Smart home gadgets—like voice assistants, cameras, smart locks, and thermostats—make life easier and more connected. But they also come with risks. Cybercriminals, power surges, and system failures can all wreak havoc on your devices and your peace of mind. That’s why it’s essential to understand how your insurance stacks up and what you can do to add another layer of protection.
In this article, we'll examine the coverage provided by typical homeowners and renters insurance policies for smart devices. It also highlights potential gaps in coverage and guides how to safeguard your home network against both digital and physical threats.
Understanding Your Current Coverage: What Insurance May Already Protect
Most homeowners and renters policies treat smart devices as personal property. That means if your smart speaker, doorbell camera, or connected appliance gets damaged by a covered event—like a fire, theft, or power surge—there’s a good chance you’re eligible for a payout. But here’s the catch: policies typically have limits, and high-end electronics often fall under sublimits, which cap the amount you can claim. That means your insurance might not fully reimburse you for a top-of-the-line smart fridge or full-home security system.
Even more critically, most standard policies don’t cover cyber threats. If a hacker breaks into your smart lock or your baby monitor feed gets compromised, traditional insurance probably won’t help unless you’ve added extra cyber protection to your policy.
Smart Threats: Cyber Risks and Power Surges That Aren’t Always Covered
Today’s smart homes face more than just fire or theft. Cyberattacks and electrical issues are serious threats, and not all insurance policies account for them. Hackers can use malware to unlock smart doors, access security cameras, or steal data from your connected devices. And when storms hit or the grid acts up, power surges can damage or destroy expensive electronics in seconds.
To protect your investment, think beyond insurance: use surge protectors, keep your home network secure, and consider policy upgrades that specifically address cyber risks.
Smart Protection: Steps to Secure Your Devices and Expand Coverage
To truly protect your smart devices and the information stored on them, you need a two-pronged approach: physical safeguards and innovative insurance options. Start with the basics: use strong, unique passwords for all your accounts, and always enable two-factor authentication. Ensure your Wi-Fi is secure and keep all your device software up to date. For physical protection, use surge protectors and consider installing battery backups for critical systems, such as your home security system.
From an insurance perspective, review your policy’s personal property limits. If your devices are worth more than what’s covered, ask about scheduling high-value items or adding cyber coverage. Many insurers now offer add-ons that protect against hacking, data breaches, and even digital extortion.
SelectQuote Can Help You Protect Your Smart Home Investment
Smart homes deserve smart protection. Whether you’ve just started using smart lights or you’ve fully automated your home, it’s essential to make sure your insurance keeps pace with your tech.
SelectQuote can help you review your current coverage, easily compare quotes from top-rated insurers, and find policy options that include cyber protection or additional personal property coverage. This ensures the security of your smart home against both digital threats and physical damage.
