When you’re considering a home security system, the first benefits that come to mind are usually improved safety, peace of mind, and protection of your valuables. But one important factor that often gets overlooked is how installing a security system can help reduce your home insurance premiums. While the exact amount of savings can vary based on factors such as your insurance provider, location, and the specific type of system, homeowners commonly report savings ranging from 5% to as high as 20%.

Why Do Insurers Offer Discounts?

1. Lower Risk of Theft and Vandalism
   A home equipped with a security system is statistically less likely to experience a break-in. From an insurance company’s perspective, this lowers the likelihood of theft-related claims, so they’re often willing to pass some of those savings on to you. 
2. Added Features
   Today’s systems go beyond alarms. Many security packages include 24/7 professional monitoring, smoke and CO₂ detectors, or water leak sensors. These extra measures help to mitigate multiple types of risk (like fire and water damage), increasing the incentive for insurance providers to offer discounts. 
3. Proactive Protection
   Security technology can identify issues before they become major problems. Early detection of a break-in or a fire, for example, not only keeps your family safe but prevents damage from escalating—ultimately reducing the potential payout for the insurance company.

Factors That Influence Savings

• Location
  If you live in an area with high crime rates, insurers tend to value a security system more, resulting in a higher discount. 
• Type of System
  Basic alarm systems might get you modest discounts, whereas more advanced setups—such as monitored security cameras, environmental sensors, and smart home integration—often yield greater savings. 
• Insurer Policies
  Every insurer has different rules. Some may require specific certifications or monitoring services to provide certain discounts. 
• Bundling Opportunities
  If you have multiple policies with one provider (home, auto, life), ask about bundling discounts in addition to the security system discount.

Maximizing Your Discount

1. Compare Quotes
   Get estimates from different insurers. Find out how each one values different security features. 
2. Provide Documentation
   Keep records showing proof of installation and monitoring. Some insurers require this to verify you qualify for a discount. 
3. Ask About Upgrades
   If you’re already planning to install or upgrade your system, find out which features insurers value most. You might be able to tailor your setup for bigger savings.

A home security system does more than offer peace of mind; it can lead to substantial long-term savings on your homeowners insurance. While the average discount may land somewhere between 5% and 15%, some homeowners enjoy savings up to 20% – particularly when adding robust, professionally monitored systems with additional protective features. If you’re interested in lowering your premiums and enhancing your overall home safety, getting a reputable home security system is a smart and potentially cost-effective move.

Below is a continuation of our discussion on home security systems – this time focusing on the different security options available and how they might impact your insurance savings. Whether you’re looking for a simple DIY solution or a fully-integrated, professionally monitored system, understanding your options will help you choose the right level of protection for your home and budget.

1. Wired vs. Wireless Systems

Wired Systems

• How They Work: Wired systems are connected to your home’s electrical wiring and phone lines. Sensors (for doors, windows, and motion) feed data back to a central control panel. 
• Pros:
  • Generally more reliable because they aren’t susceptible to wireless interference.
  • Harder for intruders to disable if cables are concealed properly. 
• Cons:
  • Installation can be invasive—wiring must be installed behind walls or in crawl spaces.
  • Harder to relocate if you move homes.

Wireless Systems

• How They Work: Wireless systems communicate via radio frequencies or Wi-Fi. Sensors are battery-powered and connect to a central hub without the need for extensive cabling. 
• Pros:
  • Easier, faster installation (often DIY-friendly).
  • Simple to expand or move when needed. 
• Cons:
  • Potential for signal interference or spotty Wi-Fi connectivity.
  • Requires regular battery checks and replacements.

Insurance Impact: Both wired and wireless systems can qualify for discounts, but insurers sometimes place higher value on systems with professional monitoring or advanced features (like cameras and environmental sensors).

2. Self-Monitored vs. Professionally Monitored

Self-Monitored

• How It Works: You’ll receive alerts on your phone whenever sensors detect activity, and it’s up to you to decide when to contact authorities. 
• Pros:
  • Lower monthly costs (no monitoring fees).
  • Greater control over alerts and notifications. 
• Cons:
  • If you miss an alert or your phone is off, there’s no backup protection.
  • Insurance discounts may be lower or unavailable with self-monitored setups.

Professionally Monitored

• How It Works: A third-party monitoring center keeps watch around the clock. If a sensor is triggered, they’ll contact you and the authorities if needed. 
• Pros:
  • Constant coverage—even if you’re asleep, away from home, or miss a notification.
  • Typically qualifies for higher insurance discounts. 
• Cons:
  • Ongoing monthly or annual service fees.
  • Must rely on a third-party for response times.

Insurance Impact: Insurers usually provide more substantial discounts for professionally monitored systems because they reduce the risk of major incidents going unnoticed.

3. Security Cameras & Video Doorbells

Indoor/Outdoor Cameras

• Features: Night vision, two-way audio, cloud storage, and motion-triggered alerts.
• Benefits:
  • Visual evidence if a break-in or suspicious activity occurs.
  • Deterrent effect: visible cameras can discourage intruders.

Video Doorbells

• Features: Live viewing, motion sensing, and two-way communication at your doorstep.
• Benefits:
  • Screen visitors before opening your door.
  • Prevent package theft by monitoring deliveries in real-time.

