A decade ago, telematics devices revolutionized a significant portion of the auto insurance industry. Today, the usage-based insurance model is coming to homeowners policies, and raising serious questions about privacy along the way. In the past year, four leading home insurance companies — American Family Insurance, Liberty Mutual, State Farm and USAA — have announced deals with companies that provide "smart" products for homes. These devices monitor and control certain of the home’s major appliances and in exchange for using them, policyholders receive a discount on their premium.
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