You can get a home insurance discount for a security system, but can you get a discount for a water monitoring system?
We know most insurance companies nationwide offer discounts to customers who own a home security system that detects break-ins or fires. But what about detecting water leaks that can lead to damage?
Water damage statistics show that roughly 28% of all insurance claims are water damage based. Each year, approximately one in 50 insured homes files a property damage claim due to water damage or freezing. And repairing various types of water damage can be expensive, even if you have the best homeowner’s insurance policy.
The likelihood of water damage in your home makes a strong case for adding a water monitoring system in addition to your home’s security system for better peace of mind and a possible insurance discount.
Insurance Companies Offer a Discount on Homeowners Insurance for Alarm Systems
How much is a security system? On average, many run roughly $700+ depending on the protection options and technology you want to include.
Many insurers provide premium discounts on eligible policies if you have installed specific security devices and systems in your home. These discounts can go beyond strictly home security systems and may include other safety measures such as monitored smoke or carbon monoxide detectors.
Outside of protecting your home from potential thieves or fire, your home security system may also include water sensors to help detect leaks before they worsen or warn you of a malfunctioning appliance or faulty plumbing.
How Smart Water Detection Fits into Insurance Coverage
How well does smart water detection technology fit into your home’s insurance coverage plan? Better than you may think.
Some of the most common causes of water leaks are broken seals, clogged lines, damaged or decayed pipe joints, intruding tree roots, loose water connectors, and rapid temperature fluctuations. Beyond claims, the average cost of repairs is about $11,000. This figure does not include the loss of irreplaceable heirloom items such as old family photos or your grandmother’s wedding dress. Oftentimes, too, loss can include emotional stress incurred from worry about potential health concerns stemming from prolonged water leak exposure.
Insurance companies have a major interest in lowering the cost of hefty insurance claims made by their customers. Leak detection systems do exactly that. Many insurers offer home insurance discounts when a water leak detection system is installed.
At Moen, we want to empower every homeowner to protect themselves from water damage, loss and costly consequences.
What Smart Water Monitoring Systems Do
In-line smart water security devices that monitor your entire home’s plumbing, like the Flo Smart Water Monitor and Shutoff, can help you save thousands on home insurance claims by proactively alerting you to any potential water problems.* Smart water shutoff systems detect leaks immediately and automatically shut off the home’s water (through an app) to prevent catastrophic damage. Many systems also include moisture level monitoring.
These systems can help achieve substantial cost savings from leaks by addressing them before they escalate. Early detection reduces repair costs and lowers water bills by preventing unnecessary water waste. In addition, these systems prevent structural and personal property damage. Leaks that go undetected can weaken building structures, leading to costly repairs and potential safety hazards.
*Based on region and insurance provider.
How Homeowners Can Qualify for Discounts
Some insurance companies not only offer discounts on smart water monitoring systems and leak detection systems in their homes, but will offer what is called “connected home insurance,” a type of insurance that combines smart home devices and related services into a single protection product.
Not only will insurance companies often help with the costs of purchasing the system, but many will also even go the extra step to ensure professionals install the system. This can be done in different ways, from rebates or reimbursing the cost to the homeowner directly, to collaborating with leak detection companies to curate a specific product for its homeowners that discounts the cost of either the device, installation, or both.
Insurance companies also have other ways to incentivize homeowners to adopt a leak detection system in their homes, besides reducing the setup cost. Each is different, but many offer additional discounts on premiums when you install a smart water monitor system or smart water monitor and shutoff system.
Customers can submit an official Moen verification letter to their insurance carrier. The letter verifies that your home's supply line is protected and proactively monitored by the industry-leading Flo Smart Water Monitor and Shutoff.
Benefits Beyond Insurance Savings
Another great benefit of having a water monitor and shutoff system is potentially qualifying for eco-friendly residential rebates. Check with your utility to verify eligibility and requirements.
While saving money on homeowners insurance premiums is a plus, the true value lies in the peace of mind that comes from knowing your home is protected against major water damage. Knowing your health and personal belongings are protected is paramount.
In addition, the long-term financial savings make installing a water leak detection and shutoff system an even smarter investment for your future.
Getting Started
If you are unsure if your insurance provider has any partnerships with companies selling smart water devices, give them a call.
Advocate for your safety and your savings — remind them it is in their best interest, too.
