09 February 2026
Smart home technology and your home insurance
2 minutes
If you have smart technology in your home, there are two aspects to consider in relation to your home insurance:
- Does it reduce risk for insurers?
If it does, insurers may have more confidence in the property, which could reduce the number of policy conditions, or in some instances, the premium itself.
- Is the smart technology itself insured?
Smart devices can be valuable, and it’s important to ensure they’re covered correctly.
Reducing Risk
A well configured smart home can reduce the risk of theft, escape of water and even flood. Whether you’ve installed the technology yourself or had a third party do it, you should always inform your insurer.
1. Theft
Smart home devices can reduce the risk of theft making your home appear attended - for example by randomly turning on lights and other devices, or drawing your curtains. You can also connect to doorbell and video cameras so that you receive automatic alerts.
When fully integrated, a smart home system can detect when a property is vacant, via your smart home hub or your intruder alarm panel, and can trigger automated responses. This may include turning off the water supply when nobody is home, or turning on the heating when the outside temperature drops to a certain point.
2. Escape of Water
Leak detection devices connected to your smart home hub, whether you use Alexa, Home Assistant or another system, can also reduce risk, particularly when linked to a shut-off valve near the stopcock.
For example, a client recently installed a leak‑detection system linked to a shut‑off valve. Their insurer subsequently removed a water‑damage endorsement due to the reduced risk.
Technology has improved significantly with batteries in leak detection devices now lasting years, rather than months. The cost of these devices, along with their hubs, makes them an affordable solution for one of insurers’ biggest claims costs.
3. Home monitoring
Interconnected with all of this home automation is home monitoring and video surveillance systems or VSS, the modern version of what we used to call “CCTV”. Video Surveillance Systems aren’t in an isolated, closed loop but are often networked to a smart home hub or server, integrate with smart analytics – including facial recognition - and potentially integrate with a third-party receiving centre. The third party control centre may then call the police or fire brigade if you are unable to respond.
A word of caution
Always speak to your insurer or broker if you are installing a smart lock of any kind. Insurers won’t accept all models as some may worsen your security.
Insuring your smart technology
All of this technology brings with it a cost that should be insured. Some items may fall under the buildings sum insured, others under contents. For example:
- Rack-mounted servers may be classed as buildings
- A standalone server sat on a shelf would typically be General Contents
You should review the total value of your setup - excluding software, but including all the hardware such as servers, routers, switches, drives, sensors, cabling and smart devices. Insurers can then provide cover for fire, theft, accidental damage and escape of water and other perils. Some may also cover the software if your licence key has also been stolen or compromised.
We would also recommend a home cyber insurance policy, which is not just about protecting devices; it’s also about protecting your family’s privacy and finances. You can read more about personal cyber insurance in our article: Protecting your family in the digital world
Next steps
Our Private Client team brings together specialist knowledge, personal guidance and a network of trusted third‑party professionals to help protect homes, valuables and lifestyles. By working with security firms, property managers, valuers and technical experts, we support clients in reducing risk and improving resilience.
To speak to us about your home insurance call 0208 256 4901 or email privateclients@howdeninsurance.co.uk
Steve Moores
Steve has built up a wealth of expertise and insight in private client insurance, having worked in insurance for more than 20 years. As the lead for our Risk Management proposition, he helps clients reduce the likelihood of a claim and ensures that, if a claim does occur, their policy responds exactly as expected.