How Much Does a Security System Affect Home Insurance?
Make sure you “lock” down a great policy
Highlights
Home insurance premiums are affected by factors that include location, home value, claims history, and security features.
Homeowners can save up to 20% off their home insurance by installing security measures.
On average, homeowners insurance costs $1,500 a year.
Burglar alarms, surveillance cameras, and 24/7 monitoring can significantly lower home insurance costs.
Many homeowners are discovering that a reliable security system can do wonders not just for peace of mind but also for their wallets. Installing a security system can influence your home insurance rate, potentially saving you hundreds of dollars. Let’s break down how much a security system can affect your home insurance as well as the features insurers look for and how you can maximize your savings.
What Factors Affect Home Insurance?
Home insurance isn’t mandatory by law, but if you’re paying off a mortgage, your lender will likely require you to carry coverage to protect their investment. When determining your insurance premium, insurers focus on several factors—location, home value, claims history, and security measures.
It’s a common misconception that security is only about preventing theft or burglary. In reality, security includes any measures you take to keep your home and family safe. Insurers appreciate when homeowners take steps to enhance their security because it minimizes risk. This can mean anything from having a solid fire safety plan to having carbon monixide detectors on every floor.
Homes that prioritize safety often show lower risk to insurers, which can lead to better rates. A strong security system not only protects your belongings but also reduces the likelihood of claims related to accidents or damage. So, by investing in comprehensive safety measures, you’re not just protecting your family and property. You’re also setting yourself up for better insurance options. It’s about creating a safe space, for both your peace of mind and your wallet.
How Much Can You Save on Home Insurance with a Security System?
Investing in a security system can save you money on your insurance. On average, the cost of homeowners insurance is about $1,500 annually with most paying between $900 and $1,800. However, by installing security features like alarms, surveillance cameras, or smart home technology, you could get discounts ranging from 5% to 20%. That means a potential savings of up to $300 a year. Just know—the amount of your discount, if any, varies by insurer. So, it’s a good idea to shop around and check with your provider.
What Types of Security Features Lower Home Insurance?
Some security measures and upgrades that can increase your safety and decrease your insurance premium include:
Security Systems
If you want to save on your home insurance, a home security system is one of the smartest decisions you can make. The amount you save will vary based on the features and technology you choose, but here are a few key features that can help secure a discount:
Burglar Alarm: Alerts you and the authorities if someone tries to break in.
Surveillance Cameras: Monitors and records activities around your property.
Door and window sensors: Triggers when doors or windows are opened unexpectedly.
Motion sensor lights: Brighten up outdoor spaces when they detect movement.
Professional monitoring: Notifies a professional team whenever an alarm goes off, ensuring help is dispatched quickly in case of a break-in or emergency.
Smoke Detectors and Fire Alarms
Most insurers require smoke detectors for a policy. Fire damage is one of the most expensive claims for insurers, so they often reward homeowners who take fire safety seriously. By installing smoke detectors on every floor of your home, you’re likely to get a discount. If you level up to a fire alarm that connects to a professional monitoring service, you could see an even bigger reduction in your premium.
Fire Extinguishers
If you have fire extinguishers on every floor—especially in key spots like the kitchen and near electrical equipment—you could receive savings on your insurance premium.
Sprinkler Systems
Sprinklers act quickly to control or extinguish fires, helping protect your property and reassuring insurers that they won’t face hefty damage claims. Because of this added security, some insurance companies offer discounts of 15% to 20% for homes equipped with sprinkler systems, particularly in high-risk areas like kitchens and main living spaces.
Deadbolts
Deadbolt locks are a budget-friendly way to boost your home’s security and possibly earn a discount on your homeowners insurance. To qualify, make sure you have deadbolts installed on all exterior doors—this could lead to savings of up to 10% off your premium. Insurance companies also consider smart locks with keypads or facial recognition features when deciding your premium.
Choosing the Right Security System
Choosing the right security system starts with setting a budget that works for you as prices can vary based on features and monitoring options. Consider what’s essential for your home—do you need burglar alarms, surveillance cameras, or smart home integration? Think about whether you want a self-monitored system or one with professional monitoring for added peace of mind. And if you’re stuck, it’s always a smart move to reach out to a home security systems professional who can guide you through your options and create a custom solution that fits your needs.
Frequently Asked Questions
Yes, a DIY security system can qualify for home insurance discounts, as long as it includes key features like cameras, motion detectors, or alarms that effectively deter break-ins. While insurers often lean towards professionally monitored systems, they generally value any proactive measures you take to boost your home’s security. Just make sure your system is properly installed, and keep your insurer in the loop about its features and any monitoring systems you’ve set up.
You don’t need to completely revamp your security system constantly, but it’s a great idea to give it a once-over every year. Look for potential upgrades or new features—like smart home tech or replacing outdated equipment—that could boost your safety. If you make any significant changes, let your insurer know as they may adjust your discounts to reflect your improved security. Staying on top of your security not only keeps your home safe but ensures you’re getting the best possible rate on your insurance.