Smart devices—and their associated telematics applications—aretechnologically advancing at breakneck speed, and their use helpsinsurers create statistically accurate risk profiles. Theresult has been personalized policies including usage-based,pay-as-you-drive and pay-how-you-drive—and now, telematics ispenetrating the home insurance market.

Some insurers already have entered this arena, decreasingpremiums for so-called “smart homes.”

“Houses are getting smarter every day,” says Rebecca Galovich,assistant vice president of reinsurance underwriting at HartfordSteam Boiler (HSB), “and tech is becoming more interconnected. Thatenables homeowners to have control over the environment of theirhomes, adjusting thermostats from outside of the home andcontrolling security systems.”

In its “2014 State of the Smart Home” survey, IcontrolNetworks, a provider of connected home devices, predicts that therewill be 9 billion devices that connect to one's home by 2018,roughly equal to the number of smartphones, smart TVs, tablets,wearable computers and PCs combined.

The survey of nearly 1,000 respondents reports that 90% ofhomeowners and renters say personal and family security is one ofthe most important reasons for using a smart home system—with 67%ranking it as the No. 1 reason overall.

Click through read six different ways that connected devicesimpact the home insurance market.

Kitchen

Moisture sensors near appliances can send alerts if a pipebursts.

Owners can set coffee makers to brew a fresh pot, or set adispenser to automatically feed pets.

Refrigerators can alert a homeowner in the case of poweroutages, if the door is left ajar, or if particular food stocks aregetting low.

Ovens can be set to pre-heat and cook based on a homeowner'sarrival time.

Living room

Thermostat can be controlled remotely to save energy.

Lighting can be controlled on a schedule. LED lightbulbpackages, controlled by smartphone, can change lighting colors ordimming options, or be set to blink.

Basement

Water leak detectors can alert homeowners to flooded areas.

Alarms can text homeowners when tanks, water heaters orappliances leak. These alarms can also automatically shut off thewater supply to the malfunctioning equipment.

Security

Surveillance cameras can be used for monitoring the house.

Shades and blinds can be opened or closed on a schedule.

Motion detectors can be activated when tripped by the mailbox,lawn, driveways and porch.

Electronic door locks remotely lock or unlock based onauthorization. These locks include fingerprint scanning and canautomatically text homeowners whenever someone enters or leaves thehome.

Garage

Vehicle detection can announce visitors and turn on lights.

Backyard

Control filters, timers and temperature for pool or hot tub.

Sprinklers can be turned on or off depending on schedule.