Smart home insurance discount programs reward homeowners who install connected safety devices. These discounts can save you 5% to 25% on your annual homeowners insurance premium. Major insurers now recognize that smart technology reduces claim frequency. Devices like monitored alarm systems, water leak sensors, and smart smoke detectors all qualify.
The savings depend on your insurer, your state, and the type of monitoring you choose. A centrally monitored security system typically earns the largest smart home insurance discount. However, even self-monitored smart devices like Ring or SimpliSafe may qualify for smaller credits. As a result, millions of homeowners leave money on the table by not reporting their smart home devices to their insurer.
How the Smart Home Insurance Discount Works
Insurance companies offer the smart home insurance discount because connected devices reduce risk. Water leak sensors catch burst pipes before they cause $10,000 in damage. Monitored burglar alarms deter break-ins. Smart smoke detectors alert the fire department faster. Each device lowers the chance your insurer pays a costly claim.
To qualify, you typically need devices that actively monitor your home. In most cases, insurers want central station monitoring from providers like ADT, Brinks, or Vivint. Some insurers also accept self-monitored smart systems. You must notify your insurance company after installation. They may ask for a monitoring certificate or proof of purchase. The discount then applies at your next renewal or immediately upon verification.
Not all devices earn equal credit. A full monitored fire and burglar alarm system earns the largest smart home insurance discount. Standalone smoke detectors and deadbolts earn smaller credits. Water leak sensors and automatic shutoff valves are increasingly recognized as separate qualifying devices. For example, Travelers specifically promotes water leak sensors as eligible for additional savings.
How Much Can You Save with a Smart Home Insurance Discount?
Savings vary widely by insurer and state. A centrally monitored alarm system typically saves 10% to 25%. Self-monitored smart security systems earn 3% to 10%. Basic protective devices like smoke detectors and deadbolts save 2% to 5%. On a $1,500 annual premium, a 15% smart home insurance discount saves $225 per year.
Water damage is one of the most expensive homeowners claims. The Insurance Information Institute (III) reports that smart home devices can reduce premiums by 5% to 20%. Water leak sensors and automatic shutoff valves may earn an additional 1% to 5% on top of security system credits. As a result, a fully equipped smart home could save $300 or more annually.
| Insurer | Smart Home Insurance Discount Range | Monitored System Required? | Notable Smart Home Partnerships |
|---|---|---|---|
| State Farm | 5%–15% | Yes, for maximum | None branded |
| Allstate | 15%–25% | Yes, for maximum | ADT |
| Progressive | 5%–10% | Preferred | None known |
| Liberty Mutual | Up to 10% | Preferred | Google Nest |
| USAA | 5%–20% | Yes, for maximum | None branded |
| Farmers | 5%–15% | Yes, for maximum | Ring |
| Nationwide | Up to 15% | Preferred | IoT pilot programs |
| Travelers | 5%–15% | Preferred | Amazon / Ring |
Which Insurance Companies Offer This Discount?
Allstate offers one of the most generous smart home insurance discount programs. They partner with ADT and recognize a wide range of devices. Savings reach up to 25% in some states. Their program covers monitored burglar alarms, fire alarms, and smart water shutoff valves.
Travelers stands out for its proactive approach. They have partnered with Amazon to offer free Ring Alarm kits to policyholders. This program gives you the qualifying device at no cost. Typically, Travelers provides 5% to 15% savings for the smart home insurance discount. They specifically promote water leak sensors as qualifying devices.
Liberty Mutual has worked with Google Nest. They have offered free or discounted Nest Protect smoke detectors to policyholders. Farmers partnered with Ring to provide free alarm kits. USAA offers up to 20% savings and recognizes smart locks and water leak sensors. However, USAA is only available to military members, veterans, and their families. Nationwide provides up to 15% and has piloted IoT-based risk reduction programs.
How to Apply for the Smart Home Insurance Discount
First, install qualifying smart home devices. A monitored security system earns the largest smart home insurance discount. Add water leak sensors and smart smoke detectors for additional credits. Make sure your system includes central station monitoring if possible.
Next, contact your insurance company. Call your agent or log into your online account. Provide your monitoring certificate from your security provider. In most cases, companies like ADT and Vivint supply this document automatically. Your insurer may also accept a purchase receipt or installation confirmation. Some companies verify your system through their smart home partnerships.
Finally, confirm the smart home insurance discount appears on your policy. Check your declarations page at renewal. The discount should be listed as a protective device credit. If it does not appear, call your agent directly. For example, State Farm lists it under their Protective Device Discount. Keep your monitoring active year-round. Typically, canceling your monitoring service means losing the discount at your next renewal.
Frequently Asked Questions
Does a Ring doorbell qualify for a smart home insurance discount?
A Ring doorbell alone usually does not qualify. However, a full Ring Alarm system with professional monitoring may earn a discount. For example, Travelers and Farmers both recognize Ring Alarm systems for their protective device credits.
Do I need professional monitoring to get a smart home insurance discount?
In most cases, professional central station monitoring earns the largest discount. Self-monitored systems may qualify for a smaller credit with some insurers. Typically, the difference is 3% to 10% for self-monitored versus 10% to 25% for professionally monitored systems.
Can renters get a smart home insurance discount on their policy?
Yes, many renters insurance policies also offer protective device discounts. However, the savings are smaller because renters premiums are lower. As a result, you might save $15 to $50 per year. Installing a monitored alarm system and smart smoke detectors typically qualifies you for the smart home insurance discount on a renters policy.
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Official Sources & Resources
For verified information on home insurance regulations and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- FEMA (Federal Emergency Management Agency): fema.gov
- FloodSmart (National Flood Insurance Program): floodsmart.gov
- USA.gov — Housing: usa.gov/housing
Content last reviewed April 2026. If you notice any outdated information, please contact us.