Do Water Leak Detectors Earn a Home Insurance Discount? (Guide + Proof Packet)

Water damage is one of the most common—and costly—homeowners insurance loss categories. In U.S. homeowners data (2019–2023),
“water damage and freezing” shows a claim frequency of 1.50 per 100 insured homes and an average claim severity of about
$15,400.¹
That’s why some insurers encourage leak protection and may offer discounts, device credits, rebates, or partner programs.

Do leak detectors actually earn an insurance discount?

Sometimes. In the U.S., incentives typically fall into three buckets:

• Premium discount/credit (often under “loss mitigation,” “protective device,” or “smart home” categories)
• Device discount or rebate (reduced price on approved sensors/valves)
• Free kit / partnership program (insurer provides devices, sometimes tied to activation)

Real-world examples (U.S.):

• Allstate lists water leak detectors among items that can help you “save on insurance”
  (discount availability/amount varies).²
• Chubb notes clients can receive sensor discounts and may be eligible for policy discounts in select locations
  (state-dependent).³
• Nationwide + Phyn announced a program offering Nationwide customers a discount on Phyn water protection products
  (program details/eligibility vary).⁴
• VYRD (Florida) advertises free sensors and premium discount terms tied to activation, with effective-date conditions
  (always check the current program page).⁵

What kind of system insurers take seriously

Leak protection usually comes in three forms. You don’t need all three, but knowing the categories helps you buy what your insurer actually means.

Type	What it does	Why insurers care
Spot sensors (floor sensors)	Detect pooled water near fixtures/appliances	Low-cost early warning; common entry-level requirement
Whole-home monitors (main line)	Detect unusual flow patterns (continuous running, abnormal usage)	Helps catch hidden leaks and “running water” losses
Automatic shutoff valves	Shuts off water when a leak/abnormal flow is detected	Often the clearest “loss prevention” story; sometimes required

Where to place sensors (the locations that actually matter)

A good plan is boring: put sensors where leaks start most often and where damage spreads fast.
Travelers recommends placing smart water sensors near water-using appliances or plumbing fixtures like washers, dishwashers,
refrigerators, hot water heaters, sinks, and toilets.⁶

Priority placement list (typical U.S. homes):

• Water heater area (sensor on the floor next to the unit)
• Under the kitchen sink (back of cabinet near trap/valves)
• Dishwasher (under the front edge if you can’t reach the back)
• Fridge with ice maker/water line (near the supply connection)
• Washing machine (near supply hoses and drain)
• Bathroom vanity sinks (under each vanity if possible)
• Toilet base / supply line area
• HVAC condensate pan/overflow point
• Basement sump / floor drain area (if applicable)

If you only have 5 sensors

Use this simple plan (big-loss zones first):

• Water heater
• Kitchen sink
• Dishwasher
• Washing machine
• Upstairs bathroom/toilet area most likely to leak unnoticed

Alerts that prevent damage (not alerts you ignore)

A sensor only helps if someone sees the alert fast—and if you also catch device failures.

Turn on these notifications:

• Leak detected
• Sensor offline
• Low battery
• Hub offline (if your system uses one)

Make sure alerts reach a second person:

• Add a partner/family member as a user
• Enable high-priority/critical notifications (if supported)
• Add SMS/email backup if your system offers it

Testing and upkeep (what makes your setup “real”)

Once a month (5 minutes)

• Trigger one sensor with a small amount of water
• Confirm: local alarm + phone alert + second-user alert
• Check battery status and “last seen” timestamps

After any Wi-Fi change

• Confirm sensors reconnected
• Re-test one sensor (this is where many setups silently fail)

How to ask your insurer (and get a clear answer)

Ask before buying if a discount matters.

Copy/paste message:

Do you offer a discount or credit for water leak detection or automatic shutoff?
What qualifies: spot sensors, a whole-home monitor, an automatic shutoff valve, or only approved devices?
What proof do you need—photos, model numbers, install invoice, or a certificate?

If they say “approved devices only,” ask for the approved list in writing.

What to document (so the discount actually applies)

Create one folder called Water Leak Protection Proof with:

• Photos of installed sensors (wide shot showing location)
• Close-up photo of the model label on each sensor
• Photo of any main-line device/shutoff valve (plus invoice if pro-installed)
• App screenshot showing devices connected/healthy
• Activation date (note it in your log)

Then check your declarations page or billing statement at the next cycle to confirm the discount/credit was applied.

Quick FAQ

Will one sensor by the water heater qualify?
It reduces risk, but some insurers want broader coverage or a main-line device. Ask what their minimum is.

Do I need automatic shutoff?
Not always, but it’s the clearest “loss prevention” story because it can stop a major leak while you’re away.

Do leak sensors replace coverage?
No. They’re prevention. Policy terms still control what’s covered.

What about sump pump failure or sewer backup?
That’s different. Sensors can warn you, but you may need separate endorsements for certain backup losses.

References

1. Insurance Information Institute (III). “Archived Tables — Homeowners and renters insurance (2019–2023 averages).”
   Source
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2. Allstate. “How to Get Homeowners Insurance Discounts” (lists water leak detectors among items that can help you save).
   Source
   ↩
3. Chubb. “Water Coverage” (sensor discounts; policy discounts only in select states/locations).
   Source
   ↩
4. Nationwide Newsroom. “Nationwide and Phyn Partner to Offer Advanced Water Damage Protection…” (discount offer details).
   Source
   ↩
5. VYRD. “FREE Smart Home Water Protection” (free sensors + discount terms tied to activation; effective date conditions).
   Source
   ↩
6. Travelers. “How Water Sensors Can Help Prevent Costly Water Damage” (placement guidance near appliances/fixtures).
   Source
   ↩

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Disclaimer: This is general information, not insurance advice. Discounts and eligibility vary by insurer, policy, and location.