Having a Home Security System is among the most effective methods of preventing thieves and protecting your house from theft or malicious acts. However, more than being security measures of give people comfort, alarm systems are also effective security systems that can be used to qualify for lower home insurance rates. Keep reading to learn whether getting an alarm for your home can lower your insurance costs.

What Ways Home Alarm Systems Can Help Lower Insurance?

Many insurance providers provide premium reductions for homes with security systems that are monitored by professionals. This is because research has revealed that homes that do not have alarms installed are at least three times more likely to be burglarized. Thus the installation of an alarm shows the insurer that you are serious about safeguarding your home.

Because of this, a home alarm decreases your chances of claiming missing items such as jewelry electronics, or vandalism. And the less often you make claims, the less you contribute to your insurance company’s expenses. These savings are reflected in the form of a lower premium.

Some discounts can be as low as 5 percent or as high as 20 percent, and these savings can add up to hundreds of dollars per year. With an alarm system, you can save money even if you have to pay monthly monitoring fees on top of it.

What Type of System is Prone to Discounts?

For a customer to qualify for a discount, the home security equipment must be professionally installed and monitored at a central station. That means systems that are DIY and self-monitor through an app are excluded. Here are some typical setups that qualify: 

  • Burglar alarms with entry sensors on all exterior doors and windows
  • Glass break sensors
  • Motion detectors
  • Audible alarms
  • Telephone line of cellular or landline for registration signaling central station
  • Monthly monitoring plan

There is often a relation between the depth of the discount and the number of sensors and features that are incorporated into the system. The higher the number of layers of security the lower your rates are likely to drop.

How Much Could You Save?

Discounts offered also differ from one insurance provider to the other and also depending on the area you come from. The process involves several factors including the crime rates of a particular region. For instance, the same system that would help you to cut costs by 15 percent in Detroit, would only be giving you 5 percent savings in a small rural township.

Many insurers limit alarm reductions to below 20 percent. This way, you can only compare and select the best companies that give the highest incentive in your region. An alarm system will prove to be a sound investment because as long as you keep it in good condition and switched on, you will end up paying less money in the succeeding years after it has been installed.

Filing Paperwork For Verification

Once you have installed a qualifying system, you will have to submit documents to your insurance company to begin receiving the discounts. Required paperwork typically includes:

  • A certificate of alarm installation with the signature of the security provider
  • A photocopy of the contract between yourself and the monitoring company for monthly monitoring
  • Model and serial numbers of the equipment; Equipment make or manufacturer

Some carriers may require the renewal of documents with each renewal of policy on your vehicle. If you ever cancel monitoring service, fail to charge batteries or disconnect the alarm system, the insurance company will no longer view your home as protected. This would lead to cancellation of rebates and it is common to find that your premiums will go up when you are renewing your policy.

Why Alarms Are Advantageous To Homeowners?

On top of lowering insurance costs, home alarm systems provide countless other benefits that make them a wise investment: 

Less chances of accidents & greater security

The most important benefit of an alarm system is that it helps protect your family, your personal property, and your home from burglars. Loud audible alarms are effective in scaring away the would-be burglars even before they gain entry into your home. And timely alerting of the authorities boosts the likelihood of apprehending the culprits who do get inside before they can flee.

Home Protection When Away

You are protected all the time by monitored systems even when you are gone on a business trip or a vacation. When any kind of triggered event happens in your absence, the central station always has a standby person who is ever ready to send help on your behalf.

Lower Mortgage Rates

Some of the lenders offer lower interest rates on home loans where alarm equipment has been installed. Banks see security systems as lowering the probability of foreclosure, which is why borrowers receive better funding terms.

Enhanced Home Value

Getting a sophisticated home alarm system increases the property value even more than the cost of installing it and the equipment. Smart consumers are willing to pay higher prices for homes that are protected.

The benefits of insurance and mortgage coupled with enhanced security make home alarm systems a worthy investment for most homeowners. And the opportunity to save several hundred dollars a year in insurance discounts offers practical considerations that are worth their weight in gold. Therefore, do not forget to ask about alarm discounts whenever you renew the comparison of home insurance policy quotes.

Protect your home today with ADT’s top-rated security solutions!

Call now at +1 877-470-7879 to get a free consultation and find out how you can secure your home with the best in the business. Don’t wait—ensure your peace of mind with ADT!