Burglar alarm is one of the most effective measures that can be taken to reduce home insurance costs. Customers receive lower premiums when the insurance company provides coverage for the home because the presence of a burglar alarm significantly decreases the chances of a break-in. Thus, there is a lesser risk on the insurance company’s side and they can offer some of the savings to you.

But, how much actually can be saved when an alarm is installed? A specific number is a bit tricky, but generally, discounts range between 5 – 20%. Taking into consideration that the average home insurance premium is around $1,200 annually, that means the savings range from $60 to $240 per year.

We will elaborate on the burglar alarm discounts and reasons that lead to the reduction or elimination of the costs. Click here to discover how home insurance policies can be slashed through the use of a security system.

Why Do Insurance Companies Offer Discounts for Burglar Alarms?

Insurers have always been in the business of risk assessment and management. They determine your premiums by estimating how frequently they might have to claim your home. And this is why if you follow some regulations that minimize the probability of a loss, the insurer will give you lower rates.

A security system, especially one that is professionally installed and monitored, makes a break-in much less likely for several reasons: 

  • Thefts in homes are more likely to be committed by burglars who do not want to have any interaction with the police.
  • Door and window alarms may make loud noises to discourage the burglars from attempting to steal something.
  • Supervised systems call the security or the police once there is an intrusion thus shortening the burglary process.
  • Security cameras assist in deterring criminal activities by increasing the possibility of crime capture and conviction through video footage.

Some studies have indicated that homes without alarm systems are likely to be burglarized at least 3 times. Since alarms reduce break-ins, insurance companies are then able to reduce their risk and in turn, offer policyholders a cheaper premium through underwriting savings.

What Factors Affect Burglar Alarm Rebate?

Some home insurance companies do not consider burglar alarms as eligible for discount and those that do consider it have varying discount rates, which could range from 5% to 20% or more. What, then, can be said to explain that much variation in the savings?

The exact alarm discount you qualify for will depend on several key factors: 

  1. Insurance Company The rules for alarm system discounts vary from one insurer to another. It is for this reason that the amount of the discount can be quite different even from organization to organization in regards to the same type of alarm system. Shopping around is important.
  2. Type of Security System Insurance rebates are normally more significant for paid alarm systems with professional installation and monitoring compared to do-it-yourself systems. Other features such as having surveillance cameras also make the house qualify for better discounts. Other aspects such as smoke detectors and deadbolts also increase savings chances with some insurance companies.
  3. System Monitoring Out of all the systems, the insurers tend to provide the largest discounts for systems that are monitored at a central station and this in turn costs a monthly fee. However, some providers offer much less for systems with only fire monitoring or those that are not monitored at all.
  4. Additional Home Security Measures Although the burglar alarm offers the principal method through which insurance discounts are offered, firms also offer other security features such as security lighting, deadbolt locks, security cameras, and so on. Incorporating the alarm system with other forms of protection may reduce the rates even further.
  5. Location/Claims History Your address and past insurance claims history of your house will determine the basic number that will be charged before the application of any form of discount. Higher burglary rate areas with more claims activity are inherently riskier for underwriting from the start. But percentage savings from an alarm should still be possible there as well.

Getting the Most out of Home Insurance by Reducing Burglar Alarm Costs

If a lower price for homeowners insurance is the aim, one needs to be more careful when choosing not only the insurance company but also the security system so that all the possible discount rates can be received. 

  • Some insurers may offer a discount if a car alarm system is installed in the car, so inquire about this in advance before making a decision. Those companies that offer the highest amount of discounts should be at the top of your list.
  • Choose professional activation and control since many insurers provide greater percentage discounts for these services and equipment than for do-it-yourself systems.
  • When you buy your alarm, consider rebates on other security services such as cameras, smoke detectors, lighting, and deadbolt locks for more rebates.
  • Also, check out any other offers such as the multi-policy or security package that is offered by your insurer when you take an alarm system with your auto insurance.

The best burglar alarm system, or a security system to be precise, could result in a discount of up to 20% or more on your home insurance premiums, depending on the insurance provider you are dealing with. On an average policy, it can go over $200 every year and this is a very basic figure.

Although home security should never be all about saving money on insurance, it is always a plus when one can enjoy lower insurance rates. An alarm is one home improvement that is guaranteed to give a positive return on investment – in terms of security and comfort, as well as financially.

By looking for the best discounts and receiving professional installation and monitoring, you can gain the most insurance savings when installing burglar alarms for your property. In the long run, a good investment in security will prove to have been very cheap compared to the amount of money saved from loss prevention and declining insurance rates.

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