Home automation involves “smart” devices programmed to complete certain beneficial actions under a given set of circumstances, Reed said.

A home security system set up to automatically call the fire department and blink a home’s front porch light when the smoke alarms go off is one example of the kind of new technology that could be developed by startups in the program, Reed said. Another might be an alarm system that works with a homeowner’s home entertainment system so that a stereo could play loud music if someone enters the house through a window.

“There are a lot of companies in this space, and there are a ton of possible applications,” Reed said in a phone interview. “We think it’s the next wave of innovation within the insurance industry, and we’re interested in exploring new ways that people are engaging with technology. It’s definitely a developing market.”

Per the partnership, American Family will offer an optional minimum $25,000 equity investment to each participating startup , along with deep industry data and a “wealth of homeowner knowledge” to try to help the new technology companies succeed, Reed said, while Microsoft provides the workspace and additional mentoring and investor/customer introductions.