By James Walker | Home Automation & Security Editor
Quick Answer: Smart locks do not automatically void home insurance. In most cases, insurers view smart locks neutrally or positively. However, coverage decisions depend on your specific policy, your insurer’s stance on modifications, and whether the lock meets ANSI/BHMA grade standards. Always notify your insurer of significant home upgrades.
If you’re thinking about installing a smart lock, you’ve probably wondered whether it could affect your homeowners or renters insurance. It’s a fair concern — any time you change how your home is secured, it makes sense to ask whether your policy still applies. This article walks through what insurers actually look at, what the research and industry guidance say, and how to handle the conversation with your insurer before you swap out that deadbolt.
Home Security Coverage
Policy Considerations
ANSI Grade Ratings
Smart Home Safety
Disclaimer: This article is for general educational and purchasing guidance only. It does not guarantee security outcomes or replace advice from a licensed installer, electrician, or security professional. Insurance policy terms vary widely between providers. Always review your specific policy documents and speak directly with your insurer or a licensed insurance professional before making coverage decisions. Some installations may require compliance with local building codes or lease agreements.
What Insurers Actually Look At When You Install a Smart Lock
When you file a claim or update your home policy, your insurer isn’t looking for a list of smart devices — they’re evaluating the overall security level of your property. Most standard homeowners insurance policies assess risk based on the physical quality of your locks, whether a monitored alarm system is present, and how your home is constructed. A smart lock doesn’t automatically trigger a red flag.
What can matter is whether the lock you install meets accepted physical security standards. Most insurers that care about lock quality look for ANSI/BHMA Grade 1 or Grade 2 certification, which reflects how well a lock resists forced entry, pick attempts, and wear. A smart lock that meets Grade 1 standards is typically viewed as at least as secure as a quality traditional deadbolt — and in some cases, your insurer may consider it an upgrade.
Note: ANSI/BHMA grading applies to the physical lock mechanism — the bolt, cylinder, and hardware — not to the app, Bluetooth radio, or keypad. When comparing smart locks for insurance purposes, look for the ANSI grade on the lock’s spec sheet, not just its smart-home feature list.
Smart Lock vs. Traditional Deadbolt: Insurance-Relevant Comparison
Before choosing a smart lock, it helps to understand the basic steps involved — from research to informing your insurer. The flow below covers what most homeowners go through when adding a smart lock and what to do at each stage.
Smart Lock Setup Flow — From Research to Insurer Notification
Confirm door thickness, backset, and existing deadbolt hole size. Most smart locks fit standard US 2-3/8″ or 2-3/4″ backsets.
Choose Grade 1 (highest) or Grade 2 for best security coverage. Avoid models with no published grade.
Most smart locks replace existing deadbolts without drilling. Follow the manufacturer’s instructions carefully. If your door needs modification, consider a professional.
Set a strong password, enable two-factor authentication if available, and update firmware immediately after setup.
Call or email your insurance provider to document the upgrade. Ask whether it qualifies for a home security discount.
Save receipts, photos of the installed lock, and any email confirmations from your insurer in case you need them later.
Following this flow helps ensure your smart lock upgrade is documented properly — both for security purposes and for any future insurance interactions.
Can a Smart Lock Actually Lower Your Insurance Premium?
Some homeowners find that adding a smart lock — especially when paired with a professionally monitored security system — may support a modest discount on their home insurance. The key phrase here is “may support,” because results vary significantly between insurers and individual policies.
Insurers that offer home security discounts typically look at whether you have a monitored alarm system, smoke detectors, deadbolts on exterior doors, and in some cases smart home security integrations. A smart lock alone is unlikely to trigger a premium reduction, but when it’s part of a broader smart security setup — including video doorbells, motion sensors, and central monitoring — some insurers view the overall setup favorably.
According to guidance published by the Insurance Information Institute, home security systems can contribute to premium reductions in the range of 5% to 20%, though the specific amount depends entirely on the insurer and the extent of your security setup. These figures are general industry observations, not guaranteed outcomes, and you should ask your specific insurer directly what qualifies.
Tip: When calling your insurer about a discount, mention both the smart lock model and its ANSI grade. Also ask whether combining it with a monitored alarm system (such as one connected to a central station) might qualify for a larger reduction. Keep the conversation documented in writing.
