Most homeowners would use sensors that monitor for water leaks and electrical fire hazards if their insurer provided them for free, but few currently have them, according to new research from Nationwide.
The survey found that only 25% of homeowners have water leak detectors or automatic shut-off systems, and 15% have devices that monitor for electrical fire hazards. However, 81% said they would be interested in using such devices if their insurer supplied them at no cost.
Independent agents also see value in the technology. Water leak detectors topped the list of prevention tools that agents believe could do most to reduce costly home claims, chosen by 39%. Automatic water shut-off systems came second, at 30%.
The research also surveyed agents on what surprises their clients after buying a home. Some 44% said clients were most surprised by how quickly unexpected costs add up after closing. Just over a third pointed to the cost of homeowners insurance (36%) and how often things break or need attention (34%). Some 42% said clients were surprised by how hard it was to find reliable contractors.
Among homeowners, 20% wished they had asked what repairs or upgrades would be needed in the first five years, and 17% wished they had asked about the age of the roof and major systems such as heating, plumbing and electrical.
Agents most often encouraged buyers to ask about local natural hazards and weather risks (46%), and to check for signs of water damage, mold or foundation problems (37%).
Many homeowners now expect to stay in their homes much longer than they planned. Two in five said they hadn’t expected their current home to be their forever home when they bought it, but now think it will be. At the same time, 38% said they would move if market conditions were better, rising to 64% among millennials.
Only 43% follow a preventive maintenance schedule, while 19% wait until something goes wrong.
“If you’re going to stay longer than planned, it becomes even more important to understand what parts of the home may need attention over the next several years and take steps now to help prevent avoidable damage,” said Helen Simonett, vice president of personal property lines at Nationwide.
For personal lines agents, the gap between interest in monitoring devices and actual adoption is an opportunity. Water damage is one of the most frequent and expensive homeowners claims. If insurers offer leak detection devices for free, agents can help close that gap by raising them at binding or renewal, rather than leaving clients to find them in an app.
Longer ownership also changes the conversation at renewal. Homes are ageing with the same owners, so roof age, plumbing and electrical systems become a bigger factor in both claims and underwriting. Agents who help clients plan maintenance and document upgrades, particularly roof replacements and resilience improvements, can help protect clients’ eligibility and pricing as carriers become more selective on older homes.
