Connected Home Data Gaps Pose Servicing, Risk Issues

The increasing prevalence of smart devices in American homes, with 65% of households owning at least one, has highlighted a critical "post-close data gap" that poses significant servicing and risk management challenges for the home building and real estate industries. This gap refers to the lack of comprehensive data and understanding regarding the connected devices and systems installed in a home after the initial sale is complete. While builders and developers often install a variety of smart home technologies, from thermostats and security systems to entertainment and appliance controls, the ongoing management, maintenance, and data generated by these devices are frequently not integrated into the homeowner's service or the builder's long-term relationship.

This data deficiency creates several problems. For servicing, builders and related service providers may lack the necessary information to diagnose and resolve issues with connected devices remotely or efficiently. This can lead to longer resolution times, increased costs for both the homeowner and the service provider, and a diminished customer experience. Without access to device performance data, diagnostic logs, or even a clear inventory of installed smart products, troubleshooting becomes a manual and often frustrating process. Furthermore, the lack of integrated data hinders proactive maintenance, where potential issues could be identified and addressed before they become critical failures.

From a risk management perspective, the post-close data gap presents considerable challenges. Insurers, for instance, may struggle to accurately assess the risks associated with smart home technology, such as potential cybersecurity vulnerabilities or the impact of device malfunctions on property damage. If a smart appliance malfunctions and causes a fire, or a security system fails to detect an intrusion, the lack of detailed data on the device's history, maintenance, and operational status can complicate claims processing and liability determination. Builders themselves face reputational and potential legal risks if the smart home technology they installed fails to perform as expected or leads to unforeseen problems for the homeowner.

The industry is beginning to recognize the need for solutions that bridge this gap. This includes developing platforms and protocols for collecting and managing post-construction data, establishing clearer lines of responsibility for smart home system maintenance, and exploring partnerships with technology providers to ensure ongoing support and data integration. The goal is to move beyond the initial sale and create a more connected and data-informed ecosystem that benefits homeowners, builders, and service providers alike, ultimately enhancing the value and safety of smart homes.