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It’s no secret that we are living in a technological age and that we are experiencing a digital revolution. Smartphones are blurring the lines between computer and personal assistant, cars are getting smarter and so are our houses. And with this new rise in home intelligence, we are about to enter uncharted waters as far as home insurance.


One of the biggest technological advancements that stands to impact the home insurance industry greatly is Amazon Key. Released just last week, Amazon Key is a service that allows Amazon delivery people to enter your home in order to safely deliver a package. The program aims to cut down on theft. And while, at first, it may sound like an incredibly benign service, when you really look into it, it presents a bevy of problems to the home insurance industry.


The main issue lies in liability. With Amazon Key, you are willingly allowing a stranger into your house. Multiple questions then arise from this fact alone: will this delivery person steal? What if they leave my door unlocked? What if my pet gets out? What if the delivery person slips and injures himself on my property. If any one of these situations occurs during an Amazon Key delivery, who will be held responsible, Amazon or you?


And with this question, comes another: Will home insurance rates rise? As technology continues to impact virtually every single existing industry, it forces said industries to catch up and adapt. Home insurers will need to change policies in order to cover accidents related to home delivery. And because of this, insurance rates could rise dramatically. This is obviously not ideal for policyholders, but it may be a necessary change.


If Amazon Key, like many of Amazon’s other ventures, takes off, we could see a genuine spike in liability issues. The program is currently available in 37 cities and the Amazon Key starter kit starts at $250.

What are your thoughts on the implications of this new service? Would you feel comfortable with a stranger in your house or will you steer clear of the service altogether? Do you love the service but hate the thought of your insurance premiums rising?


Let me know!