When homeowners consider installing home security systems, the first benefit that usually comes to mind is safety and security. A home well-equipped with alarms, cameras, motion sensors, and smart locks provides peace of mind against theft or intrusion. However, beyond that, do home security systems have any other benefits? Those considering getting insurance services may wonder: Does home security decrease insurance rates?
Does Home Security Decrease Insurance Rates?
The short answer is, yes, in many cases, it can. Insurance companies give lower rates to homeowners who take proactive steps to reduce risks. A reliable home security system falls into that category. However, the extent of the savings depends on several factors.
Why Insurance Companies Care About Security
Insurance, in all forms, is all about risk management. The higher the risk of loss or damage is, the higher the premium rates will be. When homes lack protective measures, such as a home security system, they are more vulnerable to burglary, vandalism, and property damage. When insurance companies see that you have invested in home security, they see a reduced likelihood of a claim.
Burglar alarms or monitored security systems, for instance, can deter intruders or minimize potential loss. This means fewer claims for stolen property and damage, which is both beneficial to the homeowner and the insurance provider.
What Type of Security Systems Qualify?
When it comes to insurance savings, different types of security measures carry different weights. It is expected that the more comprehensive the system is, the bigger the discount will be.
Basic Alarms
Homes equipped with alarms that sound when someone breaks in the door or window qualify for modest discounts.
Monitored Systems
When homeowners invest in professionally monitored systems, where a security company alerts the police in the event of break-ins or similar emergencies, they typically achieve greater savings.
Smart Technology
Another factor that can add value in the eyes of insurance companies is innovative technology, such as a system connected to your smartphone that enables remote monitoring and alerts.
CCTV Cameras
In cases of theft, video surveillance can provide much-needed video evidence. CCTV cameras can make your home less of a target for thieves and intruders.
Fire and Smoke Detectors
Fire is also another concern for insurers. Fire and smoke detectors can be bundled with home security and reduce the risk of fire damage.
Deadbolts and Smart Locks
These may be simple, but they are upgrades that can give insurance companies the impression that your property is better protected.
How Much Can You Save?
While home security can lower premiums, the amount of savings homeowners get varies widely. A 5%-20% premium may be expected, depending on the insurer and the type of system installed. Expect that monitored security systems will qualify for higher discounts than simple alarms.
Things to Remember:
Check with Your Provider
Do not expect all insurance companies to give discounts. Those that do may have specific requirements about the type of system that must be installed.
System Verification
An insurer may require proof of installation or professional monitoring before granting a discount.
Cost vs. Savings
Expecting big savings vs the cost of the security system early on may be unrealistic. Depending on the type of system installed, it may take several years before the insurance savings offset the system cost.
Bundle Measures
Aside from security systems, you can also add other safety features, such as fire extinguishers, smoke detectors, sprinkler systems, or reinforced roofing, to maximize your discounts.
Returning to the question, does home security reduce home insurance rates? Yes, it usually can. Home insurance providers view security systems as proactive tools for reducing risk. And homeowners who are proactive in taking these steps are rewarded with lower premiums. Ask what type of devices qualify, what proof is needed, and how much you can save. Call us for a consultation today.