How to Save on Home Insurance With a Security System
Most home insurance companies offer discounts for having a security system. Homeowners who install them can save up to 20%, but discounts vary by insurer.
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Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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A home security system protects your home and often qualifies you for lower homeowners insurance rates. And with today’s technology, security systems are more accessible and affordable than ever.[1]
Discounts for a security system vary by insurer, so it’s a good idea to shop around to find the best rates. Other security measures, like high-quality deadbolts and locks, can help you save even more. Learn about some security measures that can lower your home insurance rates and how much you might save.
Home insurance companies with security system discounts
Many home insurance companies offer discounts for homes equipped with security systems. You can lower your premiums by as much as 15%–20%, depending on your location and the type of system you install.[2]
Here’s a list of some insurance companies and their typical security system discounts.
Insurance Company
Discount for Security System
State Farm
Up to 6%
Nationwide
Up to 10%
USAA
5%–20%
Allstate
Varies by location and device
Farmers
Varies by location and device
Discounts can vary by location and the type of system you have. For you to qualify for this discount, some insurance companies require specific types of systems, such as those that a professional service monitors.
To qualify for a discount, you’ll typically need to provide proof of installation, such as a copy of your security contract or a certificate from the security company. Check with your insurer to understand its requirements and how you can maximize your discount.
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Security measures that can lower your home insurance rates
Other security measures around your home provide added protection against burglary, fire, or other emergencies and potentially lower your home insurance rates. Ask your insurance company if discounts are available for adding the following safety measures:
Upgraded locks and deadbolts: High-quality locks and deadbolts make it harder for intruders to break into your home. Insurance companies recognize this added layer of security and may offer discounts for homes with upgraded locking mechanisms.
Security cameras: Visible security cameras deter potential burglars and provide valuable evidence in case of a break-in. Your insurance company may lower premiums if you install a camera system.
Smoke and carbon monoxide detectors: Add these detectors to quickly detect fires and gas leaks, which can help prevent extensive damage and loss of life. Homes equipped with smoke and carbon monoxide detectors often qualify for insurance discounts due to the reduced risk of catastrophic claims.
Reinforced doors and windows: Strengthen entry points with reinforced doors and shatterproof windows to prevent easy access into your home. Insurance companies may offer lower rates for homes that take these extra precautions against break-ins.
Smart home technology: Smart home devices, such as automated lights and smart locks, enhance your home’s security by allowing remote monitoring and control. Consider adding these technologies to deter criminals and lower home insurance premiums.
Home security system options
Choosing the right home security system protects your home and allows you to take advantage of valuable insurance policy discounts. Here are a few reputable options to consider.
ADT
ADT offers both self-setup and professional installation and monitoring services for home security solutions. Its systems can include door and window sensors, motion detectors, fire and carbon monoxide detectors, and security cameras. The company is known for its reliability and extensive monitoring network, ensuring rapid response times.
Pros
24/7 professional monitoring
Customizable packages
Long-standing reputation
Cons
Higher cost compared to DIY systems
Long-term contracts required for some systems
Installation can be expensive
SimpliSafe
SimpliSafe offers a DIY installation system that’s easy to set up and use, or you can opt for professional installation. The company offers multiple packages to meet your needs and budget, and packages include various sensors, cameras, and environmental protection devices. Its flexibility and affordability may make SimpliSafe a popular choice for budget-conscious homeowners.
Pros
No long-term contracts
Affordable pricing
Easy DIY installation
Cons
Limited smart home integration
Equipment costs can add up
Professional monitoring is optional and costs extra
Ring Alarm
Ring Alarm offers a comprehensive security solution with DIY installation. The system includes door and window sensors, motion detectors, and smoke detectors with a built-in battery backup to ensure your home is protected even if you lose power. Its integration with Ring video doorbells and cameras and Amazon Alexa makes it stand out.
Pros
Affordable and scalable
Easy integration within the Ring ecosystem
No long-term contracts
Cons
Limited third-party smart home integration
Professional monitoring is optional and costs extra
Some features require a subscription
Vivint
Vivint provides professionally installed systems with advanced home automation features. The company’s system includes a variety of sensors, cameras, smart locks, and other smart home devices that work together to create a highly automated and connected home security solution.
Pros
High-quality equipment
Excellent smart home integration
24/7 professional monitoring
Cons
High up-front costs
Long-term contracts required
Expensive professional monitoring
How to save on homeowners insurance
Alarm systems, fire alarms, and smoke detectors keep your home and belongings safe and often lower home insurance premiums. But several other strategies can also help you save money on your policy:
Bundle your policies
Many insurance companies offer discounts if you bundle multiple policies, like home and auto insurance, with the same company. This can lower your premiums and make it easier to manage your insurance.
Increase your deductible
Opt for a higher deductible to lower your homeowners insurance premiums by up to 25%. Be sure to choose a deductible you can afford to pay out of pocket if you need to file a claim.
Maintain good credit
In some states, insurance companies use credit history to determine rates. Good credit indicates to insurers that you’re less likely to file a claim, so maintaining strong credit often leads to lower insurance premiums.
Make home improvements
Upgrade your home’s electrical, plumbing, or heating systems to reduce the risk of fire and water damage and lower your insurance premiums. Install storm shutters or reinforce your roof for even more discounts.
Compare home insurance quotes
Insurers offer different discounts and coverage options, so it’s a good idea to review your options carefully. Shop around and compare quotes from multiple insurance companies to find the best coverage at the lowest rate.
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Home insurance discounts for security FAQs
Understanding how different security measures affect your home insurance premiums can help you maximize your savings. Here’s some additional information about home security and insurance discounts.
How does homeowners insurance define home security?
Homeowners insurance companies define security as measures taken to protect your home from theft, vandalism, and other risks. These measures can include burglar alarms, locks, motion sensors, exterior lighting, cameras, and other preventative measures.[3]
What is the 80% rule in insurance?
The 80% rule, also known as the 80/20 rule, states that you must insure your property for at least 80% of its replacement cost. If you choose lower limits, your insurance company may not cover the full cost of a claim.
Does SimpliSafe reduce homeowners insurance costs?
Maybe. Some insurance companies only offer discounts for professionally installed and monitored security systems, and SimpliSafe is mostly DIY. Check with your insurance company or agent for information on specific discounts and requirements.
Janet Berry-Johnson, CPA is a freelance writer with a background in accounting and income tax planning and preparation. She's passionate about making complicated financial topics accessible to readers. She lives in Omaha, Nebraska with her husband and son and their rescue dog, Dexter. Visit her website at www.jberryjohnson.com.
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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