Insurance + Real Estate

IoT in insurance and real estate is everyday practice: leak sensors report water damage before the ceiling gets wet, remotely readable meters deliver consumption data for billing and ESG reports, and in smart buildings occupancy and climate sensors control heating, lighting and space. Techem, Merck Real Estate, the insurer VGH and the Centre for Psychiatry Südwürttemberg already work this way.

The pressure comes from several sides: escape of water cost German residential building insurers EUR 4.9 billion in 2024, more than ever before. Heat meters and heat cost allocators in Germany must be remotely readable by 31 December 2026. And investors demand verifiable consumption and CO₂ data for entire portfolios.

On this page you will find solution examples from the IoT Use Case network: which sensors and wireless technology were used, how the data got into existing systems and what the result was.

IoT in insurance and real estate: what works in practice

Buildings are among the longest-lived assets there are, yet most of them run without real-time data. Whether a pipe is leaking, a room sits empty for months or the heating works against an open window, owners usually find out with the utility bill or the claim. IoT closes that gap: battery-powered wireless sensors can be retrofitted without cabling or construction work, and the data flows into one platform shared by property managers, facility management, tenants and insurers.

Unlike in manufacturing, the building stock is extremely mixed: old and new, residential and office, single assets and portfolios with hundreds of properties. There is almost never IT staff on site. Solutions therefore have to work without the tenants' Wi-Fi, run for years without a battery change and be simple enough for caretakers.

Typical IoT applications in buildings

Water leak detection: preventing escape-of-water claims

According to the German Insurance Association GDV, escape of water is the most expensive cause of loss in German residential building insurance: in 2024 it cost EUR 4.9 billion, more than half of all claims expenditure. Leak sensors under sinks, washing machines and water heaters, in plant rooms and risers report water on the floor instantly via app or text message. Flow sensors at the mains detect unusual continuous consumption and can shut off the supply automatically. Temperature probes warn of frost in vacant flats and basements. Insurers see fewer large losses, property managers fewer night-time emergency call-outs.

Building monitoring and mould prevention

Temperature, humidity and CO₂ sensors show where moisture builds up before mould appears. Room temperature and humidity reveal the dew point risk on cold exterior walls, and tenants get a concrete ventilation prompt instead of a leaflet. If a dispute arises anyway, the measurement history shows whether a building defect or the way the space is used caused the problem.

Remote meter reading, submetering and regulation

Across the EU, the Energy Efficiency Directive requires remotely readable heat meters and heat cost allocators. In Germany, existing devices must be retrofitted or replaced by 31 December 2026; otherwise tenants may cut their share of heating costs by 3 %. Landlords who read remotely must also send tenants monthly consumption information. Techem shows how this works securely at scale: the energy service provider reads consumption in more than twelve million homes by radio and protects the transmission from the meters to its data centre with its own PKI.

Energy monitoring and ESG reporting for real estate portfolios

Buildings account for around 40 % of energy consumption in the EU and roughly a third of energy-related greenhouse gas emissions. Investors, lenders and the EU taxonomy therefore expect verifiable consumption and CO₂ figures per asset instead of estimates. IoT meters deliver these figures automatically at building, floor or tenant level. Comparing similar buildings shows where refurbishment or re-commissioning pays off first. The Centre for Psychiatry Südwürttemberg monitors 157 buildings with around 15,000 data points from one control room, connected via 130 BACnet controllers.

Smart buildings: building automation, indoor climate and space management

IoT in smart buildings means heating, ventilation, lighting and shading follow actual occupancy and indoor climate rather than a fixed schedule. Société Foncière Lyonnaise runs its Paris office building BIOME with 25,000 m² on one central building automation system, from BACnet field devices and DALI lighting to presence detection. For non-residential buildings this is becoming mandatory: the recast EU Energy Performance of Buildings Directive requires building automation and control systems for heating or air conditioning above 290 kW and lowers the threshold to 70 kW by the end of 2029.

Occupancy sensors also show how much space is really used. Merck Real Estate handles more than 6,000 moves a year and measures occupancy and indoor climate over LoRaWAN to cut energy and rental costs. Serviceplan Group sees in real time which desks are occupied across around 40,000 m² of office space, and Enloc organises 73 employees on 35 desks.

Predictive maintenance for heating, lifts and ventilation

Vibration, current and temperature sensors on pumps, boilers, lifts and air handling units detect wear before the equipment fails. Maintenance happens when the condition requires it, not when the calendar says so. That reduces emergency repair costs and spares tenants a cold flat in January. Read more in the use case predictive maintenance.

Access control and building security

Digital keys on the smartphone, time-limited access for contractors and automatic logs replace the key cabinet. A lost key no longer means replacing the locking system, and insurers and authorities get traceable access records.

IoT in insurance: prevention, claims handling and new policies

Insurers use IoT in three places. Prevention: sensors in the insured property prevent losses or keep them small, which is why some property insurers subsidise leak sensors or automatic water shut-off valves. Claims handling: measurement data proves when, why and how badly damage occurred, saving loss adjuster visits and disputes. Pricing and underwriting: risks that are measured continuously can be priced more accurately, a principle well known from telematics in motor insurance.

The project by Aerzen Digital Systems with the German insurer VGH shows what this looks like with machine data: the cause of damage is available immediately in a readable form, and according to Aerzen the repair time after a loss drops by around 80 %. VGH uses the data for faster claims settlement and for new insurance models built on predictive maintenance.

Technology: wireless standards for retrofitting existing buildings

A handful of standards dominate in buildings. LoRaWAN reaches through several walls and floors, one gateway often covers a whole building, and sensors run five to ten years on one battery. Wireless M-Bus with OMS is the standard for water and heat meters and heat cost allocators. NB-IoT and LTE-M need no gateway of their own and suit scattered single assets and basements with poor reception. Existing building services connect via BACnet, KNX or Modbus. What matters is a platform with open interfaces, so data from different trades and vendors comes together and data ownership stays with the owner.

Data protection and tenancy law

Consumption, climate and occupancy data from a flat allow conclusions about its residents and are therefore personal data. IoT projects need a clear purpose, a legal basis under the GDPR and transparent information for tenants. Proven practice: sensors without cameras or microphones, aggregating data as early as possible and hosting in the EU. An insurer that wants to use data from the insured property generally needs the policyholder's consent.

How to start an IoT project in an existing portfolio

1. Pick the focus from your own numbers. Claims history, energy costs and vacancy show whether leak protection, remote reading or space utilisation offers the biggest lever.

2. Start small. A pilot in three to five typical buildings shows within a few months whether radio coverage, battery life and alarm routing work.

3. Settle processes before technology. Who responds to a leak alarm at three in the morning? Without clear responsibility, the best sensor achieves nothing.

4. Scale openly. Choose platform and radio standard so that further applications and vendors can be added without new cabling.

Real-world examples from the IoT Use Case network

Further down you will find solution examples from real estate companies and insurers, from remote meter reading at Techem and smart buildings at Merck, Serviceplan and SFL to data-driven claims settlement at VGH. Each example shows which technology was used, which hurdles came up and what the result was. Planning a project of your own? Get in touch.

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