Does Having a Security System Lower Home Insurance?

Home insurance provides financial protection for your dwelling and personal property against various unexpected events. This coverage extends to damage from perils such as fire, theft, and natural disasters, helping homeowners repair or replace their assets. It also often includes liability protection for injuries that might occur on the property.

How Security Systems Influence Premiums

Installing a security system can lead to a reduction in home insurance premiums. Insurers offer these discounts because security systems mitigate the risk of theft, vandalism, and, if integrated with environmental sensors, fire or water damage. A home with a security system is considered less likely to experience a claim, which lowers the insurer’s potential payout for damages or losses.

The financial benefit to homeowners ranges from a 2% to 20% discount on their annual premiums. The precise amount of savings varies considerably based on the insurance provider, the specific features of the security system, and the home’s location.

Qualifying Security System Features

Not all security systems yield the same insurance discounts; the type and sophistication of the system play a significant role. Basic alarm systems, such as those with audible alarms or simple motion sensors, might offer a smaller discount. However, systems with professional monitoring are viewed more favorably by insurers, qualifying for higher discounts. These professionally monitored systems automatically alert a central monitoring station or emergency services upon detecting an event.

Features like 24/7 professional monitoring, which ensures a rapid response from authorities, are impactful for securing discounts. Other qualifying components include video surveillance cameras, smart home integrations like smart locks and doorbell cameras, and environmental sensors for smoke, carbon monoxide, or water leaks. Some insurers may also require proof of professional installation or adherence to specific industry standards for the system to be eligible for the maximum discount.

Steps to Claim Your Discount

Once a qualifying security system is installed, homeowners should contact their insurance provider to inquire about available discounts. This can be done by calling their insurance agent, utilizing an online customer portal, or sending an email. State that a new security system has been installed and express interest in a protective device discount.

Insurers require specific documentation to verify the system’s installation and operational status. This documentation may include an installation certificate from the security company, a copy of the monitoring contract, or detailed specifications of the system’s components. Providing evidence of professional monitoring, such as an alarm monitoring certificate, is an impactful piece of proof for maximizing discounts. Some insurance companies may also request a property inspection to verify the presence and functionality of the security system and other safety features.