A home security system can provide peace of mind for homeowners, and it can also save you money on your home insurance premiums. Many home insurance companies offer a discount for homeowners who have a security system installed. Below we will go over the different types of security systems and how each will affect your homeowner’s insurance premiums.
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The benefits of having a security system:
There are a lot of benefits to having a security system installed in your home. Not only will it provide peace of mind for you and your family, but it can also save you money on home insurance. A home security system can act as a deterrent to burglars, and help to protect your home in the event of a fire or another type of disaster.
There are different types of home security systems:
There are many different types of home security systems available on the market. Some of the most popular home security system features include:
- Burglar alarm
- Fire alarm
- Home automation
- Surveillance cameras
- Water Turn-Off Device
- Water Detection Device
How to choose the right security system:
When choosing the right security system you should consider your needs and budget. There are many different home security systems available on the market, so it is important to do your research to find the right system for your home. Also, you will want to take into consideration whether it will have a higher impact on your homeowner’s insurance rates or not.
Which types of security systems will give me a discount on home insurance?
- Central Alarm Systems – Central Alarm System means that if a fire or break-in was to happen that it would alert the proper authorities immediately with no action needing to be taken by the owners. This type of system is the largest discount you can receive on home insurance.
- Local Alarm System – Local Alarm Systems means that a siren or alert would happen in the event of a fire or break-in. This type of system will not alert the proper authorities. Many DIY systems will have the option to hook up to the central alarm or have it just as a local alarm.
- Smoke Detectors- Smoke detectors generally are required by the insurance carrier but some insurance companies will provide a discount just for having them.
- Sprinkler System – a sprinkler system is a home security system that is used to help extinguish fires. Generally, you will see these systems in some condos, apartments, and businesses.
- Automatic Water Shut-off – Automatic Water Shut-Off is a home security system that will automatically shut off your home’s water in the event of a leak.
- Low-Temperature Sensor – Low-Temperature Sensors are home security systems that will alert you if the home’s temperature drops below a certain level to help prevent freezing pipes.
- Smart Devices – Smart Devices that you can control from your phone have been extremely popular in recent times and more insurance companies are starting to provide discounts so make sure you are asking your insurance agent if your security system has smart abilities.
What do I need to provide my insurance agent with to prove I have an alarm system?
If you are getting the system professionally installed for a central alarm, you can ask the provider for an alarm certificate to give you your insurance agent. This generally is the only document that would be required for getting the central alarm system discount.
If you only have a local alarm system, the insurance companies usually will not require any documentation since the alarm will not be contacting the police or fire department. Keep in mind though the discount for a local system is much less than a central alarm.
How much money will I save on my homeowner’s insurance premium if I get a security system?
On average, you can expect to save $30-$80 on your annual homeowner’s insurance premium. It is always best to ask your agent what the savings would. Many factors go into these discounts and results will vary.
A home security system is an important investment that can provide homeowners with peace of mind and discounts on their homeowner’s insurance. There are many different types of security systems available, so it is important to do your research and find the right one for your needs. Be sure to provide your insurance agent with proof that you have a security system to receive the best rates.