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Homeowners can save more with water detection technology

August 28, 2023

Your customers have likely heard of smart home devices in some capacity. According to a recent Nationwide survey, 66% of homeowners currently own at least one smart home device but many of them don’t realize the devices they have could be saving them money on insurance premiums.1 What’s more, the use of such technology is critical from a risk management perspective, particularly when it comes to water leak detection and prevention.

Benefits of smart home technology

Smart home devices offer more than just security; they can also provide peace of mind for those living with the risk and unpredictability of owning a home.

The desire for peace of mind and increased comfort with connected devices have contributed to an uptick in interest in smart home technology, particularly from younger generations. In general, affluent homeowners and Millennials are more likely than other homeowners to own smart home products than other homeowners.1

To stay on top of technology trends and keep up with consumer demand and interest, independent agents should not overlook the value of smart home technology, especially high-impact devices such as water leak detectors.

Per Nationwide’s survey, over 3 in 4 agents (78%) typically recommend that their customers purchase smart home products to manage risks to their home—primarily sensors to monitor for smoke or carbon monoxide (56%), smart locks (54%) and sensors that can shut off water in case of a leak (54%). According to agents, peace of mind (63%), safety (58%) and protection—both for the users home (56%) and their family (53%)—are the primary benefits of smart home products.1

Why water leak detectors?

The data is in: The likelihood of water damage alone makes a strong case for water leak detectors. Water damage is the second-highest source of insurance claims, making up 23% of claims.2 About 1 in 60 insured homes has a property damage claim caused by water damage or freezing each year.3 To put it into perspective, water damage affects almost 14,000 people in the U.S. every day.4

Many homeowners don’t fully understand the cost of water damage—it’s more than just the claims. On average, water damage repairs cost $12,500.2 And that’s before accounting for the loss of irreplaceable items and the accompanying emotional toll.

Unfortunately for homeowners, only 27% say they’re familiar with new water leak detectors that can monitor water flow and leaks. Familiarity overall with other types of insurance-based IoT devices also remains low. Fortunately, this presents an opportunity to educate customers on the benefits of smart water detection sensors.

Given the potential impact of a leak, it’s no wonder that the majority of agents typically recommend purchasing smart sensors that can shut water off in the event of a leak.1

Give your customers peace of mind with smart home technology through Nationwide

While water is one of the most common sources of insurance claims, it’s also the most avoidable. Nationwide’s smart home monitoring system from Notion® helps to prevent damage from overflowing bathtubs, frozen water pipes that burst, sewer backups, sump pump failures and more. These same sensors can help customers keep their homes safe from break-ins and fires.

How Nationwide water leak detectors work

All customers need to do is place sensors near water sources such as toilets, air conditioners, sinks and pipes. The sensors then monitor for unusual activity and provide alerts to the user’s smartphone or tablet so they can quickly respond to any problems that could otherwise become catastrophic and costly if left unchecked.

While consumers agree that the top three benefits of smart home products are safety, home protection and peace of mind, your customers will also like the cost savings they can offer.2 In addition to what customers can save from minimizing damage with early detection, Nationwide offers a discount on the price of the sensor kit as well as discounts on property insurance when your customers add the smart home program to their homeowners policies.

How Notion benefits customers

Though few homeowners have spoken with their insurance agent about smart home products, a majority have expressed interest in smart home devices if it saves them money on insurance premiums.1 According to our survey, homeowners purchase smart home products to reduce anxiety and increase energy efficiency.

Those who do not own smart home products say they are too expensive, unnecessary or don’t know enough about the technology. This is your opportunity to further develop your reputation as a trusted source of information for customers and outline all the potential benefits of smart home solutions.

Nationwide helps make your conversations easier by offering clear, customer-friendly information on how their insurance coverage might be impacted by owning devices and why they should be interested in smart home monitoring. Download this infographic to share with your customers and start the conversation so you can spend less time explaining and more time growing your business.

Offering premium discounts from Nationwide can help you both attract new customers and keep your existing customers engaged—and engaged customers means better retention. Plus, offering the smart home program can support a better loss ratio and provide you with insights into your customers’ property risks. Start your path to smart growth today by adding the smart home program to every homeowners quote.


  • 1

    Nationwide Agency Forward Smart Home Survey, August 2021

  • 2

    23% is the weighted average for 2017 – 2021; $13,500 is the weighted average of loss severity for 2017 – 2021.

  • 3

    Insurance Information Institute calculations, based on ISO®, a Verisk Analytics® business, data for homeowners insurance claims from 2017-2021

  • Availability varies by state, coverage selections and rating factors. Program criteria differ in Washington and California. The discount for smart home participation will be discontinued if an eligible smart home monitoring system is not purchased and activated within 55 days of enrollment. The smart home monitoring system and related support will be provided by the third-party system provider. Nationwide is not responsible for the system of any home monitoring.