Updated November 19, 20211 min read
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If your home has safety devices like deadbolts, smart locks, burglar alarms, or a fully monitored security system, you may be able to score a discount of up to 15% on your homeowners insurance premiums. You’re more likely to get a discount on the higher side if you have more than one type of protective device or if your security system includes features like 24/7 professional monitoring.
Homeowners with a security system installed pay on average $100 less on their home insurance premiums than those that don't have one
Deadbolts, standalone burglar alarms, smart home devices, and fully monitored security systems may be able to lower your homeowners insurance rates
If you have a home security discount, it will be noted on your policy declarations page
Based on our research, most insurance companies offer a discount of 2% to 5% on your premiums if you install a home security system, but a few insurers offer up to 15%.
Here’s an example.
Say your insurer offers a 10% discount for having a home security system. That means if your premium is $1,500, you’re saving $150 annually, or about $13 a month.
If your goal is cheaper rates, you’ll want to consider additional options
If your end goal of installing a home security system is to just make your homeowners insurance cheaper, you may want to consider raising your deductible or re-shopping your homeowners insurance policy in addition to adding the security system to your home.
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Both the type and availability of discounts varies by company. Some insurers offer separate policy credits for deadbolts, fire sprinklers, and security systems, while others may include multiple safety or surveillance features under one blanket policy credit.
Here are just a few home safety features that can potentially lower your homeowners insurance rates:
Home monitoring and security systems: For that added level of security and a potentially larger discount on your insurance premiums, a monitored security alarm system is the way to go. Most security system companies will give you the option of 24/7/365 professional monitoring. Some smart home monitoring systems like Ring or ADT also detect fires and water leaks.
Deadbolts: In order to receive a policy credit, you’ll likely need to have deadbolts installed on all exterior doors. If you only have a deadbolt on your front door, that may not be enough to qualify for this discount. Insurers will likely include smart locks with keypads or facial recognition in this discount category as well.
Burglar alarms: Many companies still make standard burglar alarms that are loud enough when sounded to be heard by neighbors, and many insurance companies will give you a slight discount for that extra bit of home security.
Gated community discount: If your home is in a gated community, it’s likely because you’re part of a homeowners association, or HOA. If that’s the case, you may get a discount for the added security of living in an HOA-maintained gated community.
A home security system can make your home a safer place and prevent future theft claims down the road. There are many DIY and professionally installed home security systems widely available. Here are a few:
Ring: With Ring, you'll find a slew of home security products, from alarms and cameras to their popular video doorbells. Ring devices are simple enough to install yourself, or they offer installation services for a nominal fee. A subscription isn't required to use Ring devices but you can add on professional monitoring to have them request police, fire, or medical services, and you can control your whole system and get real-time alerts through the free Ring app.
Simplisafe: This no-contract, install-it-yourself home security system is professionally monitored — with affordable rates to boot.
ADT: A veteran in the home security game, ADT does require you to sign a contract, but it offers several different packages so you can find the best one for your needs. Signing up with ADT comes with professional installation, 24/7 monitoring, and smart home devices.
Vivint: Although this is one of the more expensive home security systems on the market, you won’t have to worry about installing anything yourself. Like the other companies on the list, Vivint offers 24/7 monitoring, a mobile app, smart cameras, and more.
Installing a monitored home security system or centralized fire alarm in your home is great for your peace of mind and can help lower your rates, but it’s not the only way. Here are a few other ways to cut costs on your home insurance policy.
Consider raising your deductible: If you increase your deductible by $500, your premiums could go down significantly. If you have it in your budget to pay the extra deductible amount in the event of a loss, this might be the way to go.
Bundle your home and auto insurance: Are you insuring your home and car through two separate insurers? Some companies offer as much as a 35% discount for bundling your home and auto policies.
Repairs and renovations: This isn’t an immediate way to save, but if you recently made improvements to your home — maybe you replaced old plumbing or installed a new roof — let your insurer know. Your company may lower your rates at policy renewal since your home is less likely to incur damage.
Go paperless: Some insurance companies offer credits to policyholders who opt into paperless billing.
Re-shop your insurance: It’s recommended that you re-shop your homeowners insurance annually so you don’t miss out on a better deal elsewhere. The agents at Policygenius can help you compare home insurance quotes from different companies, purchase a new policy, and cancel your old one.