Maximizing Your Savings: The Impact of a Home Security System on Home Insurance

A man pointing to a tablet with smart home screen at home.

Having a security system installed in your home can often lead to discounts on your home insurance premiums.

Insurance companies view security systems as a way to reduce the likelihood of theft or damage to your home, which reduces their risk and potential payouts in the event of a claim.

The amount of the discount varies depending on the insurance company and the type of security system installed, so it’s important to check with your insurance provider to see what discounts may be available and what specific types of security systems are eligible for those discounts.

Here are the ways you can maximize your savings by investing in a home security system:

How Much Can You Save With a Security System?

The amount of money you can save on home insurance with a security system will depend on a variety of factors, including the type of security system you install, the insurance company you work with, and the level of coverage you have.

However, on average, homeowners can expect to save between 5% and 20% on their insurance premiums by installing a security system.

How a Security System Can Save You Money on Home Insurance

Installing a home security system can have a significant impact on your home insurance.

Most insurance companies offer discounts to homeowners who have a home security system installed, as it can reduce the risk of theft and other types of damage to the property.

Here are some ways that a home security system can affect your home insurance:

Lower Premiums

Many insurance companies offer discounts of up to 20% on home insurance premiums for homeowners who have a home security system installed.

The discount amount may vary depending on the type of security system you have installed and the level of coverage you have.

Reduced Risk

A home security system can reduce the risk of theft, vandalism, and other types of damage to your property, which can lower your risk profile in the eyes of the insurance company.

Risk is the probability that something will happen that will result in a claim being made against the insurance policy. The higher the risk, the higher the cost of the insurance policy.

By reducing your risk with a security system, you can lower the cost of your home insurance.

Increased Protection

A home security system can help protect your property and assets, which can help reduce damage and insurance claims.

This increased protection can help keep your premiums low and reduce the likelihood of coverage restrictions or exclusions.

Access to Additional Coverage

Some insurance companies may offer additional coverage options for homeowners with a home security system installed, such as coverage for identity theft, which can provide additional protection and peace of mind.

Identity theft coverage can provide reimbursement for expenses related to restoring your identity, such as the cost of credit monitoring services, legal fees, and lost wages.

Different Types of Home Security Systems

Laptop with view from CCTV cameras. Home security system

There are several types of home security systems available on the market, each with its own features and benefits.

Here are some of the most common types of home security systems:

  • Monitored Systems: Monitored security systems are monitored by a professional monitoring company 24/7. When an alarm is triggered, the monitoring company is alerted and will contact the homeowner and/or the authorities if necessary.
  • Wireless Systems: Wireless security systems use wireless technology to connect the various components of the system, such as door and window sensors, motion detectors, and cameras. They can be installed without the need for drilling or wiring and can be controlled remotely using a mobile app.
  • Hardwired Systems: Hardwired security systems are wired into the home’s electrical system and typically require professional installation.
  • Smart Home Systems: Smart home security systems are connected to a smart home platform and can be controlled using a mobile app. They may include features such as home automation, voice control, and integration with other smart home devices.
  • Outdoor Systems: Outdoor security systems are designed to protect the exterior of the home, including the perimeter, doors, and windows. They may include features such as motion detectors, cameras, and lighting.

Which Security System Will Save You the Most Money?

Although installing a home security system can potentially save you money on home insurance premiums, the amount you can save on your insurance will depend on the type of system you choose and the insurance company you work with.

Generally, monitored systems tend to offer the greatest insurance discounts.

Monitored security systems are typically the most effective in preventing burglaries and other security breaches.

As a result, insurance companies may offer greater discounts on premiums for homeowners who install these types of systems.

Depending on your insurance company and policy, you may be able to save up to 20% on your premiums by installing a monitored system.

Wireless systems and smart home systems can also potentially save you money on your insurance premiums, but the amount of the discount may be less than for monitored systems.

Outdoor security systems can also offer discounts on your home insurance premiums.

Other Ways You Can Lower Your Home Insurance

If you’re looking for ways to further reduce your home insurance costs, here are other ways you can lower your home insurance:

  • Increase Your Deductible: One way to lower your home insurance premiums is to increase your deductible, which is the amount you pay out of pocket before your insurance coverage kicks in. By increasing your deductible, you can lower your monthly or annual premiums. Just make sure you have enough money set aside to cover the deductible if you need to make a claim.
  • Bundle Your Insurance: Many insurance companies offer discounts if you bundle multiple types of insurance policies, such as home and auto insurance. Bundling your insurance policies can save you money on each policy.
  • Improve Home Safety: Making improvements to your home safety can also lower your insurance premiums. This could include adding smoke detectors, carbon monoxide detectors, or a sprinkler system. You may also want to consider upgrading your home’s electrical or plumbing systems, as older systems may be at higher risk for damage.
  • Upkeep Your Home: Maintaining your home can help lower insurance costs by reducing the risk of damage or injury. Plus, the fewer claims you have on your home insurance policy, the lower your rates will be.
  • Upgrade Your Home: Upgrading your home can also help lower your insurance costs, as it can reduce the likelihood of damage or accidents that can lead to insurance claims. Some common upgrades include installing a new roof and upgrading your plumbing and electrical systems.
  • Shop Around: It’s always a good idea to shop around and compare insurance policies from different providers. Make sure you’re getting the coverage you need at a price you can afford.

Save Money On Your Home Insurance Today!

There are a great many ways that you can work with your insurer to significantly lower your monthly premiums – one of which is installing a security system.

If you want to find out how much you could save on your policy, get in touch with Capital Insurance today.

Our team of insurance professionals can help you save money on your home insurance costs.