Paul Sanchez
Homeowners insurance companies define security as measures taken to protect your home from theft, vandalism, and other risks. These measures can include burglar alarms, locks, motion sensors, exterior lighting, cameras, and other preventative measures. Many insurance companies offer discounts to homeowners with security systems installed. The savings you can expect from a home security system discount will vary by insurer and the specific types of anti-theft or safety devices your insurer may offer a discount for.
| Characteristics | Values |
|---|---|
| Security System Discount | Yes, many insurance providers offer discounts for security systems installed in homes. |
| Discount Amount | The discount amount varies across providers, ranging from 2% to 15% on premiums. Some sources state that it can go up to 20%, depending on location and system type. |
| Qualifying Security Measures | Monitored security systems with alarms, door and window sensors, motion sensors, cameras, deadbolts, smart locks, smoke detectors, and sprinkler systems are often eligible for discounts. |
| DIY vs Professional Installation | Some providers offer discounts for DIY security systems, while others prefer professionally installed and monitored systems. |
| Claim Requirements | It is important to be honest about the presence of a security system when making a claim, as insurance providers may deny the claim if they find out the system was not installed or was non-functional. |
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What You'll Learn
Security systems and safety devices
Discounts on Homeowners Insurance
Many insurance providers offer discounts to homeowners who have security systems installed. The average saving for owning an alarm system is estimated to be $59 per year, but the amount can vary depending on the provider and the specific security measures implemented. Some companies offer discounts of up to 15%, while others provide savings of 2% to 5% on premiums. The savings you can expect will depend on the insurer and the types of anti-theft or safety devices they offer discounts for.
Types of Security Systems and Safety Devices
Security systems can include a range of features such as video surveillance cameras, door and window sensors, motion sensors, deadbolts, smoke detectors, fire alarms, and sprinkler systems. Some companies may offer discounts for specific types of security measures, such as monitored smoke detectors, leak detectors, or smart home devices.
Protection Against Burglary and Vandalism
Security systems act as a deterrent to potential criminals and can help prevent break-ins and vandalism. In a study, researchers found that about 83% of convicted burglars said they would seek an alternative target if they knew an alarm system was present. With a burglary occurring every 18 seconds in the US, a security system can provide valuable protection and peace of mind.
Evidence and Claims
Security camera footage can provide valuable evidence in the event of an incident, helping to resolve claims and determine what occurred. This can be especially important in cases of theft or vandalism, where insurance companies may deny a claim if they find out you did not have a functioning security system as declared.
Fire and Water Damage Prevention
In addition to protecting against intruders, security systems can also help mitigate fire and water damage. Sprinkler systems can help to douse flames and prevent the spread of fires, while monitored smoke detectors can alert you to potential fires when you are away from home. Water sensors can detect leaks and send mobile alerts, allowing you to take instant action and prevent costly water damage.
It is important to note that the availability and amount of discounts may vary depending on your insurance provider, and certain requirements may need to be met for your security system to qualify for a discount. It is always a good idea to check with your insurance company to understand their specific discounts and requirements.
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DIY vs professional installation
Installing a security system in your home can help deter intruders and lower your insurance rates. Many insurance providers offer discounts for security systems, and some popular insurance companies' websites explicitly mention potential discounts for security systems.
When it comes to installing a security system, you can choose between DIY installation and professional installation. Here are some considerations for each option:
DIY Installation:
DIY installation can be a great way to save money, as you don't have to pay for professional installation services. Many modern security systems use wireless sensors, making installation relatively straightforward. Some companies even pre-program devices before shipping, so you only need to turn on the system and place the equipment. Basic components like burglar alarms and sensors are usually simple to install, often as easy as changing a lightbulb or hanging a picture frame.
However, DIY installation may require more of your time and energy. You'll need to ensure you're available when the equipment arrives and set aside time for installation. Additionally, you'll need to handle any troubleshooting on your own if issues arise.
Professional Installation:
Professional installation offers the convenience of having an experienced technician handle the entire process. They can conduct a security assessment, troubleshoot any problems, and ensure the equipment works correctly. Depending on where you live, some security companies offer same-day installation, providing peace of mind and a quick turnaround.
However, professional installation typically comes with an additional fee, which can vary depending on the security company and the equipment involved. You may also need to clear your schedule for a more extended period, as installation times can vary, and technicians may provide a time window rather than an exact arrival time.
Ultimately, the decision between DIY and professional installation depends on your preferences, budget, and time constraints. Both options are acceptable ways to get a security system set up, and many insurance companies offer discounts regardless of the installation type.
