Does Having A Home Security System Reduce Homeowners Insurance?

Can security systems lower your home insurance premium?

Yes, they can. How much depends on various factors, such as the security system you choose and the insurance company you use. 

This article discusses all you need to know about home security systems and home insurance – whether you’re purchasing a camera surveillance system to improve the comfort of your house or want that security alarm to receive a discount on your homeowners’ insurance.

You will also find tips to save on homeowners insurance premiums, so keep reading.

How Does Having a Security System Can Reduce Home Insurance Costs?

According to a report, 62.8% of burglary cases are home break-ins. The property lost in theft is valued at $3 billion.

This results in an enormous number of preventative damage claims/settlements. A security device can stop robbers in a home.

Yet, according to Zebra, 46.9% of homeowners have no home security or alarm system. The higher the claim payment amount, the higher the insurance costs may be.

There is also an issue of insurers increasing the homeowner’s policy premium or rewriting the policy altogether.

Property owners now have more options than ever in home security systems, ranging from DIY wireless systems that are simple to set up to smart home technology that monitors your house’s security while allowing you to manage lighting, temperature, and access at the touch of a button.

A third-party security company maintains security systems are often eligible for discounts from most insurance providers.

Third-party monitoring is sometimes known as central monitoring and refers to the centralized alarm center to which the system sends an alert in the event of an alarm.

Can I Get a Home Insurance Discount For a Security System?

Installing monitored safety and security systems in your house might save you up to 20% on your homeowners’ insurance policy. In addition, many insurance companies offer discounts for safety and other theft prevention measures.

Most insurance companies will give you a 2% to 5% discount on your premiums if you install a home security system, but some insurers will give you a 15% discount.

And give you an extra reduction if you install safety features like smoke alarms, water damage, and water leak detection services.

According to the Electronic Security Association (ESA), A home alarm system can provide alarm discounts of up to 20%.

Most insurance companies also provide these discounts, so it’s a good time to look to yours to see how much money you could save.

Some insurance companies will discount you if you have a security system installed, and then another discount if an insurance agent monitors your system.

Due to the high cost of homeowners insurance, which can range from hundreds to thousands of dollars per year.

Advantages Of Installing Security and Monitoring Systems In Your Home

Below are some benefits of installing security and monitoring systems in your homes.

Peace of Mind and Home Insurance Discounts

Of course, you’ll have more peace of mind knowing that you’re protecting your household. However, if your home is equipped with alarms and monitors, your homeowner’s insurance policy will likely offer additional reductions.

Protects Your Property

Having a security system or burglar alarms can assist you in avoiding filing a claim by alerting you to the threat before it causes damage to your property.

In addition, it saves the insurance company money on losses, which they pass along to you in lower home insurance premiums. Your specific circumstances and the insurance company you select determine your savings amount.

Suppose your smoke alarms or smoke detectors go off while away from home. You can choose to be notified.

Depending on the supplier, you can even set it up so that authorities are immediately aware of certain circumstances.

Deters Robbers and Thieves

The placement of surveillance cameras and a warning sign declaring that the area is under monitoring can significantly deter criminals and burglars. In addition, the recorded footage can be used to classify individuals and trace their activities.

Suppose trained staff regularly examine this footage in commercial enterprises. In that case, it is also feasible to follow suspicious behaviors and the risk of theft by petty thieves and prevent adverse situations before they occur.

With these benefits, you can protect yourself, your loved ones, and your assets.

But on the other hand, Miscreants may be able to get around these systems by obscuring the camera’s view or hiding their faces.

Thus, if there are other cameras nearby, the authorities may be able to pick up comparable facts from a different angle to crack the intricacies of the crimes.

Security Measures That Can Help You Save Money On Your Insurance

Security Systems

Today’s market offers a wide range of security systems, including DIY and professional monitoring alternatives.

Many insurance companies may discount you if you have video surveillance cameras and a home security system with an alarm, door and window sensors, and motion detectors.

These devices are intended to inform you and your neighbors of an incursion and prevent possible offenders.

Fire Alarms and Smoke Detectors

Smoke alarms that are linked to your security system provide additional safety. Before an issue becomes life-threatening, they notify you and the fire department.

Insurance companies like to make preventative efforts to avoid house fires.

While many insurance companies require smoke detectors to be installed to qualify for coverage, having supervised smoke detectors may make you eligible for a discount.

Sprinkler Systems

In addition to having smoke detectors that are monitored, having a sprinkler system can save you money.


Deadbolts are one of the most cost-effective ways to improve your home’s security while potentially qualifying you for a homeowners insurance discount.

Deadbolts must be put on all external doors to qualify for the premium discount.

Smart locks with keypads or facial recognition locks may also be included in this category by insurance carriers.

Fire Extinguishers

Some insurance companies will give you a discount if you have a fire extinguisher on each floor of your house since it can prevent a flame from spreading and causing significant and costly damage.


What Additional Advantages Does a Home Security System Have Besides Preventing Theft?

Aside from deterring would-be burglars, your home security system may also provide fire and smoke protection. Depending on the system, water sensors may be included to detect faults before they progress or to advise you of a faulty HVAC system.

How Much Should I Spend On A Security System?

It depends on your requirements, as it does with most things.

However, you may acquire systems that feature an alarm and wireless motion sensors for a very low price.

You can even secure your sheds and garages with low-cost wireless alarms, making home security easier than ever.

Is My Home’s Insurance Going To Help If Someone Gets Hurt At My House?

Yes. If an accident or damage occurs on your property, liability coverage is one of the most crucial components of your homeowner’s insurance policy. Slips and falls, or dog bites, are just a few examples.

Final Thoughts

I hope that this article has helped you understand why having a home security system reduces homeowners insurance and how you can save money on insurance for your business.

Notify your insurance carrier if you plan to take any of these activities, and you’ll be able to get the most rate reduction possible. Furthermore, nearly all of these security tips will reduce the likelihood of a catastrophic disaster.

Finally, keeping minor mishaps to a minimum lowers your overall insurance premiums.