Home security systems obviously provide several advantages related to preventing burglars from entering your home and protecting your family. What many homeowners are unaware of, however, is that they can also receive significant discounts on their homeowner insurance by having a security system installed in their home.
This is especially true if your home is equipped with an all-in-one security system that is professionally installed by a trusted security company. While there are DIY discounts available, most insurance companies will be more likely to provide significant discounts for homeowners that work with professional security companies as they can ensure that the system is working correctly and that they are being correctly monitored.
According to a study completed by the Rutgers University School of Criminal Justice, the largest ten insurance companies in the nation offer discounts of up to 20 percent off your insurance premium if your home is equipped with a monitored alarm system. This is significant because, in some cases, the savings are large enough that you can pay for the monitoring costs or installation fees with it.
So, how much does your insurance company offer as far as discounts if you have a security system in your home?
According to Nationwide’s website, you have the ability to receive a protective device discount of up to 15% if your home has smoke detectors, fire alarms, burglary alarms, or other qualifying devices within it. While the exact amount of the discount will depend on the type of alarm/s that you have in your home, you can clearly receive a significant yearly savings for you and your family.
State Farm is known as one of the better insurance companies when it comes to rewarding their customers for having a security system in their home. Some users have claimed to have received discounts of 20% off their premium for even DIY systems, although they do require those systems to have a monitoring certificate associated with them.
It should be noted that this discount is not typical and will generally depend on the state that you live in. A lot customers have reported ongoing savings of 10% while others have said that State Farm agencies in their state have completely discontinued the discount policy altogether. It should be noted that ADT and State Farm have been known to partner together to provide mutualdiscounts to customers.
Just like Nationwide, All State makes it clear on their website that customers have the opportunity to save up to 15% off their premium if your home has protection against fire and theft. Multiple customers have reported that they are a bit more lenient than most when delivering this discount for even DIY installed security systems.
The Travelers Insurance website outlines the fact that you can receive home insurance discounts by having devices such as smoke detectors, interior sprinkler systems, and home security systems. They do not, however, provide any specific information about how much of a discount you can receive for having these devices in place.
MetLife’s website, as with Travelers Insurance, does say that they provide discounts for security systems. They do, however, make it clear that discounts will vary by state and that some states do not offer any type of security system discounts whatsoever.
Not only does USAA provide discounts to their customers that have security systems installed in their home, but they also have partnerships with ADT and Protection 1 that allow you to receive additional discounts when working with those companies. With ADT and Protection 1 being among the most trusted security companies in the industry, this can be a significant advantage to homeowners.
Liberty Mutual is yet another one of the many insurance companies that advertises that you can receive a discount for having protective devices in your home, although they provide no specifics related to how much of a discount you can receive. It should be noted that the two factors that are most likely to determine the total savings you receive will be your location as well as whether or not your devices are monitored.
American Family Insurance offers discounts between 3 and 20 percent if your home is equipped with a qualifying fire or smoke alarm system, security system, or automatic sprinkler system. Once again the total amount of savings will depend on the area that you live in as well as the type of system that you have installed. Monitored systems are generally required to receive discounts from American Family.
Hartford offers savings of up to 20% off of your home insurance premium if you have a combination of burglar and fire alarms in your home. They also offer minor savings options for homes equipped with dead-bolt locks and smoke detectors. Hartford is actually the insurance provider for AARP members, meaning all members have the opportunity to receive these savings.
The Final Word
It should be noted that each insurance company listed within this article has different stipulations associated with the discounts that you can receive by having a security system in your home. Most of these stipulations will surround the type of alarm system that you have in your home as well as the company that you are working with.
Some insurance companies may also have partnerships with certain security companies that enable you to receive even further discounts by working with a specific company. You can find out much more specific information about the details of your potential discount by contacting your local agent.