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Discounts and requirements
Discounts on homeowners insurance for security systems vary by insurer, so it is worth shopping around to find the best rates. Some insurance companies offer discounts of up to 15% for having a home security system, with some companies offering discounts of 2% to 5% and others up to 20% depending on location and the type of system installed. The savings you can expect from a home security system discount will vary by insurer and the specific types of anti-theft or safety devices your insurer may offer a discount for.
Some insurance companies only offer discounts for professionally installed and monitored security systems, while others recognize that DIY systems can help secure a house just as well. Some providers may offer a lesser discount if you opt for self-monitoring. It is important to check with your insurer about what home insurance discounts are available to you.
In addition to security systems, other safety and theft prevention measures may also qualify for discounts, such as monitored smoke detectors, leak detectors, and sprinkler systems. Deadbolts, standalone burglar alarms, smart home devices, and fully monitored security systems may also lower your homeowners insurance rates.
It is important to note that if you claim a discount for a security system, your insurance company may ask for proof of the system, and failure to install the system after claiming a discount is not considered fraud unless you have received a payout for theft.
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Insurance company partnerships
Security systems can help insurance companies by preventing problems before they start. For example, security systems can prevent theft, fire, and water damage. As a result, many insurance providers offer discounts to homeowners with security systems installed. Some popular home insurance companies that offer potential discounts for security systems include Allstate, State Farm, Progressive, and Farmers.
In addition to insurance companies, security system companies also benefit from partnerships with insurance providers. For example, ADT has a special partnership with Chubb insurance to help customers save money while keeping their families safe. ADT's DIY line, Blue by ADT, can be integrated with other smart home capabilities and also offers professional monitoring.
Big Tech firms have also been partnering with insurance companies to crack the insurance market. For example, Google has invested in health insurance startup Oscar Health and US health-tech firm Collective Health. In 2020, Coefficient Insurance, a subsidiary of Alphabet’s life sciences and healthcare arm Verily, launched an insurance partnership with Swiss reinsurance company Swiss Re. Google Nest also collaborated with American Family Insurance and Liberty Mutual Insurance, allowing the insurers to tap into Google Nest devices and offer more differentiated pricing for their customers.
In the e-commerce space, Amazon partnered with Indian digital insurer Acko to offer auto-insurance to Amazon customers with lower premiums. Amazon customers who sign up for auto-insurance through the e-commerce app or website will receive instantly issued policies at lower rates thanks to Amazon's digital infrastructure.
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Other ways to save on insurance
Installing a security system is one way to save on homeowners insurance. Many insurance providers offer discounts to homeowners who have security systems installed, as they can help prevent break-ins, which often result in costly damage and stolen property.
Shop around
Homeowners insurance prices vary from company to company, so it's worth shopping around and comparing prices from different insurers. New customers often get better deals, and different companies weigh risk factors differently, so you may find a better rate elsewhere. Ask friends and family for recommendations and check with your state insurance department to see if they provide consumer complaint ratios by the company. Remember to consider the level of customer service provided, as you'll want an insurer that can support you adequately in the event of an accident or emergency.
Choose a higher deductible
The deductible is the amount you pay if you need to make a claim. The higher your deductible, the more you can save on your premium. For example, increasing your deductible from $1,000 to $2,500 could save you an average of nearly 12% per year. Just be sure to have enough saved to cover a larger out-of-pocket expense if needed.
Review your coverage levels
Make sure you're not paying for more coverage than you need. While it's important to plan for potential worst-case scenarios, there's no benefit in paying for insurance you don't require. Ensure that your coverage levels for other structures on your property, such as sheds or fences, match their actual replacement value.
Take disaster preparedness steps
If you live in an area prone to disasters such as floods, earthquakes, or hurricanes, consider taking steps to reinforce your home. Installing storm shutters, shatterproof glass, or modernising your heating, plumbing, and electrical systems can reduce the risk of fire and water damage. Many insurers offer discounts for these types of safety precautions.
Maintain your home
Staying on top of important maintenance and safety measures can help prevent losses and keep your insurance rates low. For example, if you're planning to replace your roof, let your insurer know once it's completed, as this may reduce your rate.
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Frequently asked questions
Yes, many insurance providers offer discounts to homeowners with security systems installed. The savings you can expect from a home security system discount will vary by insurer and the specific types of anti-theft or safety devices.
Security systems that include features like 24/7 professional monitoring, door and window sensors, motion sensors, fire alarms, smoke detectors, and security cameras often qualify for a discount. Some insurance companies also offer discounts for DIY security systems, while others only offer discounts for professionally installed systems.
The discount offered for a security system varies by insurer and can range from 2% to 15% or even up to 20% of your insurance premiums. According to QuoteWizard, the average saving for owning an alarm system is $59 per year.
You can check your insurance policy's declarations page to see if a home security discount is noted. You can also contact your insurance agent or company directly to inquire about any available discounts and their specific requirements.
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