Smart Home Insurance: Are Your Smart Devices Covered?

Smart devices can fall under contents insurance, building insurance, or Equipment Breakdown cover, sometimes all three, depending on what you’ve got and how it’s installed. Here’s what you need to know.

What is smart home insurance?

Smart home insurance isn’t a standalone product. It’s a term used to describe how standard home insurance, building and contents, applies to the connected devices and systems in your home.

What that means in practice: your connected devices are likely covered under your existing home insurance policy, but the type of cover that applies, and whether you’re fully protected, depends on what you’ve got installed, how it’s set up, and what add-ons you have in place. The sections below break it all down.

Do home insurance policies cover smart devices?

Short answer: usually yes, but it depends on the device, the type of damage, and your policy.

Smart devices, part of what’s often called the connected home, link up via wifi and let you monitor and control things remotely. Most standard insurance cover treats them like any other possession. But which type of cover applies depends on how the device is installed and what’s gone wrong.

With Lemonade, smart home technologies in the UK are covered under the Equipment Breakdown endorsement as part of the dwelling insurance policy, similar to other electrical or mechanical equipment. Specific coverage details can vary, so it’s always worth checking your policy or getting in touch if you’re unsure.

Contents vs building insurance: what’s the difference?

Not all smart devices fall under the same type of cover. Here’s a quick breakdown of what sits where.

	Contents cover	Building insurance
What it covers	Things you’d take with you if you moved house	Things fixed to the structure of your home
Smart devices that typically apply	Smart speakers, video doorbells, thermostats, indoor cameras, smart light bulbs, smart lighting systems	Hardwired cameras, smart locks, integrated smart lighting, centralised security setups
Things to watch out for	Single-item limits on high-value gadgets	Grey areas around what counts as ‘fixed’ vs portable

Not all home insurance providers treat smart technology the same way. They assess each case individually, taking into account not just the presence of connected devices, but how they’re maintained and integrated.

What about accidental damage?

Accidents happen. If you’re worried about unexpected damage to your home’s structure, think a burst pipe taking out your smart heating system, or damage to fixed glass, Lemonade’s Accidental Damage add-on has you covered.

It covers unexpected and unintentional damage to the structure of your home caused suddenly by you or something external, including sanitary fittings, fixed glass, underground drains, pipes, and cables. Coverage goes up to £2,000 per event.

One thing to note: this add-on covers the structure of your home, not your portable devices or mobile devices. For portable devices, you’ll need a separate Accidental Damage to Contents add-on, and for mobile devices specifically, the Accidental Damage to Mobile Devices add-on. These work alongside each other, so it’s worth making sure you’ve got the right combination for your setup.

What if it’s a home emergency?

Sometimes things go wrong fast, a broken boiler in January, a damaged door lock late at night. Lemonade’s Home Emergency add-on gives you round-the-clock access to specialists, plumbers, electricians, locksmiths, who can get things sorted quickly.

For connected home owners, this is particularly useful. A malfunctioning smart lock or hardwired system can become a security issue fast, and having emergency cover means you’re not left scrambling at midnight.

You can also add Legal Assistance cover, which provides specialist legal assistance for disputes related to your insured home, handy if a contractor damages your smart home installation and you need to pursue a claim.

Can smart devices affect the cost of your home insurance?

Possibly, but it depends on your insurer. The logic is straightforward: when you install a smart smoke detector, a leak detector, a security camera, or other connected devices, you’re actively reducing the likelihood of making home insurance claims. A smart security camera might deter a burglar; a leak detector could prevent costly water damage before it starts.

It’s worth noting that Lemonade does not currently offer a discount for having smart security or security devices. Not all insurance companies are ready to reward customers for implementing smart tech yet, and the market is still catching up, even as the connected home becomes mainstream. It’s always worth asking your insurer directly.

The devices most likely to make a difference

Leak detectors

Escape of water accounts for around 25 to 30% of all home insurance claims, with insurers paying out approximately £1.8 million every day for escape of water damage. A leak detector, fitted under your sink or near your washing machine, can catch a damaged pipe early, long before it turns into something much more expensive.

Smart security cameras and alarms

Smart cameras and motion sensors let you monitor your property inside and out, and send alerts if there’s a break-in. They can also provide valuable evidence when making home insurance claims. With better security, there’s a lower likelihood of theft-related claims, which some insurers factor into pricing.

Smart locks

Smart locks allow remote access management and send alerts when someone enters your home. They make it significantly harder for a burglar to get in. And if your lock ever fails unexpectedly, Lemonade’s Home Emergency add-on means you can get a locksmith out around the clock.

Smart lighting and smart thermostats

Smart lighting, including connected light bulbs that can be scheduled or triggered remotely, can make your home look occupied when you’re away, which is a simple deterrent against opportunistic crime. Smart thermostats, meanwhile, help manage heating during cold months when properties are empty, reducing the risk of frozen pipes and the home insurance claims that follow.

What to look for when comparing home insurance

When shopping around or reviewing your existing insurance cover, check for:

• Whether connected devices are mentioned explicitly. Some policies call them out, others lump them in with general contents
• Equipment Breakdown cover: this is where hardwired or installed smart home devices are most likely to sit
• Single-item limits: high-value gadgets may need to be listed separately
• Contents vs building distinction: especially for anything fixed or hardwired
• Accidental Damage add-ons: building, contents, and mobile devices are separate. Make sure you’ve got the right one, or the right combination
• Home Emergency cover: worth adding if your setup relies on smart locks, connected alarms, or integrated systems
• Legal Assistance cover: useful if you ever face a dispute involving your property or smart home installation
• How your alarm is classified. Some insurers ask whether your system was installed by a body like NACOSS or SSAIB, which can influence your premium

When getting a home insurance quote, be upfront about what you’ve got installed. That includes smart lighting, cameras, smart locks, and any hardwired systems. It helps the insurer give you an accurate price and makes sure you’re not underinsured when you need it most.

Before you go

Smart home technology and insurance are converging, slowly, but it’s happening. The savvy move is to review your existing insurance cover, flag your connected devices to your insurer, and ask whether any of your kit qualifies for a discount.

Lemonade’s home insurance is built to be transparent and easy to understand, whether you’ve kitted out your flat with connected devices or you’re just getting started. Get a home insurance quote online and see exactly what’s covered.

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