Using Leak Detectors to Cut Insurance Premiums

Imagine if you could buy an inexpensive gadget and turn it into a money-making asset.

Well it’s possible… and I’ve been trying to uncover those types of opportunities for you.

Here’s the latest…

Credit-Worthy Devices

Smoke/CO detectors and home security systems are example of devices insurance companies deem credit worthy.

Smoke and CO detectors are now mandatory in most building codes, but it was a process bringing this about.

Security systems are still a relatively new thing, especially the Wi-Fi and cellular-based systems.

If you have a security system, you can expect to get a reduction in your insurance premiums.

But what about leak detection devices?

We now have Wi-Fi enabled leak detection devices (thank you Internet-of-Things) that sound an alarm and send you an email when they encounter water.

Since appliance-related water leaks cause 19% of all home insurance claims (reference), I believe these devices should be credit-worthy as well.

The Failed Experiment

I called my insurance agent and asked if she would give me a discount if I installed leak detection devices in the bathroom and other areas that were historically know to cause major water damage.

My question was advanced up the ladder (or at least that what they said) and the answer that came down was “No, not at this time.”

So there is not yet a return on investment for these devices, but there is an indirect benefit for me.

My 95 year old father sometimes does things that cause his bathroom to flood. So I’ve placed a detector near his bathroom sink and next to his toilet.

The detectors help his caregivers quickly respond to any problems and minimize the damage. Also, the detectors sends email notifications to up to five recipients.  So whether or not my dad’s caregiver tells me of an incident, I feel that I’m doing my best to monitor my father.

ZIRCON Leak Alert Wi-Fi Detector

The Zircon smart water detector was very easy to set up.

I read through the instructions, made sure I had the Wi-Fi password handy, and got the device working within 10 minutes.

The sensor responds to a very small amount of water. A wet finger is all it takes to set the alarm off.

Since these devices only cost $45, I think they are well worth the money to potentially save thousands of dollar in repairs down the line.



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  1. Maria Aviles

    I had a water leak in one of my properties, so I looked into these systems as well. I already have the Simplisafe security system that I install in all my houses while I am renovating them. Simplisafe has water detectors, freeze sensors, smoke detectors, CO detectors, and others that all send you an alert. The best stand-alone system I found was the Honeywell Lyric system. There are water, freeze, and other sensors that work just like the Zircon detector. I like these systems better because they cover all the possible dangers in rental properties.There is also a professional-level system from Monni; the components are expensive but the monitoring is free.

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