Security Systems and Homeowners Insurance Discounts: What You Need to Know
Homeowners insurance providers offer premium discounts for security systems and protective devices. Plus, it adds peace of mind for one of the biggest investments you'll make.
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Does a security system help my home insurance?
Yes, it can help protect your assets, reduce risk, and you can earn a homeowners insurance discount for installing a security system. Many insurance companies offer discounts for policyholders who install home security systems. While the amount can vary from one insurer to another, homeowners can receive discounts of up to 10% for having such home safety systems in place. These discounts may not be available from every insurer, so consult your insurance agent or company to find out more.
While certain restrictions may apply, the following home insurance companies may offer savings for those with security systems and smart home-monitoring technology:
- American Family Insurance
- Farmers
- Liberty Mutual
- Nationwide
- Progressive
- State Farm
- The Hartford
- Travelers
Read on to find out more about how a home security system can impact your home insurance rates.
Home insurance discounts for security systems
Keeping your home secure is not only important for your peace of mind, but also for your home insurance premiums. On average, a theft claim can raise insurance rates by around 20%. With theft being the second most common homeowners claim — the first being fire damage — it’s easy to see why homeowners would want to consider taking precautions.
| Security System Type | % Savings | |
|---|---|---|
| None | $1,478 | - |
| Burglar Alarm - Central Station | $1,441 | 3% |
| Burglar Alarm - Police Department | $1,450 | 2% |
| Burglar Alarm - Local | $1,464 | 1% |
Insurance companies see the installation of a security system as you doing your part to protect your home. By deterring crime and reducing the risk of certain perils, you may be less likely to file claims, making your insurance company less likely to lose money by paying out claims. This decreased risk may result in cheaper insurance premiums for the policyholder in the form of a discount or credit.
Why use a home security system?
Home security systems are put in place to protect your home, your valuables, and your family. Such systems should be purchased by anyone who wants to enjoy a sense of added security both while at home and away.
Home security systems could be particularly important if you live in or near an area with frequent incidences of property crime. Homeowners insurance companies consult crime rate databases when issuing policies and rates, so installing a home security system could help alleviate the insurance company's concerns. This could possibly lead to less expensive rates.
If you are insuring a high-value home, you should consider installing a home security system. In fact, for homes of a certain value, many companies may even require that a security system be installed and actively monitored before they will even offer coverage. Higher-value homes are, in many cases, more expensive to repair or rebuild and are more likely to be seen as potential targets of burglary.
High-Value Homeowners Insurance Guide | The Zebra
High-value homeowners insurance offers coverage at $750,000+. It includes high liability limits and guaranteed replacement cost to safeguard investments.
Don’t pay more than you need
Types of home security systems and features
Home security systems can also extend beyond burglar alarms. Systems designed to monitor or prevent damage from fire or water can also lead to home insurance discounts.
Many insurers provide discounts for the following security-focused home add-ons:
- Fire alarm
- Smoke detectors
- Deadbolts
- Fire extinguishers
- Sprinkler systems
- Water leak detection systems
Fire protection is another area where a home security system can come in handy. Fire is the number one cause of home insurance claims. Many of these systems can include fire and smoke detection sensors that can quickly alert your local fire department. Early detection can dramatically lessen the damage that a fire can cause.
Homeowners insurance companies utilize smart home features to help protect homes and homeowners. A growing number of home insurance companies are even offering discounts for smart home features.
Technological advancements in monitoring systems have led to more protective devices being connected to the internet, allowing for up-to-the-minute safety monitoring. Known as the “Internet of Things,” this technology allows for everyday items to be Wi-Fi compatible for extra safety. Devices such as smoke detectors and security systems can now be monitored via smartphone, even while the homeowner is away. If your security system includes cameras, these can also be monitored while you are away.
Some companies may even provide rebates for the systems themselves. In general, expect home insurance companies to invest even more in safety monitoring technology as the field continues to expand.
Water damage is a major concern for homeowners, as one incident can easily cause thousands of dollars in damage. WI-Fi-connected water sensors can detect leaks and increases in humidity to help avoid serious water damage. Such detection systems can detect any possible leaks and even shut off the water source before the damage becomes severe. This can save you and your insurance company a great deal of money in the long run.
Home security and discounts: considerations
Installing a home security system should be less about the discount and more about protecting your family and your belongings. In many cases, such systems can prevent or mitigate painful or expensive losses. If you are contemplating installing a security system purely for the homeowners insurance discounts it can provide, you might not recoup your costs: installation and monthly monitoring fees may offset any insurance savings. Still, the added costs are often worth the peace of mind that a security system can bring.
The best way to find the cheapest home insurance rates is to compare rates from multiple insurance companies. The Zebra offers an easy way to get free home insurance quotes from popular insurance providers. Simply enter your ZIP below to get started.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.