New home insurance ‘black box’ for water leaks could cut your bills by £56 a year

HOUSEHOLDS could cut their insurance bills by £56 a year by installing a home insurance “black box” for water leaks.

Water leaks are among the most common home insurance claims with £1.8million paid out every day, according to the Association of British Insurers (ABI).

But thanks to new technology, Brits can get alerted to water leaks as soon as they become an issue.

Installing a leak detector can cut your water bill and some insurers will now also reduce your bills.

Last year home insurer iGO4 teamed up with HomeServe Labs to launch what it claims to be the first “black box” home insurance product, using the LeakBot smart water leak detector.

Available through comparison site Compare the Market, IGO4 customers can get the technology installed for free and receive an average of £56 off their insurance policy.

Customers get the discount as the technology prevents significant water damage in homes, meaning iGO4 won’t have to pay out as much for claims.

LeakBot is clipped on to a water pipe situated by your mains stop tap, usually found under the kitchen sink.

It works by measuring the air temperature in your home and the water temperature in your plumbing system.

If you have a leak it will draw colder water from outside into your home, creating a consistent drop in temperature compared to the air temperature inside your home.

The gadget will react to this and will then alert you on the app.

At the click of a button, you can then arrange for a plumber to come and take a look at the leak.

Leakbot recently also partnered up with insurer Hiscox to offer the technology to new and current building insurance customers.

If you’re not with the insurers, you can buy the gadget yourself but it costs a hefty £149 so you’ll need to consider whether you reckon it’s worth it.

What are other water leak detectors?

Water leak detectors are not new, but common ones – moisture sensors and plumbed-in pipe fixtures – typically require more work or are more invasive to customers.

Moisture sensors work by placing several of them around your home in areas where you think you might get a leak.

While the plumbed-in options require cutting of the pipes and a full professional installation, meaning they’re more expensive.

Amazon sells water leak detectors with the prices starting from just 85p, but the cheapest one simply reacts once it comes in contact with water so it’ll not be the best option for everyone.

Instead, it could be worth asking your insurer whether it will reduce your premium if you install water leak technology.

One of LeakBot’s rivals called Roost requires you to place the devices in common locations where you might find leaks.

It’s only available through insurers including Aviva, Neos and OneCall Insurance in the UK, but the firm told The Sun it’s seen reduced home insurance premiums by around 5 per cent.

Will your home insurer reduce your premium?

The Sun contacted the UK’s major home insurers to ask whether they reduce premiums if customers have installed water leak detectors.

A spokesperson for LV= said it cuts the cost if customers have smart devices installed, but as the take up is currently low it couldn’t share how much premiums have been reduced by.

Axa told The Sun it currently doesn’t offer discounts for this kind of technology, but said it’s testing it to explore how it could reduce insurance claims and water bills.

Ageas and MORE TH>N also said it’s currently testing the technology, but couldn’t say if or when users could expect reduced premiums.

Aviva and Churchill added that they don’t offer reduced premiums because of water leak detectors, although the latter said that it might in the future.

A spokesperson for insurance trade body ABI added: “Any devices to help prevent water related damage are welcome.

“It is a commercial decision for insurers to determine how this would impact premiums, if you are considering installing the device speak to your insurer.”

What are the drawbacks?

One of the main drawbacks about the technology is that not all insurers offer it, so you’ll need to check with your provider directly.

It should give you a peace of mind, but unless your insurer offers discounts due to the technology, keep in mind that you’ll only enjoy reduced water bills if you actually suffer a leak.

At the same time, you’re unlikely to see your bills go up but you may be forced to fork out for the cost of installing the equipment.

So carefully consider whether you think it’s worth it before you go ahead.

You can find the best home insurance policy for you by using the tips in the box above.

Households in England and Wales are set to see an up to £110 drop in water bills over the five years between 2020 and 2025.

Yet three million households struggle to afford their bills, according to research in October.

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