing the feed on their smartphone to speak directly to the guest, creating the illusion of an occupied home even when no one is home.

The company was so confident in its product's capacity to deter unwelcome guests that it devised a plan to reimburse insured homeowners up to $10,000 (£7,700) for their insurance excess if they filed a theft claim.

Launched in 2015, a partnership with U.S. general insurer American Family Insurance offers home insurance clients a $30 (£23) discount on the device.

Amazon Smart Home Kit

In addition to acquiring Ring's doorbell technology, Amazon entered the home security business by offering "smart home kits."

These are intended to protect homes from leaks and theft, the two most frequent causes of insurance claims.

The tech giant partnered with U.S. personal and business insurance Travelers to market the gadgets to its consumers.

In addition to a 10% to 20% discount on Amazon's selection of three intelligent home kit bundles, policyholders who purchase one receives a "protective device discount" on their insurance.

In addition to these benefits, clients receive a complimentary Amazon Echo Dot.

Despite the opportunity to save on insurance, Value Penguin advises users to only take advantage of this offer if they were already planning to purchase a Travelers coverage. According to the company's estimates, customers save an average of only $30 (£23) on a standard insurance policy.

August Smart Lock

August, a San Francisco-based home automation firm, designed a "smart door lock" with the premise that intelligent houses should begin with the front entrance.

The device attaches to the user's front door and operates the deadbolt mechanism that secures the majority of locks.

Through a link to the home's WiFi, August's smart lock can sense a resident's smartphone and automatically unlock and lock the door upon their approach and departure.

It also interfaces with an app that tracks the device's behavior, including information on who locks and unlocks the door and its current locking condition.

August permits homeowners to save money on their homeowner's insurance coverage through "protective device discounts" offered by Liberty Mutual Insurance and many other U.S. companies.

Homies Peer-to-Peer Alert System

Homie is an effort of the Dutch insurance company Achmea and the market intelligence firm Accenture that uses messaging applications to connect neighbors.

By interconnecting, both companies anticipate that neighbors would inform one another and better respond to fires and break-ins, thereby aiding one other.

The two companies target underserved sectors, such as low-income households and social housing corporations, to lower the number of insurance claims filed against their policies.

Although Homies does not offer a formal discount on homeowner's insurance coverage, it strives to reduce the cost of insurance for low-income households and social housing organizations by reducing these claims.