How to Get an Insurance Discount for Your Security System
Home security systems aren't just about deterring break-ins and keeping your family safe; they can also be a smart financial investment. Many insurance companies offer significant discounts on your home insurance premiums if your property boasts a qualified security system. Let us explore the various aspects of insurance discounts for home security systems.
What are Security System Discounts?
Insurance discounts for homes with security systems are based on the reduced risk these systems provide. By deterring potential break-ins, fires, and even water damage (through leak detection features), security systems decrease the likelihood of costly insurance claims. To encourage homeowners to install these systems, insurance companies offer discounts on premiums.
Why Do Insurance Companies Offer Discounts for Homes with Alarm Systems?
Insurance companies base their premiums on the level of risk associated with insuring a property. Homes equipped with monitored alarm systems are generally viewed as less risky for several reasons:
Reduced Break-In Rates: Studies consistently demonstrate that homes with visible security systems are significantly less likely to be targeted by burglars. This translates to fewer break-in claims and lower overall costs for insurance companies.
Fire and Water Damage Protection: Many modern security systems go beyond burglary protection, incorporating features like fire alarms, smoke detectors, and even water leak sensors. These features can help prevent major catastrophes and minimize the extent of damage, further reducing the likelihood of costly claims.
Faster Emergency Response: In the event of an emergency, security systems can often trigger immediate alerts, notifying homeowners and emergency responders simultaneously. This quicker response time can potentially minimize damage and expedite the claims process.
Recognizing these benefits, insurance companies incentivize homeowners to invest in security systems by offering discounts on their insurance premiums.
What are the Types of Alarm Systems and Qualification?
Not all security systems are created equal when it comes to insurance discounts. Here's a breakdown of the types typically considered:
Monitored Alarm Systems: These systems connect to a central monitoring station, providing 24/7 professional response in case of a break-in, fire, or other emergencies. This is the most common type to qualify for discounts, offering a range of 5% to 20% on your insurance premiums.
Unmonitored Alarm Systems: These systems trigger an alarm locally when triggered but do not connect to a central monitoring station. While less common, some insurers might offer smaller discounts (2-5%) for these systems.
Home Automation Systems with Security Features: These systems integrate various smart home devices like smart locks, motion sensors, and cameras, offering a comprehensive security solution. While not always explicitly mentioned in discount programs, some insurers might consider these features positively when determining your overall premium.
It's crucial to remember that these are general guidelines, and the specific requirements and discount percentages vary by insurance company. Always consult directly with your provider for the most accurate information.
How to Secure a System Discount?
Contact Your Insurance Provider: Initiate a conversation with your insurance company to inquire about available security system discounts and specific requirements for qualification.
Explore Different Security System Providers: Research reputable security system providers in your area, comparing features, pricing, and compatibility with your insurance company's requirements.
Invest in a Qualified System: Opt for a system that meets your security needs and adheres to your insurance company's criteria to maximize potential discounts.
Provide Proof of Installation: Once your system is installed, obtain a certificate of completion or any necessary documentation from the security company to submit to your insurance provider for verification and discount application.
How much can a homeowner potentially save by having alarm systems?
The potential savings you can achieve by installing an alarm system depend on several factors, including:
Your insurance company: Different companies offer varying discount percentages.
The type of alarm system: Monitored systems typically qualify for higher discounts than unmonitored ones.
The features of the system: Advanced systems with features like fire alarms, smoke detectors, or two-way communication might offer additional savings.
Your location: Crime rates in your area can influence the discount offered.
According to The Insurance Information Institute (iii) https://www.iii.org/ Typically , discounts range from 2% to 15%, with some companies offering up to 20% for highly sophisticated, monitored systems.
For example, consider a homeowner with a $2,500 annual insurance premium and an insurer offering a 12% discount for a monitored system. They could save $300 per year (12% of $2,500) on their insurance, making the investment in the system potentially worthwhile even after factoring in the monitoring fees.
However, it's important to carefully weigh the cost of the entire system, including installation, monitoring fees, and maintenance, against the potential savings on insurance premiums.
How do you balance features, discounts, and budget when choosing the right system?
While focusing solely on maximizing the discount is tempting, prioritizing your security needs is essential. Consider the following when choosing a system:
Your home's layout and size: Choose a system that adequately covers all crucial areas of your property.
Your lifestyle: Consider features like smart home integration, remote access, and mobile app control for added convenience.
Your budget: Weigh the upfront costs of equipment, installation, and monitoring against the potential long-term savings on insurance premiums.
Beyond traditional alarm systems, smart home automation systems are increasingly recognized by insurance companies. These systems offer various features like smart locks, motion sensors, and video surveillance, potentially contributing to security and offering potential insurance discounts.
