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How installing home security and smart home technology could slash your insurance bill

BY Allconnect | Wed Sep 11, 2019
How installing home security and smart home technology could slash your insurance bill

What are the benefits of home security? First, working with your home security provider is a simple way to gain peace of mind and make your home safer. Second, you can also leverage your home security system to negotiate an insurance discount.

How much does homeowners insurance cost?

According to Value Penguin, the average 2019 yearly cost of homeowners insurance is $1,083, but can range from $48/mo. in Oregon $171/mo. in Florida.

However, adding home alarms or security devices can help reduce your monthly premium. Reports from the Electronic Security Association estimate the insurance discount for an alarm system can be up to 20% off your premium.

Adding or enhancing your home security system could not only help you save on monthly insurance costs but also make your home less vulnerable. It could help you save anywhere from $10-40/mo., as well as help you feel safer.

The cost benefits of home security systems

The homeowners discount for a security system may not be obviously displayed on an insurance company’s website. It often requires you to make a call to ask about options for security savings. But don’t worry, you won’t need to turn your home into Fort Knox in order to qualify.

ConsumerReports estimates that having a home burglar alarm could get you 2-5% off your insurance premium. Having a home security system could save you an additional 2-3% depending on your insurance company and where you live.

According to the Insurance Information Institute, some companies will even give homeowners a small discount up to 5% off your premium for installing a deadbolt lock.

Additionally, homeowners can ramp up their savings by adding to their security system with third-party devices.

The cost benefits of fire detection and prevention

Bankrate reports that smart smoke detectors and fire alarms also help you save on insurance costs. The Insurance Information Institute reported that installing smoke detectors can get you a discount of up to 5%. Some companies offer even more significant discounts if you choose to install a sprinkler system.

A comprehensive fire detection system is helpful for homeowners hoping to get their full home security system discount. Alarms that communicate directly with the fire department are often integrated into these more expensive security systems.

There are a plethora of add-ons homeowners can install to ensure their home gets the largest possible insurance discount. These include sprinkler systems, temperature scanners, fire extinguishers and devices that alert police and fire stations in case of fire. In states with higher fire risks, like those in the West and Southwest, fire prevention upgrades are even more valuable.

Home automation covers your bases

Smart home automation has been touted as the future of home security. High-tech automation systems provide extra security features such as in-home monitoring and live video feeds of home interiors during emergencies.

Homeowners who install devices approved by their insurance company could earn additional home security system insurance discounts. For instance, Realtor.com reports that State Farm provides a 15% premium discount if a homeowner uses certain internet-connected home security systems.

Certain home automation systems also help with fire protection by monitoring the performance of wiring and outlets throughout the home. Some systems are even capable of warning homeowners about excess carbon dioxide.

Putting strategies in place to detect and prevent possible claims before they happen is the best way to reduce insurance costs. Between helping prevent burglaries and accidental disasters from fire, the benefits of home security and smart home technology can help you protect your family, your property and even reduce your insurance costs.

Originally published 11/04/14. Last updated 08/21/19.
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