Smart Lock Insurance Concerns: Problem vs. Likely Explanation
One common question is whether to go with a cloud-connected smart lock or a more locally operated model. This decision can affect both privacy exposure and how your insurer views your setup.
Privacy Decision Path — Cloud vs. Local Smart Lock Operation
YES → Cloud-Connected Lock
Lock sends data to manufacturer servers. Remote locking/unlocking via app. Requires strong password, 2FA, and regular firmware updates. Some insurers may view remote monitoring as a positive feature.
NO → Bluetooth / Local-Only Lock
Operates via Bluetooth proximity or keypad only. No data leaves your home network. Lower digital exposure. Limited to on-site access. Often more straightforward from an insurance standpoint.
Neither option is inherently better for insurance purposes. The physical grade of the lock and your insurer’s specific policies matter more than whether it connects to the cloud.
The Cyber Security Angle: What Standard Policies May Not Cover
This is one area where competitors’ content tends to go thin, and it’s worth explaining clearly. A standard homeowners insurance policy is written around physical events — fire, theft, vandalism, water damage. If someone physically breaks into your home, your policy generally responds. But if someone gains access to your smart lock through a software exploit or a compromised password — and then enters your home — the claim picture gets more complicated.
Some standard home policies do not explicitly address digital intrusion as a covered event. As smart locks, smart doorbells, and connected security cameras become more common, this gap in standard policies is something to ask your insurer about directly. A few insurers now offer optional cyber coverage riders that address digital access exploits on connected home devices.
The Cybersecurity and Infrastructure Security Agency (CISA) recommends that smart home device owners use unique strong passwords, keep firmware updated, and segment IoT devices onto a separate Wi-Fi network. These are steps that can reduce your exposure to digital access risks and may be worth mentioning to your insurer as part of your overall security posture. For more on securing connected devices, CISA’s guidance is available at cisa.gov.
Warning: Do not assume your standard home insurance policy covers theft that results from a digital exploit of your smart lock. Read your policy’s definitions of “burglary” and “break-in” carefully. If those definitions require signs of forced physical entry, a theft via digital access may not meet the coverage threshold. Ask your insurer directly and consider a cyber rider if available.
Safe Smart Lock Setup vs. Risky Setup — Insurance and Security Implications
Renters: Special Considerations Before Installing a Smart Lock
If you rent your home or apartment, the question of smart locks and insurance has an extra layer: your landlord. Most lease agreements include clauses about modifications to the unit, and replacing a lock — even a deadbolt — may technically require landlord approval. Installing a smart lock without permission could put you in violation of your lease, which could in turn affect your renters insurance coverage if a claim involves the modification.
If you do get your landlord’s approval, look for smart locks that retrofit onto the inside of your existing deadbolt without replacing the exterior hardware. These models, sometimes called deadbolt adapters or interior retrofit locks, leave the landlord’s key cylinder intact while adding smart functionality on the inside. They’re often an easier sell for landlords and typically don’t raise the same lease modification concerns.
On the renters insurance side, the good news is that most renters policies cover your personal property regardless of the lock type on your door — as long as there are no signs of negligence or intentional disregard. That said, if you install a non-ANSI-rated lock that clearly weakens your door security, and a theft occurs, an adjuster could raise questions about reasonable care.
Whether you own or rent, the following checklist can help you spot situations where your smart lock setup may need attention — either for security reasons or to avoid insurance complications.
Red-Flag Checklist — Smart Lock Setup Warning Signs
⚠ No ANSI Grade Published
If the manufacturer doesn’t list an ANSI/BHMA grade, the lock’s physical security is unverified. This can be a concern for insurers who check lock ratings during a claim.
⚠ Default Password Still Active
Using the manufacturer’s default credentials is one of the most common and avoidable security mistakes. Change it immediately after setup.
⚠ No Backup Entry Method
If your lock depends entirely on a charged battery and working app, a failure could leave you locked out. Always have a physical key or secondary entry option.
⚠ Insurer Never Notified
Failing to inform your insurer of a significant home modification — even a generally safe one — can create friction during a claim. Document the upgrade proactively.
