Does Having Home Security Systems Help With Insurance Coverage? 

Home security systems have become increasingly popular in recent years, with many homeowners recognizing the value of protecting their homes and families from potential threats.

But beyond the obvious benefits of security and peace of mind, there’s another advantage that may often be overlooked: the potential for reduced homeowners insurance rates.

The Impact of Home Security Systems on Insurance

Insurance companies calculate premiums based on risk. The higher the risk of a claim being filed, the higher the premium.

When a homeowner installs a security system, it can reduce the risk of burglary, vandalism and even certain types of damage, such as those caused by fire or water leaks. This reduced risk can translate into lower insurance premiums.

Many insurance companies may offer discounts to homeowners who have installed security systems. The amount of the discount varies by company and policy, but can lead to substantial overall savings. The type of security system installed also matters.

For example, basic burglar alarms might earn a smaller discount, while comprehensive systems that include fire and carbon monoxide detection, water leak sensors and professional monitoring services could qualify policyholders for larger price reductions.

Furthermore, having a home security system may even make the difference in being approved for coverage in the first place. Should you or your home be considered particularly risky to insurance carriers, any and every precaution or safety measure could swing a decision in your favor.

Why Insurance Companies Offer Discounts for Home Security Systems

The rationale behind potential discounts is simple: security systems make homes safer. A home equipped with a security system is generally less likely to be burglarized.

Furthermore, modern security systems often include environmental safeguards, such as smoke detectors and water sensors, that can alert homeowners to issues before they become costly claims.

For example, an early warning of a water leak can prevent a small problem from turning into a completely flooded basement and catastrophic losses.

Insurance companies generally benefit when claims are avoided and they can share some of these savings with homeowners in the form of lower premiums. As such, discounts for home security systems can generally lead to a win-win situation: homeowners enjoy increased security and savings, while insurance companies face less risk.

We’re Here to Help

Installing a home security system can indeed affect homeowners insurance, including by reducing rates or helping residents qualify for coverage via reduced risk of various threats.

With this in mind, homeowners who invest in security systems not only protect their homes and families but can also enjoy greater and more cost-effective financial security.

At Golden Gables Insurance Agency, we work with top-rated home insurance carriers and will help you understand various strategies for finding suitable coverage at ideal rates. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.