Most homeowners hope that there’s a connection that helps them earn insurance discounts for installing a security system. The primary goal of installing a security system is to protect your assets and residents, providing you with peace of mind. So, would it also help you obtain insurance discounts?
Most insurers encourage homeowners to have reliable home security systems to discourage crime. Because of this installing a security system may lower your home insurance rates, as both parties benefit from the arrangement. You save money on insurance premiums while insurers mitigate potential losses due to theft.
Here’s a guide on how to attract home insurance discounts by securing your home with cameras, alarms, and a smart system. Let’s begin with a discussion on how insurance companies perceive risk.
How Home Insurance Companies View Risk
Insurance companies exist to help their clients mitigate financial losses due to unexpected events. The assumption is that bad things can happen randomly to anyone among many, so pooling resources is the best way to protect yourself.
Some homes are more likely to suffer losses than others. For example, an uninsured home located in areas prone to natural disasters, such as wildfires or hurricanes, will have a higher probability of experiencing financial loss due to these events.
Insurers use risk assessment models to gauge the likelihood of you filing claims and adjust insurance premiums accordingly. These risk factors include location, crime rate in the area, age and condition of the home, and security measures put in place.
Higher Risk, Higher Premiums
Home insurance companies assess risk factors to determine the premiums that each customer should pay. The riskier they perceive your home to be, the costlier your premiums will be.
Here are some of the risk factors that insurers consider when setting insurance premiums:
1. Location
Depending on where you live, you may face a higher or lower likelihood of natural disasters, such as floods, earthquakes, and hurricanes.
2. Age and Condition of Your Home
Older homes may have outdated systems and structures that increase their susceptibility to damage.
3. Crime Rate in Your Neighborhood
If your area has high crime rates, there’s a greater chance of theft or vandalism occurring in your home.
4. Your Credit Scores
Many homeowners are surprised to learn that their credit scores can impact their insurance premiums.
Does a Security System Lower Home Insurance?
Yes, in many cases, a security system can lower your home insurance premiums. However, the actual discount depends on:
- Your insurance company.
- The type of system you install.
- Whether it’s professionally monitored.
The specifics of your coverage also affect how much you can save on your premiums.
Factors That Affect Home Insurance Premiums
The premiums hinge on various factors, such as the age of your home, its location, and the materials used in its construction.
Other factors that affect your premiums include the crime rate in your neighborhood, the level of risk associated with natural disasters in your area, your deductible, and even your credit score.
Average Home Insurance Discounts
Many homeowners receive a discount of 2% to 15% on their premiums by installing qualifying security systems. The more advanced and comprehensive the system, the greater the potential for discounts.
For example, a monitored alarm system typically qualifies for larger savings than standalone devices, such as motion lights.
The more security features you have in place, the more secure your home is considered to be. Therefore, one homeowner may receive only 5% off for a single feature, while another may receive 20% off for five features.
There are other potential discounts that homeowners can claim for their insurance premiums, such as:
- Bundling your home and car insurance with the same provider.
- Maintaining a good credit score.
- Installing fire-resistant materials in your home.
- Living in a gated community.
- Neighborhood watch programs.
Security Cameras vs. Full Alarm Systems
Security cameras alone may not always trigger an insurance discount. However, they often qualify when combined with other features, such as:
- Alarms.
- Motion detectors.
- Professional monitoring.
What Types of Security Systems Qualify for Discounts?
The types of security systems that qualify for insurance discounts vary from one insurer to another.
In general, a comprehensive and professionally monitored system is more likely to receive a discount than standalone devices. The following are some security system configurations that may help lower your home insurance premiums.
1. Monitored Alarm Systems
We, along with most insurers, consider monitored alarm systems the gold standard for home security. These systems involve professional monitoring services that continuously check on your home for any signs of intrusion or emergency.
Whenever an alarm triggers, the monitoring service immediately contacts you and dispatches emergency services if necessary.
Many insurance companies view professionally monitored alarm systems as highly effective in deterring burglars and reducing property damage. As such, they may offer discounts ranging from 2% to 15% for homes with these security setups.
2. Burglar Alarms, Fire/Smoke Detectors, Flood Sensors
Combining your security cameras with other smart home devices such as burglar alarms, fire/smoke detectors, and flood sensors can provide even more comprehensive protection for your home.
Burglar alarms help detect unauthorized entry. They come in various forms, from basic door and window sensors to motion detectors and glass-break sensors.
In the event of an intrusion, the alarm will blare to deter the intruder and notify you or the monitoring service of the breach.
Home insurance covers fire and smoke damage, so they’ll perceive your home as a lesser risk when you install fire/smoke detectors on top of your burglar alarm.
3. Smart Home Integration
Smart home technology enables the integration of numerous home security devices and features, including AI capabilities. One of the biggest advantages of a connected smart home security system is that it enables remote control through a smartphone app.
It’s easy to arm and disarm the system, monitor live video feeds, receive real-time alerts, and more from anywhere as long as there’s an internet connection.
