Do Home Insurance Companies Give Discounts for a Having Security System?
Break-ins happen more often than many of us assume. In fact, a burglary occurs every 18 seconds in the US. Stolen and damaged property doesn’t only cost you, but insurance companies as well. For this reason, many insurance providers will use discounts to reward homeowners with security systems installed.
Blue by ADT will explain how much you may save on home insurance, as well as common alarm system requirements to qualify for discounts. Isn’t it time you lowered your rates?
How Much Can You Save on Home Insurance By Purchasing a Security System
Many popular home insurance companies’ websites reference potential discounts for security systems, including Allstate, StateFarm, Progressive, and Farmers.
QuoteWizard estimates that the average saving for owning an alarm system is $59 per year1. The details will vary from one provider to the next, so make sure to talk to your agent to learn what’s possible.
Alarm System Requirements to Qualify for Home Insurance Discounts
Not all security packages offer equal protection, something which insurance companies recognize. Therefore, your provider may have specific requirements your home alarm system must meet before you can receive a discount.
Common home insurance alarm requirements to ask about:
- Whether the alarm requirements allow DIY installation. A growing number of home insurance providers recognize that DIY systems can help secure a house just as well as professionally installed packages. However, there remains a small number of companies that are behind on the times.
Make sure that your home insurance company gives discounts for DIY security systems.
- Whether DIY security system monitoring disqualifies you from insurance discounts. It’s no secret that most providers prefer the added protection of professional monitoring (also known as “central”).
Some may offer you a lesser discount if you opt for self-monitoring (sometimes called “local”). Others may offer no rate reduction.
- Deadbolt requirements. Companies will often consider whether deadbolts are present before they lower your rates. Having the deadbolt solely on the front door may not be enough to qualify, as intruders can also target backdoors.
For more details, consult directly with your home insurance provider about what they require of qualifying security systems.
ADT offers a full range of security solutions to accommodate whatever you require. Our DIY line, Blue by ADT, comes with the flexibility to choose professional monitoring and integrate with other smart home capabilities.
Our pro-installed alarm systems come with installation certificates you can present to your insurance company. We even have special partnerships with insurance providers like Chubb to further help you save while helping to keep your family safe.
Security Systems Prevent Insurance Claims Which Cause Rates to Increase
Home insurance discounts are not the only way security systems can help you save on your payments.
The more claims you file, the more your insurance premiums increase. These include those related to fire, water damage, and theft. Luckily, security systems can prevent such problems before they start. Examples include:
- Visible security systems and signs may scare off intruders. Burglars look for easy targets, and the addition of an alarm system presents them with a challenge. In fact, only 13% of surveyed thieves said that they would proceed with a break-in if they found an alarm system.
Monitor all doors and windows with sensors, and record the exterior with outdoor cameras and a doorbell camera. As an extra measure, display yard signs and window decals telling wannabe intruders that your house is secure.
Many thieves will choose to skip over your house in favor of one without a security system. This prevents you from having to file claims, ultimately keeping premiums low.
- Fire sensors can notify the authorities, even if you aren’t home. Traditional fire alarms warn anyone present to evacuate immediately and call 9-1-1. But what if you’re not home to hear the siren?
A fire sensor will send instant notifications to your phone about dangerous heat or flames so you can notify the fire department. If you choose to have professional monitoring, a service center representative will send the fire department on your behalf.
By addressing the fire as soon as possible rather than letting it grow unchecked, you can minimize the damage to the home.
- Water sensors help you fix leaks sooner rather than later. While traditional home insurance tends not to address weather-related flooding, many companies cover internal causes of water damage. Examples include burst pipes, leaks, and overflowing plumbing. What is not covered are sources of water damage that are preventable or come from owner neglect.
So how can an alarm system help prevent water damage? Blue by ADT security packages can come with water sensors. Position them in places where flooding is most likely to occur, such as near the water heater, the basement floor, or toilets. When a leak occurs and puddles form, the sensor can detect if the water level exceeds one or two millimeters.
The sensors will send a mobile alert so you can take instant action to fix the water damage rather than letting it worsen. You save yourself from costly clean-up, as well as filing a claim and raising your insurance premiums.
Next Steps to Start Saving on Your Home Insurance
You don’t have to wait for your annual home insurance policy renewal in order to lower your rates. Most companies will offer you an immediate discount once you tell them that you installed an alarm system.
Call up your insurance provider and ask about the requirements your security system must meet to help save you money. Then, find a package that meets the specific guidelines.
To get you started, below is a list of ADT insurance partners:
- Farmers Insurance
- Hippo Insurance
- Branch Insurance
If your home insurance company provides no discount for a security system, it may be time to consider switching. With so many providers eager to reward you for keeping your property safe, there’s no reason to continue paying full prices for insurance.
- Gilbert, Samuel. “Home Insurance Discounts for Security Systems: What to Know Before Buying.” QuoteWizard, LendingTree, 10 Sept. 2019, quotewizard.com/home-insurance/home-security.
- White, Jason Michael. “How Well Do Security Alarms Deter Crime?” Angie’s List , Angie’s List, 1 Dec. 2015, www.angieslist.com/articles/how-well-do-security-alarms-deter-crime.htm.