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Smart home revolution

Smart home revolution

A smart home revolution is sweeping the nation, according to digital home insurer Policy Expert1, which has found that the number of households with a connected home device increased by 5% from 71% in October 2018 to 76%.

This is equivalent to an extra 1.36 million households2 purchasing a smart home device in the last nine months – more than the total number of households in Birmingham3. The average spend on smart home devices is £836 per household, with over a quarter (26%) of households with a connected home device spending over £1,000.

Total Spend (GBP) Percentage
£0-100 23%
£101-250 10%
£251-500 16%
£501-750 12%
£751-1000 11%
£1,000+ 26%

Figure 1: Estimates of spend on smart home devices

Meanwhile, the average household has four smart home devices, including smartphones, which is more than the average household size of 2.4 people per home4. This number is likely to grow in the coming months and years with the continued development and popularity of smart technology.

Smart home revolution shows no signs of slowing

The exponential growth in the popularity of connected home devices shows no signs of slowing in the next 12 months. Over the course of the next year, one in five (19%) households are considering purchasing a smart home hub, such as an Amazon Echo or Google Home device.

A further one in five (19%) households are considering buying a smart surveillance camera, while 17% are weighing up purchasing a smart doorbell in an effort to boost security and awareness of activity on their premises.

Adam Powell, Co-Founder and Chief Operating Officer of Policy Expert, commented: “The smart home revolution is taking the nation by storm and is set to continue for the foreseeable future. The industry is beginning to understand that smart home devices, such as leak detectors and advanced smoke alarms, benefit both consumers and insurers. These devices can detect faults and security risks early, reducing the likelihood of policyholders making a claim or reducing the cost of a claim by providing an early warning.

“While most households are being retrofitted with smart home devices, houses of the future will likely come with them built-in. Insurers will have to respond by adapting their policies to capture smart home devices. For example, this means ensuring that a customer is covered for theft if the burglar has gained entry to their home by hacking a smart door lock.

We are currently working on investigating the usability of voice-enabled quotations through devices such as Amazon Alexa, whereby customers gain a quote after a short yet specific question set. It would rely on data enrichment and various factors, however, it is not unreachable and supports our ethos to deliver our customer first-experience.”


  1. The findings are based on a survey conducted by Policy Expert among 6,463 of its customers in May 2019.
  2. ONS Families and Households: 2017.
  3. Birmingham City Council: 2018 Mid-Year Population Estimate.
  4. ONS Families and Households: 2017.

Media Enquiries:

Lewis Hill
+44 (0)20 7457 2020

About Policy Expert:

Policy Expert is the digital home insurer using proprietary technology and data insights to disrupt the General Insurance market through clear and transparent policies, fair pricing and attentive customer service – underpinned by complete control of the end-to-end process from pricing through to claims.

We have grown rapidly since 2010 to protect over 550,000 UK homes while redesigning the insurance experience to remove friction and put customers in control. Our agile approach and ‘customer first’ mindset have generated consistent growth and advocacy – making us one of the top 20 UK home insurers.

  • We are the most successful new entrant to the home insurance market in the last 10 years, with a proposition built for the mass market on a highly agile and scalable cloud-based platform
  • We have sold over 2.3 million home insurance policies during eight years of sustained annual growth
  • We were one of the first UK insurers to offer fixed rate premiums and Plain English accredited policies
  • Our management team has over 125 years of tech and insurance expertise from successful start-ups and household names
  • We have been recognised as the UK’s number one rated home insurer on Review Centre since 2013
  • We were voted ‘Home Insurer of the Year’ in 2017 and 2018 and have won multiple awards for our technology and customer service.