Can You Save on Home Insurance With a Security System

Can you save on home insurance with a security system? Yes. If your home has safety devices such as smart locks, deadbolts, burglar alarms, or a security system, you may qualify for a home insurance discount of up to 10 percent. Homeowners who have more than one safety device or a security system that works 24/7 in their homes can qualify for more discounts.

Can You Save on Home Insurance With a Security System

Homeowners with security systems in their homes pay less than average on their insurance premiums than those that don’t. This is because security systems reduce homeowners insurance rates by a certain percentage based on the insurance provider. If you qualify for a home security discount, it will be indicated on your policy’s declarations page. Read through this write-up for insights.

How Much Can I Save on Home Insurance With a Security System?

Depending on the insurance company you work with, a discount of 2% to 5% on premiums is offered if you install a security system in your home. While some insurance companies do this, most of them offer up to 15% discounts on premiums for a security system. For instance, if your insurance provider offers a 10% discount on premiums for a security system, this means that if your premium is $1,500, you will be saving $150 yearly, or $13 monthly.

Types of Security Features that Reduce Your Home Insurance Rates

Some insurance providers offer different policy discounts for deadbolts, security systems, and fire sprinklers, while others offer discounts for multiple surveillance features and safety on a single policy.

However, both the safety type and discount availability depend on the insurance company. The following are some types of security features that reduce your home insurance rates:

Home Security Systems:

This added level of security can get you a larger discount on your home insurance premiums, making it the best option to go for. Most security firms provide a professional security or monitoring system that operates 24 hours a day, 7 days a week, 365 days a year. Some smart home monitoring systems like ADT or Ring are also a good idea to consider.

Deadbolts:

To receive a policy discount, installing deadbolts in all your home’s exterior doors is a good step. If you have only a single deadbolt on your front door, it may not be enough to secure you an insurance discount. Insurance providers may also likely add smart locks with facial recognitions or keypads to their discounts category.

Burglar Alams:

Standard burglar alarms that are loud enough to be heard by neighbors are still made by many companies. Most insurance companies offer a slight discount for this extra bit of home security.

Gated Community Discount:

If your residence is situated within a gated community, you may be eligible for insurance discounts due to the heightened security associated with living in such an exclusive environment.

Insurance Companies That Offer Security System Discounts

Most insurance providers offer discounts to homeowners who add a security system to their homes. These insurance companies include:

  • GEICO.
  • Allstate.
  • Farmers.
  • Liberty Mutual.
  • Progressive.

These companies indicate their discounts on their websites, helping homeowners identify the right insurance provider to select. However, getting a full 20% insurance discount depends on how good your home security system is.

Other Ways to Save on Home Insurance

If your home insurance provider does not offer discounts for home security systems, there are other ways to save on home insurance you can consider. Consider comparing several lenders for the best insurance rates and discounts. If you do not intend to change providers, try bundling two insurance policies under the same insurer and see if you will be offered discounts.

However, the average insurance bundling discount is 17%, which could get you to save a lot of money. Aside from this, other ways to save on insurance include increasing your deductibles, making renovations and repairs, and going paperless.

How Can a Security System Help You Save On Insurance?

Some of the ways a security system can help you save on insurance include:

Increase Home Safety:

Insurance companies may offer discounts on premiums if homeowners have a security system in their homes, increasing home safety. The decrease in incidents that may result in property damage could show insurance companies that homeowners are at less risk and are qualified for discounts.

Save Up to 20% on Insurance Premiums:

Homeowners have the potential to witness a reduction of up to 20% in their insurance premiums by investing in a sophisticated home security system. They will not only reduce their insurance premiums but also save on purchasing these systems if they qualify for discounts.

Lower Your Risk:

Insurance companies often charge higher premiums based on the level of risk you pose. To prevent high premiums, ensure you read your policy properly. With a security system, you can reduce the level of risks you pose.