Insurance Impact: While basic camera setups might provide a small discount (or none at all), many insurers see additional value in camera systems that are part of a professionally monitored package.

4. Environmental Sensors

Smoke & CO Detectors

• Why They Matter: Early detection of fire or carbon monoxide not only protects lives but can also reduce property damage.
• Insurance Impact: Insurers appreciate these added layers of protection and may offer discounts, especially when connected to a monitored system.

Water Leak & Freeze Sensors

• Why They Matter: Undetected water leaks or freezing pipes can lead to costly damage.
• Insurance Impact: Some insurers offer incentives for devices that minimize claim risk—like preventing extensive water damage.

5. Smart Home Integration

Smart Hubs & Automation

• How It Works: Systems that integrate with smart home platforms (e.g., Alexa, Google Home, Apple HomeKit) allow for automated routines—like turning lights on/off or locking doors remotely.
• Pros:
  • Enhanced convenience and control from anywhere.
  • Can create the illusion of an occupied home (lights, TV) when you’re on vacation.
• Cons:
  • May require additional smart devices and subscriptions.
  • Potential privacy concerns if not secured properly.

Insurance Impact: Not all insurers account for smart home integration directly in your discount, but any measures that reduce risk (e.g., automatically turning on lights or receiving real-time alerts) can help you catch issues early, potentially reducing claims.

6. DIY vs. Professional Installation

DIY Setup

• Pros:
  • Lower initial costs.
  • You can customize your system at your own pace.
• Cons:
  • Risk of incorrect sensor placement or insufficient coverage.
  • Minimal or no insurance discounts if the system isn’t recognized by certain insurers.

Professional Installation

• Pros:
  • Experts ensure proper placement and setup.
  • Systems often come with service guarantees or warranties.
• Cons:
  • Higher initial costs and possible installation fees.
  • Scheduling and coordinating with technicians.

Insurance Impact: Professional installation combined with professional monitoring often yields the highest discount potential.

Choosing the Best Option for You

1. Evaluate Your Home’s Needs
   • A small apartment might only need basic door/window sensors and a video doorbell.
   • Larger homes with multiple entry points may benefit from professional monitoring, cameras, and environmental sensors.
2. Balance Cost and Coverage
   • Price out the total cost of equipment, monthly fees, and potential insurance discounts.
   • Sometimes investing in a more comprehensive system can pay off in insurance savings down the road.
3. Check Insurer Requirements
   • Some providers require certification (e.g., UL-certified equipment) or specific monitoring plans.
   • Make sure your chosen system meets those criteria to maximize your discount.

From simple DIY door and window sensors to fully integrated smart home systems with professional monitoring, the breadth of home security options is vast. While any form of security can potentially qualify for an insurance discount, systems with professional monitoring and additional protective features tend to offer the most significant savings—and, perhaps more importantly, the highest level of peace of mind.

Ready to save on insurance and boost your home’s protection? Talk to your insurance provider to find out which security measures qualify for discounts, compare system features, and choose the setup that fits your lifestyle and budget. Your wallet, your family, and your peace of mind will thank you!

Here are some of the most popular home security products and services:

Home Security Systems

SimpliSafe 8-Piece Wireless Home Security System

• • Easy DIY setup
  • Optional 24/7 professional monitoring
  • Known for user-friendly equipment and customer service

Ring Alarm 8-Piece Kit

• • Integrates seamlessly with Ring doorbells and cameras
  • Optional Assisted Monitoring or professional monitoring
  • Alexa-compatible

Arlo Essential Spotlight Camera

• • 1080p video, color night vision, and built-in spotlight
  • Wire-free, easy to install
  • Optional Arlo Smart subscription for additional features

Google Nest Cam (Indoor, Wired)

• • High-quality video with night vision
  • Integrates with Google Assistant and other Nest products
  • Intelligent alerts for motion, people, and familiar faces with Nest Aware subscription

Smart Home Security Add-Ons

Ring Video Doorbell (Wired or Battery-Powered)

• • Instant alerts, two-way talk, HD video recording
  • Integrates with other Ring and Alexa devices
  • Great for preventing package theft

Ecobee SmartSensor for Doors and Windows

• • Works with Ecobee thermostats for advanced home monitoring
  • Multi-purpose: can trigger thermostat adjustments based on room occupancy
  • Easy peel-and-stick install

Govee Water Leak Detection Sensor

• • Real-Time Alerts & Smart Connectivity
  • Loud, Adjustable Alarm
  • Easy Installation & Versatile Placement

Insurance Options & Resources

When it comes to insurance, many companies offer online quote tools, Below are a few well-known options:

1. Policygenius
   • Online platform allowing users to compare multiple home insurance policies at once.
     
2. Lemonade
   • Known for its fast, tech-driven approach to homeowners and renters insurance.
     
3. Progressive
   • Offers bundling options (auto + home) and has robust online quoting tools.
     
4. State Farm
   • One of the largest insurers in the U.S., with numerous agent offices and flexible policy options.
     
5. Allstate
   • Offers a wide range of coverage add-ons, easy claim filing, and bundling discounts.