Can a Home Security System Lower Your Homeowners Insurance Rate?

Homeowners insurance is like a financial security blanket that protects homes from risks like theft, fire, and other natural disasters. It also offers liability protection for any injuries or accidents that may occur on your property. Most lenders require homeowners insurance as a stipulation for getting a mortgage loan.

A typical homeowners insurance policy doesn't cover all risks (such as earthquakes, floods, or neglect), but it does cover some of the biggest and most common. Even if you own your home and aren't legally required to have insurance, maintaining a homeowners insurance policy could save you from financial ruin. However, the annual cost of such policies can be expensive, which is why many homeowners wonder if they can get a home security insurance discount. Here's what to know about such discounts and how to qualify.

Does Home Security Lower Insurance?

Home security systems can protect your home by deterring thieves, alerting homeowners of intruders, and detecting water leaks, smoke, and carbon monoxide. Some systems even offer professional monitoring and rapid emergency response assistance as needed. In addition to all of these impressive benefits, a home security system may also trigger lower monthly insurance premiums.

Insurance companies like to lower their risk when extending coverage to policyholders. Therefore, they often reward proactive security measures (such as installing a home security system) with decreased monthly premiums. Security systems can reduce the risk of fire, vandalism, and other risks, resulting in fewer claims and payouts from the insurance company.

What Types of Security Systems Qualify for Discounts

Some home security systems may not meet the requirements for insurance discounts. Therefore, if you want to benefit from monthly insurance savings, it's important to choose a system that qualifies. Since insurance companies may have differing policies and requirements, it's wise to reach out to your provider regarding security system discounts. However, most insurance providers offer discounts for homes equipped with security systems that meet the following criteria:

• Professionally installed
• Connected to a 24/7 centrally monitored center
• Include fire alarms, burglar alarms, and smoke detectors
• Have reliable surveillance cameras and other security devices (such as smart sensors and deadbolts)

Some insurance providers may also require indoor sprinkler systems that automatically trigger when the fire alarm goes off. To secure a monthly premium discount, you may need to give your insurance provider a copy of your installation certificate. You may also need to show a "proof of alarm" to let your insurance provider know that your security system is currently active.

How to Maximize Homeowners Insurance Security System Savings

To maximize your homeowners insurance savings, opt for a home security system that offers central monitoring. Monitored security system insurance benefits are far better than anything you could get from a self-monitored system. While it's true that central monitoring systems cost more than self-monitoring, they can potentially enable insurance discounts between 5% and 20%. Therefore, they often pay for themselves over time.

Besides opting for a centrally monitored security system, you may also be able to maximize your homeowners insurance savings by adding optional safety sensors. Popular choices include carbon monoxide detectors, smart smoke detectors, and leak detectors. Smart locks, thermostats, and video surveillance cameras can further convince your insurance provider that you're willing to go the extra mile to protect your property. Finally, don't forget to talk to your insurer about which security brands or features can help you qualify for the largest premium discounts.

Tips for Maximizing Savings While Boosting Protection

It's nice to save money on insurance premiums, but it's even nicer to have peace of mind that your home and family are well protected. Here are a few tips for maximizing your insurance savings while also boosting your family's protection:

• Choose a system that's certified by Underwriters Laboratories (UL). This certification indicates the system meets or exceeds industry standards.
• Install a smart water shutoff valve along with your system. This can automatically turn the water supply to your home off if any of your security sensors detect a water leak. Insurance providers love smart water shutoff valves because they can minimize flooding damage.
• Choose a home security system that includes motion-activated security lighting. Ensure the lighting is placed in a way to adequately illuminate entry points and dark corners.
• Add a security window film or shatter-resistant glass to your windows to prevent unwanted entry.
• Keep bushes and shrubs underneath your windows trimmed so intruders can't easily hide in them.
• Maintain your security system regularly to keep it in good working order.
• Reinforce exterior doors with deadbolt locks.
• Weigh the cost of your security system against the savings you'll get on your annual insurance premiums to make sure you're making a cost-effective investment.

These practical tips can help you get the maximum available savings on your insurance premiums while simultaneously keeping your home and family safe.

Schedule Your Home Security Consultation

It can be hard to figure out which home security system is the right fit for you and your family. Fortunately, Smart Security Concierge can simplify the process for you. We'll help you compare systems that will help you qualify for discounted homeowners insurance premiums. Contact us today to claim your free consultation.