How an Alarm System Discount Can Potentially Cut Monthly Premiums
You know purchasing a home security system will help protect your family and personal property from harm, but did you know you could potentially receive a homeowners insurance discount for security system ownership? Because a security system can help deter and prevent break-ins, some insurance companies view them to reduce the likelihood of having to make a big payout to you in the future. In return, they’ll often provide you with an insurance discount, such as a USAA alarm system discount, for having an alarm system installed in your home, like those provided by Brinks Home™.
While that discount won’t entirely offset the costs of installing a home security system or its monthly monitoring fees, it can help reduce the expense and provide some additional security and peace of mind when choosing security systems for your home.
How Does Homeowners Insurance Define Home Security?
Homeowners insurance companies don’t discount all security systems equally. To receive the maximum discount on your insurance premium, you’ll likely need a fully monitored professional security service. If your home is insured for over $1 million, your insurance company may require you to have a central monitoring service for you to receive a discount for your security system.
In evaluating whether to offer a premium discount, most insurance companies look for your system to include the following components:
Home automation.
Deadbolt locks.
24/7 professionally monitored home security.
Monitored fire alarms.
Disaster sensors—flood sensors, carbon monoxide detectors, glass break, etc.
Only some insurance companies will provide a measurable discount (or any discount at all) on a monitored alarm service, so be sure to shop around. A reputable insurance company will know the value of a home security system and offer homeowners insurance discounts for your installed alarm system.
How Much Does a Security System Save on Insurance?
Insurance discounts for alarm systems offer a win-win for both you and the insurance company. Modern home security systems are incredibly reliable and offer burglar alarms and alarms for fire, smoke, and flood. Most insurers recognize that a discount on your homeowners insurance premium in exchange for you installing a monitored security system is worth the investment. Even when you’re not home, a monitored system will notify the police of a break-in or the fire department of a fire, decreasing emergency response time dramatically.
According to the Electronic Security Association (ESA), a home alarm system can provide alarm discounts of up to 20%. Most insurance companies offer these discounts too, so it’s a good idea to check with your insurance company to learn what you could save. In addition, some insurance companies offer discounts for a professionally installed security system and an additional discount if your system is monitored.
Given that homeowners insurance can cost hundreds to several thousands of dollars annually, an alarm system discount on home insurance for having a security system could save you substantial money over time.
Security Measures That Can Lower Insurance Rates
A monitored home security system could reduce your homeowners insurance premiums. That system could also provide additional support if you ever need to file a claim. For example, in the unfortunate event of burglary or fire damage, your insurance company will want to inspect loss or damage when you file a claim to ensure it meets the covered causes in your policy. In addition, if you have a home security system with security cameras, you have a quick and easy way to share theft or disaster data with your insurance provider.
However, a security camera is only one component in the larger picture of your home security. Increase your family’s safety and potentially deepen your discounts with the following home security additions:
Deadbolts
Deadbolts offer one of the most affordable options for increasing your home’s security and possibly qualifying you for a homeowners insurance discount. To receive a premium discount, you’ll need deadbolts installed on all exterior doors. Insurance companies may include smart locks with keypads in this category, too.
Burglar Alarms
Some insurance companies will count a standard burglar alarm toward a home security insurance discount if the alarm is loud enough that neighbors or emergency personnel can hear it. Most standalone burglar alarms are also easy to install as a weekend DIY project.
A study conducted by researchers from Temple University indicated that a home protected by a home security alarm is 60% less likely to be burglarized. Researchers from Rutgers University conducted a similar study and arrived at a similar conclusion.
Other Safety Measures That Can Lead to Insurance Discounts
If you want to maximize your insurance discounts, some insurance companies offer a protective device discount. Travelers Insurance, for example, typically includes smoke detectors or fire alarms, and security systems with smart home integrations that immediately alert a homeowner to a fire- or burglary-related event.
Smoke Detectors and Fire Alarms
Fire damage can be among the costliest claims insurance companies face. Data from the Insurance Information Institute shows claims for fire and lightning damage account for 20 times as many insurance claims as those for theft. Hence most insurance companies offer discounts for homeowners who install smoke detectors on every home floor. That discount may be even deeper if you add a fire alarm that connects to a monitoring service that can instantly dispatch emergency personnel to your residence.
Fire Extinguishers
Some insurance companies will offer a premium discount if you have a fire extinguisher on every floor of your home since it may help prevent the spread of a blaze that could cause substantial (and costly) damage.
Home Security Systems
With comprehensive coverage and around-the-clock protection, a professionally monitored home security system helps deter burglars and makes your home a less appealing target. Many homeowners choose to protect their property and valuables by investing in a security system, which can help offset the risk of loss.
Brinks Home's all-in-one systems connect multiple devices, providing instant notifications and real-time alerts for break-ins, suspicious activity, and fire or carbon monoxide detection—backed by fast, reliable response from our always-on Alarm Response Center.
Does a Security System Reduce Insurance?
If you really want to ensure your home security system protects your family and property and earns you a solid discount on your homeowners insurance premium, you need to do more than find the right insurance company. In that case you also need to work with a home security service provider that will help you choose a system that qualifies for that discount.
A reliable alarm company should also offer the following basic points of service:
24/7 professional monitoring.
Accessible and reliable customer support and service.
Easy installation.
Value for the money.
Reliable, quality equipment.
Contact Brinks Home to speak with a Security Consultant today about protecting your home and meeting home insurance alarm requirements for premium discounts.
