Smart Home Tech & Home Value
Updated March 1, 2022 . AmFam Team
A basement renovation, a kitchen upgrade, adding a third bedroom — these are all great ways to up the value of your home. But did you know that smart home and home automation systems may also increase your home’s value? And, as our world becomes ever-more dependent on the Internet of Things (IoT), a home integrated with smart features greatly appeals to a potential buyer.
Let’s take a look at home automation and learn how adding smart technology to your humble abode can increase its value.
What Is Home Automation?
Have you ever walked into a room and the lights automatically turned on? How about ringing the doorbell and being greeted by your neighbor — even though they’re at the grocery store? These are forms of smart home automation in action. You’ve heard of a “smart home” before, right? Basically, home automation and smart home go hand in hand. They mean that your home uses internet-connected devices that can remotely monitor and manage the technology in your home. Another definition for these interconnected devices is Internet of Things (IoT).
A home automation product is designed to make life easier for you, create a safer, more secure environment, and promote energy efficiency, which in turn saves you money. Even better, most of these devices can be controlled from a smartphone or tablet, so you can be alerted when the unexpected occurs — no matter how far away from home you are. Take a look at our beginner’s guide to setting up a smart home.
Examples of Smart Home Technology
IoT devices and technology continues to grow, and it’s not stopping. More and more devices are being created with Wi-Fi capabilities, meaning you’ll find smart home technology anywhere from smart smoke detectors to smart vacuums. Here’s a list of some common smart products:
- Smart thermostats
- Home security systems
- Smart smoke and CO detectors
- Automated sprinklers
- Water leak detectors
- Smart lights
- Controllable shades
- Other intelligent appliances e.g. coffee makers, vacuums, refrigerators.
The list is endless!
Even cooler, many of these smart devices can be controlled by AI’s like Amazon Alexa or Google Home — intelligent personal assistants that are integral pieces to a smart home automation system. Voice control will play a critical role in the future of connected technology, and their capabilities can continuously grow throughout your ownership when you install “skills,” which is done simply by downloading specific apps.
To get you started, we’ve highlighted a few popular products that will help make your home safer and smarter, and all of these devices can be controlled from your smartphone.
Smart security systems get you a variety of connected devices to help keep your home both safe and secure. And the best part is that they're customizable and easy to use.
Smart thermostats like Nest (Opens in a new tab)are great ways to control the temperature and climate of your home — and it’s equipped with energy-saving features to help reduce the price of your utility bill. Even better, the Nest Thermostat is so smart that it adapts to your life as it learns your behaviors. Do you turn the heat down when you leave for work? Nest makes note and will start doing it for you. On your way home from work? It’ll turn the heat up so you’ll walk in the door to a cozy home. And, you’ll be able to adjust the device from your phone, laptop or smartwatch so you’re in control no matter where you are. Here are some more benefits of smart thermostats like Nest.
Smart doorbells let you answer the door from anywhere using your smartphone, tablet or PC. You’ll be able to see, hear and speak to anyone on your property no matter where you are!
Bonus! Having any of these smart home products can earn you a homeowners insurance discount as a way to reward you for your savvy behavior.
How Does Home Automation Increase Property Value?
So how exactly does having all this fun technology increase the value of your property? We’ve highlighted some top reasons people are looking at homes with smart technology already integrated.
Safety and security
Staying safe at home is a priority for most people, which is why home security is a key driver for smart home implementation. IControl Networks conducted a survey and found 90% of respondents said that home and family security is a top reason for them to purchase a connected home or adopt a smart home lifestyle. Having a home already equipped with a home security system in place will definitely appeal to potential buyers.
Energy efficiency
People are also looking at homes integrated with technology like smart thermostats and smart lights for energy efficiency. As potential buyers review home energy usage data, having a lower utility bill because you implemented smart devices is appealing when a prospective buyer compares your annual home utility consumption to other homes in that area.
Comfort and convenience
Many people find that smart home technology creates a more comfortable and convenient environment. Whether it’s entertainment technology like smart TVs and built-in speakers, or lights and blinds you can control from your phone, people are looking for immediate benefits.
