Will Home Insurance Cover Your Smart Tech?

August 03, 2020

There are numerous new technologies available for homes. From solar power to connected systems, each one of these adds value to your home. And, if a fire occurs, you may want to replace these items. Your home insurance may help cover those losses. To do so, your policy needs to reflect the value of these items. Do not assume you automatically have coverage. There are a few key things to know.

What Is the Value of These Features?

Let’s say you had an expensive computer system in your home that you use for gaming. It cost a significant amount of money. Or, you have art or a collectible of high value.

You know to let your agent know about these items. The policy needs to mention them specifically. Otherwise, they may not have coverage. The same applies to smart tech. If you have highly valuable additions, let your agent know.

Why does this matter?

  • Most home insurance policies have a per item maximums they will pay out. For example, this may be $1,000. If your smart thermostat has a value over that, you may not receive enough to replace it.
  • Every home has a maximum amount of coverage for contents. Most often, this is 10 percent of the home’s total property coverage. If your smart tech and other belongings are more than this, you may not have enough protection in place.
  • Most policies need a rider for highly valuable items. A rider specifically covers that system or feature in the home. It extends your home insurance beyond the basic coverage.

How do you know the value of these systems? Consider the cost to replace these items. Is it more than your policy’s stated limits? If so, let your agent know. He or she will work with you to add value.

Updating your policy at least one time a year is important. It gives you the opportunity to speak to your agent about new tech like this. It may help you to be sure you have enough coverage for all the risks you face.

Investing in smart technology is a good thing. Some forms of it may help reduce your home insurance costs. However, you need to let your home insurance agent know about them. This is only true when the value interferes with the amount of financial protection you have. Fires, theft, and vandalism can damage these valuables. Your insurance can cover that, as long as you make the right arrangements.