American Family announced last week that it was exploring a Neos-enabled “smart home insurance” concept years ago; since then, Neos has been fully acquired by Aviva, and there is no current U.S. operating partnership between American Family and Neos. Aviva completed the acquisition of Neos in 2020, and UK corporate records confirm Neos Ventures Ltd. under Aviva’s control (Companies House). American Family’s recent newsroom content shows no new Neos product announcements in the U.S. (AmFam Newsroom).
In the broader market, smart‑home‑linked homeowners coverage has matured into widely available discounts and prevention services offered by multiple carriers—focusing on water‑leak mitigation, electrical fire‑hazard monitoring, and professionally monitored security. This shift aims to move insurance “away from being a payout industry to one that can help prevent claims,” as Neos CEO Matt Poll puts it, and is reflected in large‑scale U.S. programs highlighted by carriers such as State Farm. Most implementations use opt‑in, purpose‑specific data with “data‑light” verification guided by evolving AI governance expectations from regulators like the NAIC.
But we were left with the question: What exactly is “smart home insurance,” and how does it work? Today it generally means premium credits for qualifying protective devices plus optional, carrier‑funded devices/services (for example, leak sensors, automatic water shutoff valves, or electrical fire‑hazard monitors). Adoption is enabled by mainstream smart‑home ownership—Parks Associates reports that 54% of U.S. internet households owned at least one smart‑home device in early 2024—yet actual insurer program enrollment remains a minority share of homeowners, concentrated where carriers subsidize devices and show measurable loss prevention (LexisNexis Home Trends 2024; Whisker Labs Ting).
“Think about it this way: the more verifiable protection your home has—and the more timely alerts you receive—the more precisely insurers can price and help prevent losses, typically without streaming detailed, always‑on home telemetry.” In practice, carriers verify eligibility via proof‑of‑installation, monitoring certificates, or program enrollment rather than ingesting raw device feeds, aligning with consent‑driven, minimal‑data approaches encouraged by the NAIC AI Model Bulletin and state privacy initiatives such as California’s proposed ADMT rules.
Take theft coverage as an example. Theft is covered by homeowners insurance, and many carriers offer protective‑device credits. The Insurance Information Institute cites typical savings of about 5% for basic devices (smoke detectors, deadbolts) and around 15–20% for centrally monitored fire/burglar alarms or sprinkler systems. Exact credits are state‑filed and vary by carrier; for example, State Farm publicly lists a Home Alert Protection Discount with amounts that vary by state and risk profile (details).
How does an insurance company know your house is safer and more secure than someone else’s house? Most rely on documentation rather than continuous data: proof of central‑station monitoring, device activation/registration, or ongoing program participation. Credits can be adjusted or removed if monitoring is discontinued. These practices reflect “data‑light verification” and state‑by‑state rules, along with AI/analytics oversight expectations outlined by the NAIC and privacy proposals like California’s ADMT. Carrier pages typically note that discount availability and amounts vary by state (example).
But if your insurer can verify that you have high‑impact protective tech—such as water‑leak sensors with an automatic shutoff valve, professionally monitored security, a smart thermostat with freeze detection, or electrical fire‑hazard monitoring—then they can be more confident your home is protected. Many carriers now pair premium credits with subsidized hardware or services. Examples include State Farm offering the Ting electrical fire‑hazard monitoring service to eligible customers at no cost (program overview), Travelers’ educational and eligibility resources for Ting (Travelers + Ting), and standard protective‑device discounts at carriers like American Family (AmFam discounts). Where available, professional security bundles (e.g., the ADT–State Farm collaboration) can also qualify for monitored‑alarm credits subject to state rules.
With earlier U.K. connected‑home offerings, Neos maintained networks of service professionals to help fix issues before they became claims. In today’s U.S. market, prevention programs often include access to vetted trades: Ting identifies electrical hazards and coordinates remediation guidance—and, where needed, assistance from licensed electricians—across insurer partners (Whisker Labs insurance programs). For water risks, insurers and partners increasingly pair sensors with preferred plumbers and streamlined repairs, supported by vendor case studies showing meaningful loss reductions.
For instance: Imagine you have a smart leak detector in your basement. If a pipe springs a leak, the sensor will alert you so you can act before it escalates—potentially saving your insurer a few thousand dollars in payouts and helping you avoid a claim. Industry trend data show that non‑weather water losses remain elevated, reinforcing why carriers prioritize leak detection and automatic shutoff (LexisNexis 2024). Vendor‑reported insurer deployments of LeakBot, for example, cite up to roughly 60% reductions in non‑weather water claim frequency and about 70% reductions in severity after device installation and remediation programs (LeakBot case studies).
Neos foots the bill on these types of emergency repairs for U.K. customers with its top‑tier packages in that market; in the U.S., carriers more commonly subsidize preventive devices and services rather than broadly covering repair costs. For example, eligible State Farm customers can receive the Ting device/service at no cost (details), and Travelers provides a Ting information hub for its customers (program info). Specific benefits, eligibility, and any credits vary by state and underwriting company.
All in all, smart‑home‑enabled homeowners insurance in the U.S. has moved beyond pilots: large carriers now run scaled prevention programs (notably electrical fire monitoring and water mitigation), and several million policyholders are eligible for some form of device subsidy or discount—though active participation is still a subset of eligibles. Impact reporting from the Ting program highlights widespread hazard detection and avoided fires among participating homes (program impact). Separately, there is no current American Family–Neos operating partnership in the U.S.; Neos is part of Aviva’s U.K. business (Aviva acquisition).
“The most important thing is that we add value for our customers,” now translates into prevention‑first offerings with transparent, opt‑in data use, minimal data collection, and clear benefits amid premium pressure. J.D. Power’s 2024 U.S. Home Insurance Study underscores that affordability concerns weigh on satisfaction, so carriers are leaning on device incentives and measurable hazard remediation to bolster perceived value. Programs also align with cybersecurity and governance expectations (for example, New York DFS’s enhanced cybersecurity rules and the voluntary U.S. Cyber Trust Mark for IoT devices) to build trust.
That will hopefully entail a variety of device options, a choice between DIY or professional installation, easy access to service professionals, and other personalized options for bundling your insurance and smart home systems. Interoperability improvements such as Matter 1.4 (Oct 2024) reduce setup friction across brands and ecosystems (CSA Matter 1.4), while partnerships like ADT–State Farm show how professionally monitored security can be integrated. Expect ongoing emphasis on verified, high‑impact perils (non‑weather water; electrical fire) and eligibility checks such as monitoring certificates or device activation proofs, with credits and subsidies tailored by state and risk segment.
For more information about smart home devices and product recommendations, see:
How to Keep Your Smart Home Secure
The Best DIY Home Security Systems
The Best Smart Smoke and CO Detectors
The Best Video Doorbells
