Some U.S. homeowners have an opportunity to save some money on their insurance bills–if they don’t mind sharing data from their smart home systems with insurance companies.

In June, Liberty Mutual Insurance and American Family Insurance announced discount programs for customers using Nest smart home devices.

Liberty Mutual will collect data from participating customers’ Wi-Fi connected Nest smoke and carbon monoxide detectors. Information shared will include whether the detectors’ batteries are charged, if their sensors are working, and if the Wi-Fi connection is stable. In return, customers will receive at least 5 percent discounts on their home insurance.


The Liberty Mutual Smart Home Verified Discount Program will first roll out to customers in Illinois, Kentucky, Pennsylvania, Alabama, Maine and Wisconsin. Other states will join the program later this year.

“Liberty Mutual Insurance is excited to partner with Nest and bring this valuable program to consumers,” said Michael Robon, senior vice president and Property Product Manager, Liberty Mutual Insurance. “These technologies provide the opportunity for consumers to reduce the chance of harm to their family and home by detecting events that trigger alerts on their smart-phones, wherever they may be. We believe customers seeking to monitor their homes with devices like Nest Protect demonstrate responsible behavior. As a result, we will be offering these customers reduced pricing on their home insurance policy. This not only provides better value for our customers, but also enables us to better understand how different technologies may reduce risk for our customers.”

American Family has partnered with Nest to provide free Nest Protect smart smoke and carbon monoxide detectors to policyholders in Minnesota. And homeowners, renters or condo policyholders who use smart home devices may be eligible for a five percent discount on their insurance. The discount is currently available in 15 of the 19 states that American Family operates in, and will roll out to all 19 states by August.

As with the Liberty Mutual program, American Family will collect data on battery levels and condition of sensors for smoke and carbon monoxide devices.

“American Family wants to not only help customers recover from accidents and tragedies, we want to partner with them to take a more proactive role in protecting the things they value,” said Julie Schaubroeck, American Family Insurance product and field marketing director. “By using these devices, they are demonstrating a commitment to potentially preventing these damaging events, and we want to reward them for practicing these safe habits.”

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