Marius Kemp, Head of Personal Underwriting at Santam

As rapid technological advancement becomes embedded in everyday life, more households are embracing connected living. From smart geysers and leak detectors to integrated home security systems and automated lighting, technology is increasingly shaping how South Africans live and protect their homes. According to a recent global Deloitte study, 77% of consumers who have adopted smart home devices say that these technologies improve their overall quality of life.

While South Africa may still lag more mature markets in adoption, Marius Kemp, Head of Personal Underwriting at Santam, says that local appetite for broader smart home technology is steadily growing.

“From an underwriting and claims categorisation perspective, Santam is not seeing a distinct or separate surge in claims purely because a home contains smart devices,” says Kemp. “What has changed, however, is the value mix within claims, as modern homes now contain a higher concentration of electronic and connected devices compared to ten years ago.”

When it comes to insurance, however, Kemp says there is no fundamental difference. “Smart devices are insured in the same way as traditional devices under household contents or building cover, depending on whether they are movable items or permanent fixtures,” he explains. “Smart devices that can be removed such as hubs, cameras or control panels fall under household contents, while permanently installed devices such as smart geysers, built-in sensors or fixed control units are covered as part of the building.”

In many cases, the greater risk lies not in lack of cover, but in underinsurance. “As homeowners add more technology to their living spaces, the overall value of their contents, and sometimes the building itself, increases,” says Kemp. “Failing to update insured amounts accordingly can therefore result in claim shortfalls.”

This, he says, makes accurate disclosure and appropriate sums insured more important than ever. “Replacement costs for smart devices can be more expensive than older technology, which means replacement values may be higher. This reinforces the need for accurate sums insured.”

Interestingly, Kemp says smart homes do not necessarily introduce entirely new threats, and – in some cases – may even enhance a household’s risk profile. “Smart devices generally do not negatively change the insured risk profile. In many cases, they can improve risk management through early detection of leaks, faults or intrusions.

“Where smart technology demonstrably reduces risk such as monitored alarms or leak detection systems, it may support broader risk mitigation discussions, although discounts are not automatic,” he adds.

Ultimately, while smart homes introduce new layers of convenience and efficiency, they do not change the fundamentals of insurance. “There are no fundamentally new insured risks,” Kemp notes. “The same core perils apply. What differs is the dependency on integrated systems, which can lead to inconvenience if a system fails, but this does not change the underlying insured events under a policy.”

For homeowners looking to avoid insurance shortfalls, the most important step, according to Kemp, is to keep insurers up to date. “Inform your insurer or broker of any enhancements or upgrades that affect the value or risk profile of the home. This includes smart installations that increase replacement costs or form part of the building.

“There will be increased emphasis on disclosure, valuation and maintenance rather than the creation of new cover types,” he adds. “So regularly review your sums insured, keep records of upgrades and installations, and speak to your broker when making material changes to your home.”

While smart technology makes homes more efficient and comfortable, Kemp concludes that the fundamentals of property insurance remain unchanged. “Even as homes become more connected, the core principles of cover stay the same – the goal is not new insurance, but adequate and up to date insurance.”