Home Security System Insurance Discount

Having a monitored home security system in your home gives you peace of mind, in knowing that your home and family are being constantly being protected. However, a lot of people aren’t aware of some of the other benefits of home security systems besides their ability to lower the risk of burglary. If you have homeowner’s insurance, your security system may make you eligible to save a substantial amount of money.

How Can a Security System Save Money?

Besides being a cost-effective way to help prevent property loss due to burglary, many homeowner’s insurance policies offer a substantial discount for homes that are protected by a security system. This is one of the best benefits of having a home security system, and one that many people aren’t aware that they may take advantage of.

How Much Money Will I Save on Insurance?

Depending on your security system, the amount you may save can vary from 5% to up to 20%. For security systems without monitoring, or the simple installation of deadbolt locks on your doors, you will probably save around 5%. However, with a verified security system that has been properly installed, and that includes monthly monitoring, you will most likely save closer to 20%. Here’s an example of how much you could save with a monitored security system:

  • Yearly Homeowner’s Insurance: $1,500
  • 20% Savings: – $300
  • End Cost: $1,200 per year

As you can see, a monitored home security system can save you a substantial amount of money. To look at it with a slightly different viewpoint, in this example, the 20% savings would equate out to a $25 per month savings on your homeowner’s insurance. For a monitored home security system, your monthly cost (average) would usually be from $30 to $40, for basic monitoring. With the $25 per month discount that you are receiving for having your system, your security monitoring is actually only costing you from $5 – $25 per month.

Why do Insurance Companies Offer This Discount?

From the insurance company’s standpoint, they want to reduce the number of claims that they receive each year. A home security system, especially a monitored security system, helps to protect your home from damage, property theft and other emergencies. By having a security system in your home, you are lowering the chances of an event that would cause you to file an insurance claim. Since this helps the insurance company, they motivate homeowners to have a security system by offering a discount.

What Do I Need to Do?

Call Your Insurance Company

Different homeowner’s insurance companies have different policies regarding what they require from you in order to grant you a home security discount. This may include verified installation, verifying your security system or verifying that your system has monthly monitoring.

Call Your Home Security Company

Many home security companies will offer “insurance certificates” upon request. Most insurance companies will accept an insurance certificate from a highly rated home security company. Be sure to obtain a list of approved companies from your homeowner’s insurance company.

A Note About Installation

Depending on your insurance company, it may be required that your security system be installed by a trained professional. It’s extremely important that you gain this information before installing your system.

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Comments

Adig Hosh / May 7, 2013
Nice Offer On The Security System.