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Can a Home Security System Get You Better Insurance Rates?


Studies have shown that the average homeowner pays around $800 each year in insurance premiums. One way to lower these costs is to have a monitored home security system installed. Some insurance companies are actually encouraging homeowners to have a system installed by offering discounts on their premiums.


Larger insurance companies claim to offer discounts as high as 20 percent for homeowners who have monitored systems installed. Studies show that homes with alarms installed are more than 50 percent likely to be the victims of burglaries, which is one reason why insurance companies offer these discounts. Homes in the United States are burglarized about every 15 seconds with the average loss being around $2,000. Home security systems seem to be a small price to pay to save this much in valuables not to mention the heartache that goes along with being burglarized. When you factor in the discount that most insurance companies offer for this added level of protection, it becomes clear why more and more homeowners are choosing to have a home alarm system installed.


There are a number of different factors that go into determining the overall cost of homeowner’s insurance. Generally, the cost of homeowner’s insurance is based on the risks involved. If your home is at a greater risk for flooding then your premiums may be a bit higher to cover these risks. On the same note, if your home is at a higher risk of being burglarized then your premiums may also be higher. Alternatively, when your risks of being burglarized are lower, your insurance premiums will often be lower. The risk of a home burglary is calculated in when determining overall insurance rates so having a quality home security system installed will naturally lower those costs because it lowers your risks.


How much you can save on those premiums will depend on your insurance company and on the type of system that you have installed. Most companies prefer monitored systems because they offer the most protection. Monitored systems are those that have a remote monitoring service that will alert the proper authorities if and when something happens in your home. If for instance, you experience a house fire and the service is unable to reach you by phone, they will automatically contact the fire department on your behalf. Monitored systems seem to be preferred by insurance companies and are the systems that normally get homeowners a major discount on their premiums.


While there are costs associated with purchasing a home security system and having it installed and monitored, you can expect these costs to even out when you save on your homeowner’s insurance. You also get the peace of mind that comes with knowing that your home is protected from a number of risks including theft and fire. Many people simply feel much safer and more secure when they know that they have a monitored system installed. Not only does the insurance company appreciate the steps that you have taken toward protecting your home, you and your family will appreciate it as well. In San Diego, the savings on homeowner’s insurance can be significant.

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