While not all smart home devices qualify, some insurance companies offer discounts of up to 10% for approved devices and systems. However, it's crucial to understand this landscape is still evolving, and the specific offerings vary significantly between companies.
What are some key points to remember?
Contact your specific insurance company: Every company has its own policies and discount structure regarding smart home systems. Don't hesitate to reach out and inquire about their current offerings and eligibility requirements.
Understand the specific qualifying features: Not all smart home devices will qualify for discounts. Ask your insurer for a list of approved devices or features that contribute to potential savings.
Discounts might not apply to the entire home insurance premiums: Some companies might offer discounts only on specific coverage aspects like burglary coverage, not the entire premium.
What are some examples of how different companies approach smart home discounts?
Allstate: Offers up to a 5% discount for a camera system, which requires professional installation and monitoring.
Amica: Discounts vary depending on the specific device and location. They offer discounts for approved smart home devices such as smart locks and leak detectors, potentially reaching up to 10%.
Geico: Limited information is available; it is recommended to contact Geico directly for details.
State Farm: Offers up to a 10% discount for a home security systems, which require professional installation and monitoring.
The Hartford: Offers up to a 5% discount for qualifying smart home devices, with discounts varying by device and location.
Liberty Mutual: Offers discounts for certain smart home devices such as security systems, thermostats, and smoke detectors. Discounts may vary depending on the device and location
Several websites and comparison tools can help you compare quotes and find companies offering specific discounts. like National Association of Insurance Commissioners (NAIC) - This non-profit organization provides consumer resources and information about insurance, including tips on finding and comparing home insurance. You can find their website at https://content.naic.org/
Remember, before making any changes to your insurance, thorough research is crucial. Compare policies from various home insurance companies in your area. Don't just focus on the cost; understand insurance policy details, including coverage options, deductibles, and available discounts, particularly those related to home security systems. Talk to their existing Policyholders and request for homeowners insurance quote. By comparing offerings, you can potentially maximize savings while ensuring you choose an insurance policy that best fits your needs and provides comprehensive home insurance and peace of mind. Remember, prioritizing home security is an investment you won't regret, and comparing different home insurance options can help you find the best value for your money.
Kangaroo Home Security - Your Smart Home System
Kangaroo partners with Dory https://www.meetdory.com, a Discount Engine, to help you save money on new and existing insurance policies. Dory scours hundreds of discounts to find those you qualify for and assists you in requesting them, potentially lowering your overall security costs.
Kangaroo offers a range of self-monitored and professionally monitored security systems with features like:
Motion Detection and Door/Window Sensors: Our advanced motion detection and door/window sensors provide essential protection against unauthorized access and potential threats, ensuring your home is always secure whether you're at work or away on vacation.
HD Cameras: Our high-definition security cameras offer unparalleled visual verification, allowing you to monitor your home remotely and respond swiftly to any alerts or suspicious activities. With crystal-clear footage and seamless integration with our mobile app, you'll have complete control over your home security at your fingertips.
Water and Climate Sensors: Protect your home from potential hazards with our water and climate sensors. Designed to detect water leaks, extreme changes in temperature, and humidity levels, our sensors ensure early detection and prompt action to prevent damage to your property. Receive instant alerts directly to your smartphone, so you can address any issues before they escalate.
Photo Doorbell and Video Doorbell: Enhance your home security with either the Kangaroo Photo Doorbell or the Video Doorbell. Both options offer convenient monitoring solutions to deter potential theft, notifying you of motion detection, doorbell rings, or both, eliminating the need to squint through a peephole. Each doorbell includes a plug-in Chime, providing audible alerts and extending the Doorbell's battery life. Choose the Photo Doorbell for cost-effective still images upon activity, or opt for the Video Doorbell to see and hear visitors clearly in 1080p HD video, even in low-light conditions. Ultimately, the best choice depends on your budget and recording preferences, but either option provides increased home safety, peace of mind, and burglar alarms.
These options provide comprehensive security solutions tailored to your needs and budget.
How Dory’s Concierge Service with Kangaroo Delivers Insurance Discounts
Here’s what people are saying about how simple, fast, and rewarding the service is.
"Kangaroo concierge service is great. Just saved me $65 on my insurance. They did all the work and I'm very pleased to get this discount." - Alice
"I didn’t even know this was possible until I contacted kangaroo and I was offered! They contacted my insurance company and was able to save me 10% overall." - Spree
"Kangaroo saved me $39 on my annual premium!" - Nadia C.
"Wow! I just answered a few questions and now I’m saving an additional $64!
Simple, Fast & easy!" - Jeff G.
By understanding the discount landscape, choosing an appropriate system, and communicating with your insurance provider, you can leverage home security systems to enhance your security and potentially save money on your insurance premiums.
