Feeling more secure in your home is a popular (and perfectly good) reason to install a home security system. But in case you need another one, how about trying this one on for size? Purchasing a home security system could potentially save you money on home insurance.
The calculations insurers use to decide how much to charge you for a homeowner’s insurance policy are complicated, but it tends to come down to risk. They divide losses in a certain group of insured homeowners by “exposure” or “risk” to come up with a number that makes sense to them. It all comes down to this: The more you can do to prove you have fewer reasons to file a homeowner’s insurance claim that will cost the insurance company money down the road, the better.
So what does this all have to do with a home security system? A lot, as it turns out. Putting in a home security system can reduce the chances that you’re going to file a loss with your home insurance company, which can equal a lower premium for you. Here’s why:
Home security systems reduce your risk of burglary
When burglars are eyeing up a neighborhood, statistics from the National Council for Home Safety and Security show they tend to head straight to homes without a home security system, and the U.S. Department of Justice’s Office of Victims of Crime estimates one home is burglarized every 18 seconds.
The good news? As much as 60% of home invaders say they’ll turn the other way if they spot a home security system. Essentially, home security system should mean less risk of a home break-in.
How a home security system can save you money on insurance
Yes, the system can make the burglars turn tail and run away, but what about your insurance company? The savings can be realized from the get go — and even if you do fall prey to a break-in.
- Payment discounts: Depending on your insurance company and the type of home security system you install, you could be looking at savings anywhere from 5% for a burglar alarm or dead-bolt locks to as much as 15 to 20% of a homeowner’s policy premium for a more sophisticated alarm that’s hooked to a monitoring system.
- Claim proof: No one wants to have a break in, but on the off chance that it does happen, a home security system can help you in your home insurance claims process and help you recoup some of your losses. Cameras, for example, can help you prove that any damages to your structure were truly caused during the break-in (and thus should be reimbursed), as well as providing proof of what was in your home pre-break-in.
- Reduce claim hikes: We already mentioned that home insurance rates are complicated. Part of that? The way home insurers fiddle with the rates after someone files a claim. Having a home security system can ward off a break in which, in turn, can prevent you from having to file a claim and risking a rate increase.
Contact your home insurance company to see how much you can save
If you haven’t already installed a system, now’s the time to make a call to find out just what you can add to cut your rates. Different additions can result in different savings, so ask your insurance agent for quotes based on types of equipment such as cameras or alarms. Be sure to ask if you’ll save more if you pay a company for round-the-clock monitoring.
Already have a few home security perks around the house? That’s worth a call to your home insurance agent. They may send a representative to your home to verify what you have installed and they can recommend other home security accessories that will save you money on your premium.
This article has been reviewed and approved by Officer Banta.
Officer Banta is the official SecurityNerd home security and safety expert. A member of the Biloxi Police Department for over 24 years, Officer Banta reviews all articles before lending his stamp of approval. Click here for more information on Officer Banta and the rest of our team.