Smart homes are incredibly on trend right now, with homeowners installing new technology to control their lights, manage their HVAC system, and improve their home security. However, homeowners don't always consider that these additions could have side effects. New technology improves the comfort, convenience, and often cost-effectiveness of your property, but they also increase its replacement cost.
The Pros of New Smart Home Technology
New smart home technology originated with smart lights and smart thermostats. These sophisticated systems were designed to improve energy-efficiency, using analytic data to determine the best way to turn items around your home on and off. Lights can be dimmed or programmed to be motion-sensitive, while smart thermostats track your energy usage and try to achieve a balance between comfort and energy use.
Convenience is another advantage of smart home technology. If you've ever wanted to be able to check your garage door from work or look at who is ringing your doorbell before you answer it, a smart home makes this possible. As the technology has advanced, security systems, smart locks, water detection, and even smart fire alarm systems have been developed. These smart home technologies are designed to secure your home. They can protect your home from a variety of threats.
The Cons of New Smart Home Technology
As smart home technology is still comprised of cutting-edge, new products, it's expensive to purchase, install, and repair. The cost is what has held many homeowners back from investing in smart homes. Smart light bulbs can cost a homeowner hundreds of dollars to place throughout their home, and they can burn out and need to be replaced just like ordinary light bulbs. Smart thermostats need to be wired in and will cost a few hundred dollars, while smart security systems can ultimately cost thousands.
It's not yet known how effective smart devices are in securing your home, which means many homeowners may be lulled into a false sense of security. Many of these new smart home devices rely on fairly new technology such as WiFi, rather than things like wired connections. Though WiFi is more convenient than a telephone line, telephone lines are far more reliable. Thus, though these systems may be easier to use, they may ultimately not be as "safe" as the technology that they are replacing.
When it comes to smart security systems, in particular, regularly monitored devices are often being replaced by smart devices that are monitored by the homeowner. In terms of raw security, this could be dangerous, as a homeowner is less likely to notice an issue at their house than a professional monitoring company.
What Does This Mean for Your Insurance?
There are two factors you need to consider when it comes to your insurance package.
- You'll see an initial discount. When you switch to Smart Home appliances and technology, you may see security-related discounts. Many companies also give you discounts for energy-efficiency.
- Insurance costs may trend upwards. Over time, however, Smart Home technologies may trend insurance upwards, as homeowners are going to have to replace these systems when they are damaged.
- Further, you may need to revise your coverage. Smart Home technology is going to increase the value of your home and the items therein; you may need to increase your coverage limits.
All of this doesn't mean that smart homes aren't fantastic, but you may need to keep an eye on developments in the future to determine whether it's worth the cost of installation and repairs. To learn more about Home Insurance tips, give us a call at Kyle Insurance Group - Affordable American Insurance or download our mobile app!