Advancements in technology have brought great strength to home security systems, transforming what we once considered an average house into a modern smart home.
The Smarter, Safer Modern Home
The implementation of Internet of Things (IoT) sensors in home security devices has allowed homeowners to keep a closer eye on their homes, monitoring both external threats like intruders and internal perils like malfunctioning appliances, pipes, and furnaces.
IoT technology connects enabled devices to the Internet where they can rapidly transmit data and interact with other devices, usually accessible to homeowners via an app. Interactions are more hands-on than ever before. Users can not only check their doorbell and nanny cams, but they can also automate devices, set alarms, and even close garage doors.
The hi-tech features of these ‘smart’ devices provides more than real-time protection. They can act as a preventative stopgap to home security perils. The wide visibility and fast data response of IoT-enabled sensors assists in identifying small issues, such as newly formed water leaks, and quickly alerting homeowners before they worsen. By rapidly calling attention to potential problems, ‘smart’ security helps to mitigate damage and potentially hefty claims.
IoT and Homeowners Insurance
‘Smart’ security not only benefits homeowners, but insurers as well. By partnering with IoT device makers to share data and mitigate risk together, insurers can help their customers avoid potentially pricey losses and deliver a better, more proactive customer experience.
As soon as a ‘smart’ security device detects an abnormality, it can alert both the homeowner and the insurer. This speedy notification allows for quick response time, so the homeowner can take immediate action to mitigate a problem, and an insurer can quickly process a claim as necessary. Should a customer experience an issue, the insured can quickly be connected with a trusted solution provider, whether it be a plumber or other maintenance repair service. The quick fix of a soon-to-be leaky pipe can prevent a damaging flood; homeowners are left paying the price of a small repair rather than making a pricey insurance claim and causing lasting damage to their homes.
The benefits of IoT extend beyond financial savings. A key feature of IoT devices is their ability to securely produce and send data. When insurers embed ‘smart’ security into their business models, they are often given access to the company’s database, including valuable and immutable historical data. With this information, insurers can identify trends, gain insight into home risks and address clients’ needs...before incidents occur.
IoT sensors also makes fraud hard to fake. Entering the security realm provides proof (data, footage) in cases of suspected fraud.
Smart security holds excellent potential for the insurance industry, bringing speed and efficiency to home security, with rapid transmission of data to prevent extensive damage. Like all technology, however, smart security is susceptible to breaches.
IoT-enabled devices have their own IP addresses and capture data, including recorded security footage. Hackers have been known to target security devices to steal data, scare homeowners, and more. For insurers looking to work with smart security, technologists recommend using secure and current programs, regular updates, and penetrative testing as a means to combat hackers.