How IoT is changing the definition of home security
Innovation is providing homeowners with new ways to monitor what happens even when they aren’t home.
The Internet of Things (IoT) has transformed the way we live our daily lives, requiring slow-moving industries, such as insurance and home security, to kick into overdrive when it comes to innovation; we’ve reached a critical time when companies are being challenged to innovate new product offerings that meet the needs of the consumer.
Take traditional TV for example. The television industry was turned on its head when over-the-top (OTT) providers like Hulu Live, DirecTV Now (DirecTV), and Sling TV (Dish Network) entered the market. Customers were quickly canceling their expensive, long-term cable contracts to opt-in to a cheaper, contract-free option that also gave them the ability to watch live TV from anywhere. As OTT TV and streaming services, like Netflix, gained traction, it not only changed the way people consumed content, it also changed the development and distribution of content. Similar to the trend traditional pay-TV saw, the old school home security model is now facing consumers’ demands for more value and flexibility at a much lower cost.
New options for home security
When considering these consumer demands and the continued reliance on technology, it’s easy to see why traditional home security (like traditional TV) needs an overhaul. The old business model is no longer relevant — expensive equipment, assertive salespeople, long-term contracts and little flexibility are all reasons why 20% of U.S. households have a home security system. According to Statista, the number of homes using smart home security devices are expected to increase by 88.8% from 29.9 million devices in 2017 to 46.5 million by the end of 2019. By 2023, an estimated 104.1 million devices will be in homes across the country.
Just like how we monitor our homes is changing, so is the need for what we monitor. Traditional home security is often associated with deterring theft and alerting for fires, and that’s it. Now, with what smart home security systems can do, home security goes beyond just keeping would-be burglars at bay.
According to the FBI’s 2017 Uniform Crime Report for property crime, burglary — which only comprised 18.2% of estimated property crimes — declined 7.6% compared to 2016. A downward trend in burglaries doesn’t mean protecting against intruders isn’t vital in home security, however, it does mean our home security systems should be monitoring for more than break-ins.
Home security companies should help protect the home in a holistic way from the inside out, giving consumers the chance to keep an eye on their homes from anywhere, act immediately when an issue arises, and monitor for opening and closing doors, temperature, sounding alarms and water leaks.
According to the Insurance Information Institute, in 2017, water damage and freezing were the second most frequent reason homeowners filed an insurance claim (preceded only by wind and hail damage) while theft came in fourth. Water may not be the typical intruder considered when weighing home security options, but it should be. Leaks and flooding happen more frequently and tend to cost more in damages than theft. Water is often an after-thought for most homeowners who haven’t had to deal with clean up and repair of its damage before, however, those who have dealt with a flooded basement know how expensive it can be. HomeAdvisor (a partner of Notion) estimates the cost of draining, drying and repairing a flooded basement can run as much as $10,000 in extreme cases — that’s a high price for a problem that could be resolved as soon as it started with the proper security monitoring in place.
As home security continues to evolve, so does what it means to be a good homeowner. With smart home security systems, homeowners are empowered to be proactive against potentially costly problems and have easy access to tools to help them deal with an issue as soon as it is detected. The continued advancements in IoT will help elevate new services and products offered to homeowners by way of a new definition of home security.
Brett Jurgens is the co-founder and CEO of Notion, a comprehensive home monitoring and security system that’s working to simplify people’s lives with smart home technology and services to support proactive home maintenance. Contact him at Brett.Jurgens@getnotion.com.
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