You can automate your security system to work in tandem with other smart home devices such as lights and thermostats.
For example, you can program your lights to turn on upon motion detection or have your thermostat regulate temperature when you leave the house. That way, intruders will think there’s always someone home even when you’re away.
Some systems feature remote locking and unlocking of doors, which can be useful if you have guests arriving while you’re away or if you need to let in a delivery person.
Many smart systems come with environmental sensors that can detect smoke, fire, carbon monoxide, and water leaks. Of course, insurers will consider your home to be less of a risk if you have these features.
Do Security Cameras Lower Home Insurance?
Some insurance companies may offer discounts on home insurance if you have surveillance cameras installed.
Why Some Insurers May Offer Discounts for Security Cameras
Security cameras make your home less of a risk than properties without them. With security cameras, you can record footage of any potential break-ins or evidence of property damage.
The evidence from security cameras helps identify, prosecute, and sue criminals who cause damage to a home. So, invaders are likely to think twice when they know you have home surveillance.
When there’s theft, it’s easier for you and your insurers to validate your claims with recorded footage from security cameras. It translates to a faster and smoother insurance claims process for you.
It’s also easier for your insurance company to sue the thief if they’re caught on camera.
Security Cameras Alone May Not Guarantee a Discount
Security cameras can reduce your home insurance premium, but it’s not always the case.
Some insurers demand extra security measures to qualify for a discount.
Security cameras can deter theft and vandalism, but they can’t prevent other disasters, such as fire. Therefore, additional measures such as smoke detectors, fire alarms, and reinforced windows and doors may be required to qualify for a discount.
Sometimes, burglars will ignore security cameras, so additional measures, such as motion-sensing lights and alarm systems, may be necessary for maximum protection.
Other Benefits Beyond Insurance Discounts
1. Peace of Mind for Families and Homeowners
It’s no fun filing an insurance claim after losing valuables and sentimental items in a burglary. Home invasions don’t just threaten material possessions; they also put families at risk of physical harm.
Security systems and cameras increase protection for everyone in the household. Homeowners can relax more easily knowing that their loved ones are safe and secure.
2. Saving Life and Property
Modern home security systems also integrate with sensors that detect:
- Fires.
- Water damage.
- Carbon monoxide leaks.
When these hazards are detected early, they can prevent costly property damage and even save lives.
3. Remote Control and Monitoring
Convenience is a big deal in home economics, and so are utility costs. You can gain extra convenience while shrinking your energy bills by installing smart features in your home security system.
You can also conveniently monitor and control many aspects of your home from far away, including:
- Locking mechanisms.
- Watering systems.
- Alarm systems.
- Cameras.
- Lighting fixtures.
Did you leave home in a hurry without switching off the lights, and won’t be back until late at night? That’s how power bills can accumulate, but you can switch off the lights remotely while at work via your smartphone.
What about your empty fridge? You can also switch it off from your vacation spots thousands of miles away.
You can save time and utility costs by remotely controlling your home’s thermostat, lights, and appliances.
Some systems even allow for voice control through virtual assistants, such as Amazon Alexa or Google Home, adding an extra layer of convenience. It’s ideal for folks with mobility issues or busy schedules.
4. Increase in Property Value and Buyer Appeal
As home automation tech advances and becomes more popular, properties equipped with these systems are becoming more desirable to buyers.
A smart home system will boost your property’s value and make it stand out in a competitive real estate market.
If your security system qualifies you for premium discounts, your property’s marketability could also increase, making it an even more attractive investment.
Steps to Get a Security System Homeowners Insurance Discount
To take advantage of potential insurance discounts, follow these steps:
Research Providers
Explore different home security system providers and their insurance partnerships. Seek the most comprehensive coverage and potential discounts.
Choose a Reputable Provider
Once you have narrowed down your options, choose a reputable home security system provider with positive reviews and customer satisfaction ratings.
If you already have insurance, contact your insurer to confirm eligible systems.
Install a Qualifying Security System
It’s time to install a qualifying security system. Select qualifying security systems that put your mind at ease and meet your unique needs.
Provide Proof of Installation/Monitoring Certificate
The insurance industry relies on documentable proof. It’s big on due diligence, paperwork, and accountability. Therefore, your insurer will likely request proof of installation or a monitoring certificate to verify the qualifying security system.
Revisit Policy Regularly for Updated Discounts
You have to review your insurance policy regularly for any updates or changes in discounts. As technology evolves, new security systems with better features and capabilities may become available, which could qualify for a larger discount on your insurance premium.
Why Choose Kentucky Secured for Your Home Security System?
Kentucky Secured is a trusted security company that offers top-of-the-line home security systems. We provide a range of solutions, including video doorbells, cameras, and garage controls.
Our full systems include a digital panel, a flip card, and a smartphone control app. We offer customizable packages and experienced technicians, allowing us to tailor a security system that meets your specific needs and budget.
Our customer service team is always happy to answer any questions.
