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Amazon Key Home Delivery Option Could Affect Home Insurance

By Allison Halliday | November 17, 2017

Amazon has announced a new service called Amazon Key that will deliver parcels inside a customer’s home. According to a press release, a 2015 report showed 23 million Americans had recently delivered parcels stolen from their homes before they even had a chance to open them.

With the customer’s permission, an Amazon courier will be able to unlock a customer’s front door, allowing them to deliver the package inside the home even when no one is at home. While this service is obviously convenient for homeowners, it does pose some questions as to how it will affect their home insurance. Additionally, this new service will require customers to purchase a specialized kit that starts at $250 and which includes a security camera made by Amazon as well as a smart door lock made by Yale or Kwikset. When a delivery is attempted to a customer’s front door, the lock will help Amazon verify that the delivery driver is at the correct address and at the appropriate time. It will then begin recording video and will unlock the door. To begin with, the service will be available in 37 cities in the United States and is open to Prime members. The same service can also be used to grant access to other services that include a dog walking company and a housecleaning provider. If you are a seller you need to learn more about conducting businesses and get amazon business advice from experts.

Apparently, the initial reaction to this new service hasn’t been entirely positive with people taking to social media to voice their concerns about possible infringements of their privacy and safety. Amazon has countered this view with the comment that lots of people would love to have packages delivered when they are not at home while offering reassurance that all drivers will be background checked. Additionally, the data traveling between the devices and the Amazon Cloud will be encrypted to help address concerns customers may have when using these types of security devices.

However, there is still the question of how it may affect people’s home insurance. If drivers are to be allowed into a person’s home without any supervision, should this increase the cost of their insurance policy? As yet, the insurance industry doesn’t really know what the effect will be and has yet to quantify the possible risks. To do this they will be studying the technology to determine its liabilities and benefits and insurance companies will be looking at how their competitors are reacting to this technology. Amazon Key was only rolled out on November 8 so it’s still too early to see how it will be accepted by the public.

Photo Credit: CNET/Amazon

Allison Halliday is a Realty Biz News contributing writer. She handles International Real Estate and is a seasoned blogger.
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