Smart home technology is no longer a novelty, it’s quickly becoming a standard feature in rental properties. From internet-connected thermostats to intelligent water leak sensors, landlords are adopting these tools to improve safety, efficiency, and tenant satisfaction. But beyond convenience, there’s a practical financial angle worth exploring: how smart home devices can impact landlord insurance premiums and risk evaluations.
At Ashburnham Insurance, we’ve been closely monitoring how this shift affects property owners and their insurance policies. Here’s what landlords need to know.
Why Smart Home Technology Matters to Insurers
Insurers assess risk. The lower the risk, the lower the premium. Smart devices offer landlords more control and visibility over their properties, which directly contributes to risk reduction. This is especially important for landlord insurance, which covers buildings and potential liabilities in often-unoccupied or tenant-controlled spaces.
Security Systems and Smart Cameras
One of the biggest concerns for landlords is unauthorised entry and theft. Traditional alarm systems have long played a role in reducing claims, but smart security systems take this further. Internet-connected cameras, motion sensors, and remote monitoring tools let landlords or property managers keep an eye on the property 24/7.
Insurance impact: Smart security systems lower the likelihood of break-ins, which can reduce claims for theft or property damage. Some insurers may offer reduced premiums if a verified system is in place, especially if it’s professionally monitored. We encourage landlords to keep records of installed systems, maintenance schedules, and monitoring subscriptions, as these can be relevant during underwriting.
Leak Detection and Water Monitoring Sensors
Water damage is one of the most common (and costly) insurance claims. A burst pipe or undetected leak can go unnoticed in rental properties, especially if the tenant is away or the property is vacant. Smart leak detectors, which alert owners at the first sign of a problem, can drastically reduce response time.
Insurance impact: Leak detectors are a game-changer in risk mitigation. When water damage is prevented or minimised, insurers benefit, and so do landlords. This tech could lead to lower premiums or more favourable policy terms, especially for properties with a history of water-related issues. In multi-unit properties, placing leak detectors in high-risk areas such as boiler rooms, under sinks, or near washing machines can reduce cumulative risk.
Smart Thermostats and Energy Management
Heating-related claims, especially due to frozen pipes, often occur when properties are unoccupied. Smart thermostats let landlords remotely manage temperature settings or ensure tenants maintain a minimum heating level during cold months. In addition, energy-efficient devices can reduce fire risk from outdated or overworked heating systems.
Insurance impact: While less direct than security or water monitoring, smart thermostats contribute to a better risk profile. Insurers may consider these devices a proactive measure, and they can be a tiebreaker when assessing borderline cases for premium discounts.
How Insurers View Tech-Enhanced Properties
Not all insurers treat smart technology the same way. They assess each case individually, taking into account not just the presence of smart devices but how they’re maintained and integrated. A well-documented, properly installed system is viewed more favourably than a DIY setup with gaps in coverage.
Insurers typically look for more than just the presence of smart devices, they consider how those systems are installed and maintained. Professional installation, particularly for security systems, is preferred, as it ensures reliability and proper setup. Integration with emergency response or alert services adds another layer of protection, allowing for quicker reactions in the event of an incident. Insurers also value evidence that the technology is actively used and regularly maintained, rather than simply installed and forgotten. Finally, compatibility with existing safety infrastructure, such as smoke alarms and sprinkler systems, can influence how favourably a property is viewed from a risk perspective.
Potential Discounts and Considerations
So, can landlords expect a discount just for installing a few smart devices? Sometimes, yes, but it depends on the insurer, the property type, and the risk level. Here’s what landlords should consider:
- Bundling smart tech with other safety measures (like fire doors, up-to-code wiring, and smoke detectors) strengthens your case for lower premiums.
- Communicate with your insurer: Let them know what devices are in use, provide proof, and ask if you qualify for tech-related discounts.
- Use the tech actively: Having smart sensors is only useful if they’re functioning and alerts are responded to. Insurers may ask about your response plan or history with these devices.
At Ashburnham, we’ve seen a growing willingness across the insurance industry to reward proactive landlords who use technology to reduce claims. While discounts vary, the trend is clear: better-managed properties tend to face lower costs over time.
A Smarter Standard for Landlord Coverage
Smart home technology is reshaping what a “well-maintained property” means in the insurance world. As this technology grows, we anticipate that insurers will increasingly expect these systems, especially in higher-value or multi-occupancy buildings.
Smart home devices don’t just make properties more appealing, they make them safer, more efficient, and less risky to insure. While not a guaranteed ticket to lower premiums, these tools are increasingly valued by insurers who recognise their role in preventing losses.
At Ashburnham Insurance, we’re committed to helping landlords navigate this new landscape. Whether you’re already tech-savvy or just starting to explore smart home upgrades, we’re here to assess your risk profile and help you find the most cost-effective coverage. Call us for FREE on 0800 1696137.