"In search of evidence of the predictive and preventative value of incorporating smart home technology and IoT data into underwriting strategies, LexisNexis® Risk Solutions worked with Flo by Moen to study residential water damage claims, which are the most significant source of preventable homeowners insurance claims. The research compared the claims activity of 2,306 U.S. homes with a Flo by Moen Smart Water Shutoff leak detection and water monitoring system to similar claims activity for a cohort of U.S. homes of similar geography, price and size without a Flo by Moen Smart Water Shutoff. The results were very enlightening. They point to a strong correlation between the installation of Flo by Moen Smart Water Shutoffs with fewer and lower-severity claims. They also support the broader benefits of smart home technology and smart home insurance programs, for both carriers and consumers. In short, carriers that embrace smart home technology and communicate the benefits of these devices to their customers have an opportunity to not only bolster their loss prevention strategies but to also create a competitive advantage through increased customer loyalty."
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