There’s obvious benefits to a monitored home security system. You’ll have direct access to emergency officials, police, and medical aid in case of an emergency, and your home will be protected from burglars. Modern home security equipment has made it easy for homeowners to keep an eye on their house using home automation technology, and these tools can even be used to time lights, appliances, and keep tabs on kids.
But many homeowners don’t know that home security has an added benefit—it can help you save money on home insurance premiums. That’s right—you’ll cut some costs on insurance and be protected at the same time.
Why? You might be asking. Well, it’s simple. Insurance companies know that with advancements in technology and monitored security systems, these units keep your home safe. The safer your home is, the less-likely you are to file a claim, which saves you and insurance companies money in the long run.
What You Need to Know
Some people have the incorrect idea that the need for home security is negated by the fact that they have homeowners insurance, but this is false. Homeowners insurance is a valuable asset, but it does not keep a home safe, prevent burglary, or alert of professionals of an emergency. Having both assets provides the most financial and safety benefits.
According to a Rutgers study, the biggest discounts come from systems that monitor for fire and intrusion along with home security. The reason for companies is that in addition to discouraging burglars, modern alarm systems also reduce the damage caused by fires. Fire and lightning claims are almost 10 times higher than claims for burglaries and thefts according to statistics from the Insurance Information Institute.
Since an alarm company can alert the fire department of an emergency whether or not anyone is home, this is vital to preventing and limiting fire related incidents.
What Do Companies Look For?
Many companies offer discounts for individuals who have taken measures to increase the safety and security of their residences. Ten of the biggest insurance companies have revealed discounts
The key things insurance companies look for to provide discounts are:
- Home Automation
- Deadbolt Locks
- Monitored Security System
- Monitored Fire Alarms
- Disaster Sensors
Security systems offer a few other added benefits beyond lowering your rate on homeowners insurance. One example: In the unfortunate event of a burglary or if your property is damaged or something worse, you would want to file an insurance claim. Insurance companies will want to inspect the damage and see if it is beyond reasonable doubt that it was inflicted by a cause covered in your policy. Since your home has a security system with video surveillance, you now have a quick and easy way to prove that that your claim is legitimate.
Many companies only provide homeowners insurance savings for monitored options, and savings will vary based on the specific company you work with. The largest savings option we’ve seen is 25%, while many companies are around the 10-15% range. You’ll have to check with your specific company to see the offerings provided.
Home security adds an extra layer of protection to a home, and insurance companies know this. If you are protected from a break-in, fire or other hazardous situation, you’ll be less likely to file a claim with your insurance company, and this is good for them. This means that the insurance company saves money and you save money as a result.