Insurance · Updated August 1, 2026
Water damage is the most common homeowners insurance claim in the country — more than fire and theft combined. That's exactly why a growing list of carriers will knock money off your premium just for having a monitored leak detector installed.
Coverage and discount programs vary by state, zip code, and policy — nobody should take the numbers below as a guarantee for your specific policy. But as a general picture of what's out there in 2026:
| Carrier | Program | What's required |
|---|---|---|
| Nationwide | Phyn partnership, launched Dec. 2024 | 15% off Phyn's product line (Phyn Plus, Smart Water Assistant, Smart Water Sensor) for eligible high-value-home policyholders. Started in California, expanding by state — confirm availability in yours. |
| USAA | Connected Home program | At least two water leak detectors from approved brands (Roost, First Alert, Honeywell Home), with usage data shared through the app |
| Farmers | Leak detection partnerships | Works with providers like Moen Flo; discount tied to having an approved monitoring or shutoff system installed |
| Hippo | Complimentary smart home kit | Hippo provides the monitoring system as part of the policy — you just need to keep it active |
| State Farm | Smart home discount, and required in some states | In California specifically, State Farm has mandated smart shutoff devices for some policies rather than just discounting them |
| Amica | Smart home device discount | Covers a range of devices including leak detectors, alongside security and temperature monitoring |
Programs and requirements change — the table above is a starting point for what to ask about, not a substitute for calling your actual carrier. Nationwide separately offers Ondo Insurtech's LeakBot device through a different program in 16 states, so ask specifically about Phyn if that's the discount you're after.
You'll see bold stats in these partnership announcements — Phyn has cited a study claiming homes with its system are 99% less likely to file a non-weather water damage claim, based on roughly 13,500 homes tracked over three years. Worth knowing where that number comes from: it's a study Phyn itself commissioned about its own product, not independent research. That doesn't make the underlying idea wrong — a monitored shutoff system genuinely should prevent most claims that come from undetected leaks running for weeks — but a vendor's own study isn't the same as third-party verification, and it's a distinction most sites promoting these partnerships don't bother making.
Expect somewhere between 3% and 10% off your premium for a basic monitored sensor, and closer to 7–10% or higher if the system includes automatic shutoff — insurers reward the shutoff feature more heavily because it doesn't just alert you, it actively stops the damage. On a fairly typical $1,500 annual premium, that's roughly $45 to $150 a year. That's real money, but it's rarely enough by itself to justify buying the hardware — think of it as a bonus on top of the actual point of these devices, which is not filing a claim in the first place.
This is the step almost everyone skips, and it's the one that actually matters. Carriers frequently require specific brands, specific device categories, or a certain number of sensors — buy the wrong thing first and you might own a good leak detector that simply doesn't qualify for any discount at all. A five-minute call or a look at your policy's smart home discount page before purchasing can save you from that.
Ask your agent three things directly: which brands or device categories qualify, whether you're required to share usage data through an app, and whether the discount needs to be renewed or re-verified periodically rather than applying once and staying forever.
Most homeowners policies cover sudden, accidental water damage — a pipe that bursts — but not damage from a slow leak that ran for weeks or months, which insurers often classify as a maintenance issue instead of an accident. A monitored sensor doesn't just chase a discount; it's what turns a slow leak into something caught in minutes instead of something that becomes an uncovered claim. See our leak detector guide for specific picks, several of which are recognized by the major carrier programs above. For the fuller picture on what insurance does and doesn't cover when a leak actually happens, see is water leak detection covered by insurance? And if you're already dealing with damage, see our breakdown of whether filing a claim is actually the right call.
FAQ
Typically 3–10% for a basic sensor, 7–10%+ with automatic shutoff — around $45 to $150 a year on a $1,500 premium. Real money, but not the main reason to buy one.
Often, yes — several carriers only recognize certain partner brands. Confirm the exact model with your insurer first if the discount matters to your decision.
Usually. Most programs require connecting the device to their app so they can confirm it's actually installed and active.
Ask anyway — many carriers are rolling out smart home discount programs faster than they're advertising them.
Depends on how long it ran — sudden damage is usually covered, but a silent leak going for weeks is more likely treated as a maintenance issue. Our free dye test catches it before that becomes a problem.