A monitored home security system protects you, your family, and your home against intruders, and that is reason enough to have one installed. But there is a bonus to having a security system that makes the decision to get one even more attractive: you could save a bundle on insurance.


Save on Premiums

Many insurers offer deep discounts when a homeowner has a home security system. You can save 15 to 20 percent on premiums. However, those kinds of savings are reserved for monitored systems that notify authorities when there is a problem.

The reasoning behind the deduction is that 83% of home burglars report that they watch for alarm systems when choosing a home to break into. As many as 60% said they would move on to another home if they saw a security system in place. These figures come from a study published by UNC Charlotte.

To put it simply, a home that is less likely to be broken into will have a greatly reduced chance of needing the insurance company to pay claims. Insurers like this, so they discount insurance for protected homes.

You can reduce your premiums even further. If you opt for additional features on your home security system, the insurance company may charge less. For example, a monitored smoke alarm lets insurers know that your home is less likely to burn than an unmonitored one. This means the insurer is less likely to find itself in the position of having to pay expenses for fire damage claims. The result is discounted premiums for you.

Reduce the Likelihood of an Increased Deductible

Insurers tend to raise a homeowner’s deductible once a home has been burglarized. The deductible is the amount you must pay out of pocket before insurance coverage kicks in. By keeping your deductible low, you have less risk of incurring expenses on insurance claims.

Improve the Neighborhood’s Theft Ranking

Insurance companies not only consider an individual home’s prospects for being burglarized; they monitor the rate of thefts for entire neighborhoods. By protecting your home, you help keep the “theft claim quota” down for your entire area. This means your neighbors-and you-will get a better insurance rate.

Save on Replacement Costs

Many homeowners overlook another way they save money with a home security system. You can save on the expenses associated with a break-in. Even if the insurance company covers your belongings once you have met your deductible, you may not get the full value for every item. This means money out of your pocket to replace those items. Also, you could have to find temporary quarters while your home is being secured and repaired. Preventing a crime is much less costly than recovering from one.


The Bottom Line

Gambling with the safety of your home can cost you dearly if you lose. The average number of burglaries each year is 3.7 million. In almost 30% of these incidents, someone was home during the event, and 7% of those became victims of violence during the burglary. Add the financial costs of remaining unprotected, and it becomes clear that a home security system is an essential responsibility for every homeowner.