⚠ Firmware Never Updated
Outdated firmware may contain known vulnerabilities. Enable auto-updates and check the manufacturer’s security bulletin page periodically.
⚠ Installed Without Lease Approval
Renters who modify locks without landlord consent may violate their lease. This can complicate both your rental agreement and any renters insurance claim.
If any of these warning signs apply to your current setup, addressing them now — before a claim is ever needed — is the practical approach.
Smart Lock Options Worth Considering
If you’re looking for a smart lock that may support your home security routines, here are a few models that are commonly discussed for their ANSI grade, backup entry options, and overall build quality. These are practical suggestions based on widely available specifications — always verify current ratings and compatibility with your door before purchasing.
Schlage Encode Plus Smart WiFi Deadbolt
A widely cited ANSI Grade 1 certified smart lock with built-in Wi-Fi and Apple HomeKey support. Includes a physical key backup and has no additional hub requirement — which may make it straightforward to document for insurance purposes.
August Wi-Fi Smart Lock (4th Generation)
A retrofit-style smart lock that attaches to the interior of your existing deadbolt, leaving your exterior hardware — and any landlord key cylinder — intact. This may make it a practical option for renters who want smart access without lease modification concerns.
Smart Lock Fit by Homeowner Type
To get a clearer picture of how different smart lock types match different home security priorities, the dashboard below summarizes relative fit across common homeowner scenarios. These ratings reflect general practical guidance — not official insurer policy criteria.
Smart Lock Type Fit Dashboard — Practical Guide (Not Official Ratings)
ANSI Grade 1 Wi-Fi Deadbolt
Best fit for homeowners wanting full smart access with documented physical security
Insurance friendliness: Very High
Interior Retrofit Adapter
Best for renters; leaves original exterior hardware intact and reduces lease friction
Insurance friendliness: Moderate-High
Bluetooth / Local Lock (No Cloud)
Lower digital exposure; simpler setup; ideal for privacy-first users
Insurance friendliness: Moderate
Z-Wave Lock + Monitored Alarm Hub
Strongest overall security profile; most likely to support a home insurance discount
Insurance friendliness: Very High
The bars above reflect typical practical fit guidance and not any insurer’s specific criteria. Always verify with your insurer which setup elements, if any, qualify for a discount or improved coverage terms.
What Experienced Smart Home Users Check That Beginners Often Miss
Most beginners focus on getting the smart lock to connect to their phone and leave it at that. Experienced smart home users tend to go further. Here are some of the checks that come up repeatedly in smart home and security discussions that beginners often overlook:
Access log review: Most Wi-Fi and Z-Wave smart locks maintain an access log. Regularly reviewing this log — who entered, when, and using which credential — is an easy way to spot anything unusual. If a claim were ever filed, this log could also serve as documentation of your home’s access history.
Code hygiene: Many smart lock owners give out temporary or guest codes and forget to revoke them. Set a habit of reviewing active codes monthly and deleting any that are no longer needed. One shared code given to a contractor two years ago and never removed is a common oversight.
Battery monitoring: Smart locks are battery-powered. Most will warn you through the app when the battery is low, but if you haven’t opened the app in a while, you might miss the warning. Set a calendar reminder to check battery levels every two to three months, and keep a spare set of batteries for the lock model you own.
Network segmentation: Placing smart home devices — including your smart lock’s hub if it has one — on a separate guest Wi-Fi network reduces the risk that a compromise of one device can spread to your computers or other sensitive devices. This is a step that CISA and the NIST Cybersecurity Framework both recommend for smart home environments.
Common Smart Lock Mistakes vs. Better Choices
Safety Note: Smart locks are battery-powered devices mounted on your exterior door. Before installation, confirm that the lock model is compatible with your door’s backset and thickness. If your door requires drilling new holes or structural modifications, or if you are unsure about proper installation, consult a licensed locksmith or professional installer. Improper installation may compromise the lock’s rated performance and could affect any claims related to forced entry.
When to Contact a Professional
Contact a licensed locksmith or professional installer if:
- Your door requires structural modification or a new hole for the lock body.
- You are installing a lock on a commercial or multi-tenant property where local codes may apply.
- Your door is non-standard (oversized, metal, or fire-rated) and you are unsure of compatibility.
- You are a renter and want professional documentation of the installation for your landlord.
