Do Insurance Companies Give Discounts for Security Systems?

Insurance companies often offer discounts for homes equipped with security systems. These incentives are provided because security systems reduce the likelihood of costly claims related to theft, vandalism, and fire. This reduction in risk can translate into lower premiums for homeowners.

Qualifying Security System Features

Insurance companies do not offer uniform discounts for all security systems; eligibility depends on the system’s sophistication and monitoring capabilities. Basic alarm systems that produce a loud local alert may qualify for a smaller discount. However, systems with professional monitoring, where a central station is notified of an event and can dispatch emergency services, yield higher discounts. These comprehensive systems often include components like door and window sensors, motion detectors, and glass break sensors.

Beyond theft deterrence, many insurers also consider monitored fire and carbon monoxide detectors as qualifying features. These devices can significantly reduce potential damage by enabling early detection and rapid emergency response. Some advanced systems incorporate smart home integration, including remote access, video surveillance, and sensors for water leaks or temperature changes, which can further enhance eligibility for premium reductions.

Factors Influencing Discount Amounts

The size of an insurance discount for a security system varies based on several elements. The specific policies of each insurance provider play a significant role, as some offer more substantial discounts. More sophisticated, professionally monitored systems generally result in higher savings compared to basic, unmonitored alarms. For example, discounts for professionally monitored systems can range from 5% to 20%, while basic systems might offer lower percentages.

The home’s geographic location also influences discount amounts, particularly in areas with higher crime rates where security measures are more impactful. Bundling multiple insurance policies, such as home and auto, with the same insurer may lead to greater overall savings. While a homeowner’s claim history can indirectly affect overall policy pricing, the security system discount is primarily determined by the installed protective measures. Some insurers differentiate discounts based on whether the system was professionally installed and continuously monitored, as opposed to a do-it-yourself (DIY) setup.

Process for Obtaining a Discount

To secure a security system discount on your homeowners insurance, contact your current insurance provider or agent directly. Inquire about their specific requirements for security system discounts, as these can vary. The insurer will need detailed information about your security system, including its type, components installed, and whether it includes professional monitoring services.

You will need to provide documentation to verify the system’s installation and monitoring. This might include an installation certificate from the security company, a copy of your monitoring service contract, or an invoice for the system. Having these documents readily available can streamline the application process. Once the details are verified, the discount will be applied to your policy, which may occur immediately or at your next renewal period.

After the discount is applied, review your updated policy documents to confirm the reduction and understand any ongoing terms. Some insurance providers may require periodic re-verification to ensure the system remains active and operational. Maintaining accurate records of your security system and its services is beneficial for continued savings.