Your home insurance provider assesses several factors to determine your homeowners insurance rates. In addition to your home’s value, layout and location, home insurance companies can even look at current trends for break-ins or theft. If you live in an area that is prone to these kinds of events, your premiums could increase. The increased risk of burglary translates to high potential losses for your insurance company if you have to file a claim.
One of the best and easiest ways to deter a burglary—and in turn lower your home insurance rates—is to invest in a home security system. Depending on the type of system you purchase, you could see up to a 10% decrease in your insurance rates. Let’s look at how and why a home security system helps lower the cost of your homeowners insurance and which system makes the most sense for your needs.
Why does having a home security system lower my homeowners insurance?
How much do you stand to lose in a burglary, and how often do they occur? The FBI estimates that almost 1.1 million burglaries occurred in 2019. Burglaries accounted for almost 63% of all burglary offenses. Victims of burglaries suffered an estimated $3 billion in property losses in that same year, with an average loss of $2,661.
Insurance companies like to see risk mitigation. By installing protective or safety devices in your home, it stands to reason that you’d be reducing some of that risk. Statistics show that 83% of burglars often check for home security systems when looking for a property to break into. If they find one, 60% of them will change their mind.
Because fewer break-ins often make for fewer insurance claims, that savings can get passed onto you in the form of a discount.
How much does a security system save on insurance?
Home insurance providers typically offer insurance discounts for alarm systems that can range from 2-10%, largely depending on what kinds of security and safety devices and systems you install. More preventive measures usually add up to bigger discounts. You shouldn’t install these items just for the discount, however. Depending on how much you’re spending on services and equipment, you may be outpacing the savings from your insurance provider.
If you’re looking for more opportunities to save on your monthly rates, you may want to look at other options. This can include comparison shopping each year, opting into paperless statements, raising your deductible or bundling your home and auto insurance together.
Which home security systems qualify for a homeowners insurance discount?
Deadbolts, fire prevention systems, smart locks, motion detectors and burglar alarms are common factors in giving you a discount, and you can usually save more if you combine these tools together. Note that discounts and accepted types of home security systems will generally vary by carrier, meaning that some providers will provide larger discounts for different protection systems.
Types of Home Security Systems
There are a variety of home security options you can install, ranging from affordable options like deadbolts and smart locks, to monitored security systems that provide immediate feedback in the case of a break-in to an external monitoring agency.
Local audible alarm systems, for example, make you or someone nearby aware of a break-in attempt through loud noises, flashing lights, or other means. Local audible systems do not alert the authorities, but they allow you (or a neighbor) to do so.
The amount of noise and/or visual alert these systems provide are a major deterrent to any would-be burglars entering or trying to enter your property. Many local monitored systems include cameras and doorbell cameras to allow you to monitor your home from anywhere with your phone or tablet.
Centrally monitored alarm systems are watched by an outside party or company, often 24 hours a day and seven days a week. These alarm companies can determine whether or not it’s a false alarm and quickly notify the appropriate authorities.
How much does a home security system cost?
Home security systems vary by cost, but local audible alarms tend to be more affordable than the centrally monitored versions. A local alarm might cost anywhere from $100 to $400. Prices may increase depending on the size of your home and any additional features you need.
Centrally monitored alarms are more expensive. In addition to installation for equipment, these services require you to subscribe to a monthly or yearly plan. The higher price, however, allows for more peace of mind. If you’re out of town, for example, the monitoring company—such as ADT or Simplisafe—can alert the police in the event of a break-in.
Can my security system in my apartment lower my renters insurance premiums?
A security alarm system can also lower your renters insurance, but you should be mindful of what your landlord or property management company allows. Many apartment complexes frown on drilling holes into walls or making huge changes. A wireless system, however, can provide similar protection to a hardwired option at an affordable rate. Don’t forget to ask your landlord about other options too, such as installing a deadbolt and a door jammer or sliding door lock.
Other Benefits of Home Security Systems
Home security systems don’t just help deter crime or reduce your insurance rates. Other benefits to installing a home security system can include:
- Fire prevention tools
- Energy savings
- Home automation
- Access for friends and family if necessary
SelectQuote Can Help You Save Even More on Homeowners Insurance
If you’re looking for even more ways to save money on your homeowners insurance, consider comparison shopping with the licensed insurance agents at SelectQuote. We compare rates from some of the most trusted home insurance carriers at once and find any available home insurance discounts. We’ll help you find competitive rates with the policy features you need for peace of mind.