Insurance Discounts for Using Alarm Systems to Protect Your Home
by Erin Raub | Last Updated Mar. 4th, 2016
If you’re like most homeowners, you understood the benefits of an alarm system for months or even years before you installed one. It’s the cost, of course: the cost of installing the system and paying your monthly monitoring fee can really add up. But there’s a but.
A monitored alarm system – in other words, one that is associated with a company that monitors your home’s activity and can notify authorities – can net you a significant discount on your homeowners insurance premiums. It won’t be enough to completely offset the price of your alarm system, but it will certainly defray the cost of home security.
Discounts of up to 20%
In 2011, the Electronic Security Association (ESA) studied the effect of a burglar alarm on your homeowners insurance premiums. According to Dom D’Ascoli, president of the ESA, “A survey of the 10 largest insurance companies offering homeowners coverage found premium discounts up to 20 percent if a home is equipped with a monitored alarm system… The discounts can be substantial enough to pay a portion of the monitoring costs or installation of the system.”
Even better for homeowners, Michael Barry, spokesperson for the Insurance Information Institute, noted that not just a few, but most home insurance companies offer discounts for monitored alarm systems. To determine whether your insurance provider runs with this pack of homeowner-friendly companies, give them a call. Significant savings could await.
Why Give an Insurance Discount for a Burglar Alarm?
It almost sounds like a gimmick – or a racket between the security and home insurance companies, doesn’t it? Except that it’s not. In a Temple University study led by Dr. Simon Hakim, researchers found that a single-family home protected by a burglar alarm is 60% less likely to suffer a home invasion. Later, a study out of Rutgers University reached similar conclusions: anti-theft technology has successfully achieved a reduced crime rate.
The answer is simple then: if you install a monitored home alarm, there is less of a chance that you will be robbed and, therefore, that your insurance company will have to shell out thousands of dollars to cover your losses. Reduced risk for your provider means a reduced premium for you.
The risk-cost benefits of an alarm system don’t stop with crime reduction, either. There’s another reason for that insurance discount: fire safety. Modern alarm systems also help protect against fire damage, one of the costliest claims for insurance companies. In fact, fire and lightening claims account for almost 10 times the number of insurance claims of theft and burglary. So protecting your home from fire damage means even less risk for your insurance company – and the reason for that serious discount on your homeowners insurance.
Call your homeowners insurance company today, and then run those alarm cost numbers again. You may be surprised at how affordable peace of mind – and your family’s safety – can be.
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