OK, let’s be honest, we all love a freebie. It could be a free Amazon or M&S voucher, or perhaps a Parker pen from that nice bloke who used to do the chat shows. But how about a leak detector?
Well, new research from tech start-up Hero Labs suggests insurers that offer policy discounts to customers who have installed a smart leak defence system could gain customers and improve loyalty.
Almost two-thirds (65%) of consumers say they would switch home insurer if they offered a discount for installing a smart leak defender in their home.
Smart leak defenders are smart tech devices that monitor water flow in the home and allow homeowners to switch off the water supply if they detect unusual activity that indicates a leak. By catching and addressing leaks early, homeowners can prevent lasting damage to their home. This reduces the likelihood that they will need to make a claim on their home insurance, which could save insurers millions – every year the insurance industry forks out £657 million for domestic escape of water claims.
These systems are growing in popularity in the U.K. – 43% of households say they plan to install one in the next three years. This is because more than two fifths (44%) have had a leak in their home, which took 12 days to detect on average. Small, hidden leaks were the most common (31%), meaning the vast majority of consumers (81%) only discovered the leak when it had already caused damage, such as water stains, a collapsed ceiling or soaked carpet.
The research also found that 56% would be more loyal to their insurer if they were proactive and invested in their property by supplying technology such as a smart leak defender, for free.
Krystian Zajac, founder and CEO of Hero Labs, said: “Escape of water claims cost insurers millions every year, yet the majority offer customers no benefits if they decide to protect their home against leaks with the latest smart home technology. As more careful consumers look to install devices like smart leak detectors in their homes in the coming years, insurers that fail to offer rewards will see customers vote with their feet.”