- The lock you purchased does not align properly after initial installation, leaving gaps or misalignment in the strike plate.
Contact your insurance agent or broker if: You want written confirmation of how your policy handles smart lock upgrades, whether a discount applies, or what your policy says about digital intrusion coverage. Always get important policy clarifications in writing.
Not all security layers have equal impact on your home’s overall protection profile. The relative priority meter below shows how different security measures are generally ranked when evaluating a home’s security setup — whether by a security professional or an insurer conducting a risk assessment.
Home Security Layer Priority — Practical Guide (Relative Importance)
These are general relative rankings for educational guidance. Individual insurer policies and professional risk assessments may weigh factors differently.
The takeaway is practical: a smart lock contributes to your home’s overall security posture, but it works best as one layer among several — not as a standalone solution.
Where to Learn More from Official Sources
If you want to dig deeper into the topics covered in this article, the following official sources can provide additional context:
- CISA — Securing the Internet of Things: Practical guidance on protecting smart home and IoT devices, including password hygiene and network segmentation.
- FTC — Start with Security: Consumer and business guidance on connected device data practices and security hygiene.
- NIST Cybersecurity Framework: Framework guidance that includes smart home device risk management principles for more technically minded readers.
Frequently Asked Questions
Do smart locks void home insurance policies?
In nearly all cases, installing a smart lock does not void a homeowners insurance policy. Insurers evaluate the physical security quality of your locks — primarily through ANSI/BHMA grade ratings — not whether the lock has smart connectivity. However, you should always notify your insurer of significant home upgrades and review your specific policy terms.
Can a smart lock help lower my home insurance premium?
A smart lock alone is unlikely to produce a significant premium reduction. However, when paired with a professionally monitored alarm system, a smart lock may support a broader home security discount. Premium discounts for security systems can vary widely by insurer, so it’s worth asking your provider directly what qualifies.
What if someone hacks my smart lock and steals from my home — am I covered?
This is an area where standard home insurance policies may vary. Some policies define covered burglary as requiring signs of forced physical entry, which a digital access exploit may not meet. Check your policy’s definitions carefully and ask your insurer about cyber or electronic intrusion coverage. Optional cyber riders may be available to address this gap.
Does installing a smart lock affect my renters insurance?
In most cases, renters insurance covers your personal belongings regardless of the lock type on your door. The bigger concern for renters is whether your landlord approved the lock change. Installing a lock without permission may violate your lease, which could complicate any future claims. Always get landlord approval in writing first.
What ANSI grade should a smart lock have for insurance purposes?
ANSI Grade 1 is the highest rating and is recommended for exterior doors by most security guidance. Grade 2 is also generally acceptable. The ANSI grade reflects the physical strength of the lock — its resistance to forced entry, picking, and wear. Many insurers that review lock quality look for at least a Grade 2 certified deadbolt on entry doors.
Should I tell my insurance company if I install a smart lock?
Yes. Notifying your insurer when you make significant home security upgrades is a good practice. It creates a record of the improvement, may support a discount inquiry, and avoids any ambiguity if you ever need to file a claim. A quick phone call or email to your agent is usually all that’s needed.
Are there smart locks that work well for renters without requiring landlord modification?
Yes. Interior retrofit smart locks, such as those made by August and similar manufacturers, attach to the inside of your existing deadbolt without replacing the exterior cylinder. This leaves your landlord’s hardware in place and typically does not require modifications to the door itself. Still, it’s best practice to inform your landlord and get written approval before any installation.
Final Thoughts
The short answer to whether smart locks void insurance is: no, they almost certainly don’t — and in some situations, they may even support a modest premium reduction when paired with monitored security. The things that actually matter to insurers are the physical grade of your lock, whether you have a monitored alarm, and whether you’ve documented your security setup.
For most homeowners, the practical steps are simple: choose an ANSI Grade 1 or 2 certified smart lock, secure the app with a strong password and two-factor authentication, keep firmware updated, and notify your insurer. If you’re a renter, get landlord approval in writing before installing anything.
For complex installations — non-standard doors, multi-unit properties, or setups requiring structural modification — consult a licensed locksmith or professional installer. And always check your local building codes before making permanent changes to your home’s entry hardware.