With the continued adoption of Smart Home products, many homeowners welcome devices that promote energy efficiency, cost savings and increased security. These sheltered homes can pose a lower risk to insurers and reduce claims costs, but insurers optimize how that information is extracted and used to mitigate the risk. A "healthy" home has several smart devices that monitor and communicate to determine passenger patterns. This not only makes it possible for homeowners to get the most out of their unit investment, but it also enables insurers to accurately assess risk factors and recommend mitigation tactics.
At present, home health care is obtained from individual units. For example, water use data is evaluated as its own unit. Although it is a useful feature, it tells only a fragment of the story and does not provide enough insight to determine a correct score.
The concept of evaluating data from different sensors is also being developed in the home. A water sensor warns the home of the presence of water, but before another unit is signaled to turn off the water, it will cross-verify that water is flowing through the pipes, monitor the water pressure even for the slightest fall and determine if the home is occupied. It is these patterns that occur behind the scenes, combined with water use data, that give the whole story. Cross-determining data is more powerful when assessing the health and risk of the public home leading to more appropriate responses. ] What is the home pattern in the home: full-time, part-time, etc.? Instead of simply using motion sensors to determine occupancy, collections can be collected from door locks, toilet flushes, electricity usage, etc. to confirm and improve the accuracy of data.
Does the homeowner include smart technology, and is it properly connected to mitigate the risks? Does a homeowner take immediate action when a risk condition is identified? How the homeowner reacts to the information provided is crucial to understanding the exposure.
Insurance data, such as claims names, help to increase the depth and clarity of insights and provide a more robust score.
It is absolutely necessary to collect data, but it is the insights found through the combination of different data sources that are the real value. As we continue to learn from home IoT data that we collect and cross-analyze them with insurance data, we need to weave in other data points and patterns to build a proper Smart Home health score. This can help insurers better determine the risk in the home and how best to mitigate it.
This is a former central blog worth sharing that talks a little more about IoT (Internet of Things).
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