The excitement over smart home tech and IoT continues to grow, and industries are catching on to what people really want. People are searching for simple devices with obvious benefits. A report by Markets and Markets (Opens in a new tab) found that “41 percent of people have already adopted at least one smart home device, with their favorites being connected appliances (20 percent), thermostats (16 percent), security (12 percent) and lighting control (10 percent).”
Is It Worth the Cost?
Smart products fall on all ends of the price spectrum, but the important thing to keep in mind is that the technology is a long-term investment. With certain products, homeowners are reaping the benefits of decreased energy and maintenance costs, and benefiting from lower home insurance premiums. Home buyers are expecting to pay more for homes with smart systems in place, so investing in smart technology now means you can make your home more appealing to a potential buyer and perhaps even sell your home for a higher price in the future.
We’re always looking for ways to help you protect what matters most. Learn more about smart home technology with American Family Insurance and connect with an agent (Opens in a new tab)to learn how you can save on your homeowners insurance by having qualifying smart home products.
This article is for informational purposes only and includes information widely available through different sources.
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Your home is more than a roof over your head. It’s where your dreams grow, your family thrives and memories are made. But the possessions you keep inside are important, too.
Whether you’re renting an apartment or own your home, you’ve most likely got an insurance policy designed to protect your dwelling and the things inside. Should the unthinkable happen and you have to use that insurance policy, it’s important to have a plan in place. And a home inventory list is a great way to get started!
We’ll walk you through how to create a home inventory so — in the event of the unexpected — you’ll be more prepared and have a streamlined recovery.
What Is a Home Inventory?
Quite simply, a home inventory is a complete list of all the items, especially valuables, in and around your home. The best home inventories include photos, descriptions and dollar values of each of your belongings. The more detail, the better! It’ll help you provide a comprehensive list to your agent of items lost in the event your home is damaged or destroyed, allowing you to get the most out of your coverage.
When your describing the items in your list, remember that the more information, the better. Here’s a quick reference list of the type of information you should include in your home inventory list:
- An in-depth description of the items. For example, rather than writing down “diamond ring,” be more descriptive, such as: “an emerald cut diamond ring, with white gold shank, accent stones and initials inscribed below the bridge.”
- Make, model, and/or serial number of the items.
- Date of purchase, receipts and photos.
- Estimated replacement cost if you bought it today. Do note that the value of the items might be different today than it was when you first bought them. This is especially true with jewelry, and other valuables.
- Appraisals at time of purchase. Especially if your items were appraised for insurance purposes.
Why Do I Need a Home Inventory?
Whether you’re a homeowner or a renter, everyone can benefit from a home inventory!
If you ever have to make a claim, a home inventory is a great asset to have, especially after stressful events like theft, storm damage or a fire (take a look at how one renter used their home inventory after facing an apartment fire).
When you make a claim, you typically submit information on everything that was lost — which can be difficult to do off the top of your head for all your possessions. Remembering to replace your TV or computer are no-brainers, but when it comes to remembering each piece of jewelry in your jewelry box, things tend to get overlooked. Having a personal property inventory will help, along with knowing how to properly insure your jewelry.
When you have your home inventory checklist, you know exactly what needs to be replaced, and you’ll have peace of mind knowing your entire household is protected.
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You’re admiring the rain from the comfort of your home when you notice a sound — the unmistakable drip of water dropping onto your floor. The first and hardest step is figuring out why your roof is leaking. And with these tips, you’ll find the culprit in no time!
Here’s Why Your Roof Is Leaking
The list of reasons why your roof is leaking may seem long, but don’t worry — when it comes to finding the leak and fixing it, the finding is the hardest part. And the good thing about these problems? They can all be fixed. Check out the list and see what’s troubling your roof:
Your roof is old
Roofs don’t last forever. Protecting your home and everything inside it from the elements comes with a cost. And with all that rain, snow, ice, wind and even sunlight wearing down your roof, it becomes more susceptible to leaks. Every roof will eventually need to be replaced, so learn more about how long your roof should last based on what it’s made of.
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There’s no good time to find out your roof needs repair — but you may be able to mitigate that pain by routinely checking your roof for damage after severe weather. Waiting for a leak or damage to present itself gives the problem time to grow and worsen.
And sometimes, you’ll be faced with expensive roof and interior damage repairs if you’re not diligent. By being proactive and checking your roof for damage after severe weather hits can help your roof — and your savings — stay healthy.
