When quoting you a rate for homeowners insurance, the insurer will take into account various factors related to your property, including the likelihood of and vulnerability to theft and break-ins. One way to make your home safer and at the same time reduce insurance costs is by installing a home security system.
How much can you save on home insurance rates if you install a monitored security system?
According to the Insurance Information Institute, homeowners could save between 15 and 20 percent on their insurance premiums if they install a full home security system that is monitored by a third party 24/7 aka Central Station monitoring. The exact discount percentage will, however, vary from company to company and also depends on the different types of protective devices that your security system includes.
If you have a home that’s insured for more than a million dollars, carriers such as AIG and CHUBB could actually REQUIRE a professionally-monitored security system to be installed.
To qualify for the maximum discount, you will need a system that monitors for both burglary and fire. A burglary-only system will still earn you a discount, but not the highest possible percentage.
Note: Even if you can’t afford to install a complete home security system and have it monitored around the clock, installing just a standard burglar alarm that makes enough noise to alert the neighbors will earn you a discount from many home insurers. Discuss this with your particular home insurance firm.
What other security features/devices can earn you a discount on home insurance premiums?
Deadbolts. Installing deadbolts on your home’s doors is probably one of the cheapest ways to qualify for a discount on your home insurance premiums. In order to qualify for reduced premiums, however, you will probably have to install deadbolts on every single exterior door of your home. Only installing a deadbolt on the front door might not be sufficient.
Other security devices. Most insurance companies will typically also include security features such as keypads, smart locks, and facial recognition systems in the same discount category. One of the newer entries in this category is an easy-to-install video doorbell that enables you to use your smartphone to answer your door from wherever you are. It offers brilliant HD video, a two-way radio, and motion-activated cameras. Certain home insurers already offer a 5 percent discount on homeowners insurance if you have this device installed.
Smarthome monitoring system. Some insurance firms will also give you a discount on your home insurance premiums if you use a smarthome monitoring system that is linked to your cellphone. These systems are not connected to a third party monitoring room, they just let you know via your phone if something happens at home that triggers the alarm.
Water leak detection system. Since water damage is one of the biggest sources of insurance claims, it should not come as a surprise that another way to earn a discount on your home insurance premiums is by fitting a water leak detection system. Such a system will inform you or a third party the moment a leak is detected.
Quite a few insurance companies are nowadays also offering these systems at a discounted price to their policyholders.
Auto shut-off water leak detection systems. To earn an even bigger discount on your home insurance premiums, you can install a system that automatically shuts off the water supply the moment flooding is detected.
Monitored smoke detectors. These are typically connected to your security alarm system to help reduce the risk of fire. Monitored smoke detectors give you peace of mind knowing that the central monitoring station will immediately know when an alarm is triggered and that it, for example, came from your study. Installing these will typically also have a positive effect on your home insurance premiums.