Telematics aren't just for cars anymore. Liberty Mutual customers who agree to send monthly data from their smoke and carbon monoxide alarms to the insurer are eligible for discounts on their homeowners insurance.
Liberty Mutual announced last month it is partnering with Nest, the home automation unit of Google, to offer the new program to its customers. By allowing Liberty Mutual to obtain smart home information from a Nest smoke and carbon monoxide alarm, customers can be eligible for the insurer's Protective Devices discount program.
In a release, Liberty Mutual says it will collect information on whether the Nest device is working properly or not. Once a month, Nest will tell the insurer if the alarm's batteries are charged, its sensors are working and its Wi-Fi connection is good.
The Protective Devices program already includes discounts for smartphone-enabled smoke alarms and new water and theft protection technologies.
"We believe customers seeking to monitor their homes with devices like Nest Protect demonstrate responsible behavior," says Michael Robon, senior vice president and property product manager, Liberty Mutual Insurance. "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."
Called "Smart Home Verified Discount," the new program is available in six states: Illinois, Kentucky, Pennsylvania, Alabama, Maine and Wisconsin. The program will be introduced in additional states later this year.
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