When shopping for home security, you'll quickly come across certain types of warranties listed in the product description or subscription benefits. The idea is that home security gadgets can lower your homeowner's insurance (which covers fire, theft, and similar events). Check with insurance companies like Progressive, State Farm, and Allstate and you'll find that to be true. Home security technology can reduce your insurance premiums by 5% to 15% or more.
Homeowners insurance in 2024 can cost over $100 per month (or much more, depending on the state you live in), so these discounts could save you $10 to $20 per month. there is. This cannot be ignored, especially since the cost of a security system can be recovered in a few years.
But there are plenty of home security gadgets out there. What actually lowers your homeowner's insurance, and by how much? Let's take a look at some popular purchases to see if you qualify and how much you can save.
Is it a single device like a video doorbell or security camera?
Answer: Probably (2% to 5% discount)
Having one security camera can potentially give you a small discount on your insurance premium.
Amazon
Having one security camera or video doorbell on your property will usually reduce your homeowner's insurance premium by a few percent. Insurance companies want to see cameras not only as a preventative measure, but also as a way to collect evidence and make their job much easier in the event of a crime or property damage. These cameras often do not require a subscription and do not include monitoring services, so they can be considered a one-time purchase. Check out our picks for outdoor security cameras to see some popular options.
Your insurance company may have rules regarding what features the camera should have, such as motion detection (very common), self-monitoring alerts (always included via the app), or high resolution on the camera. Some cameras may only be counted if they are connected to a larger home security system. Check out the details for more information.
Note: Discount amounts vary depending on the insurance company. Some places offer very little discount. Flat rebates may also be available, such as $20 to $40 off the annual issue price. However, we use percentages because they are common and are a useful way to assess potential savings. Before purchasing any home security technology, be sure to contact your insurance agent to inquire about specific discounts.
Smart lock?
Answer: Yes (2% to 5% discount)
A properly performing smart lock can help you save money.
Rock Lee
Smart locks make it easy to manage access and solve problems like forgetting to lock your front door. Rather than handing out valuable physical house keys, you can also create temporary passes for people. Look out for discounts on homeowners insurance, including smart deadbolts with keypads and smart locks on all exterior doors of your home.
A complete home security system?
Answer: Probably (5% to 15% discount)
Abode's starter kit is very affordable and works with many third-party products.
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Complete home systems include door and contact sensors to help detect intrusions. These systems are completely DIY, with inexpensive versions costing just a few hundred dollars to start. Additionally, in most cases you can add sensors, cams, and other devices in the future. In particular, Abode and Vivint are great at supporting third-party devices from other brands.
Home security systems have more coverage, so you're more likely to qualify for insurance discounts, and it's easier to increase your discount by adding more devices. Contact sensors, glass break sensors, actuating or disabling panels, and one or two security cameras are a powerful combination that many insurance companies offer benefits. Additional savings may be possible by adding a compatible temperature monitoring system or leak detector.
Again, requirements such as having certain types of sensors, having sensors on all access points in your home, and other minor insurance company requirements. Please note.
Professional home monitoring service?
Answer: Almost certainly (up to 20% off)
You are most likely to receive a discount when you use home security monitoring.
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It costs about $20 to $30 a month, or less, to have your home professionally monitored. You can also connect your system to a monitoring center to monitor trouble and contact first responders even when you're not there. You may also be able to use audio and sirens to scare away robbers. SimpliSafe's advanced system recognizes strangers and friends alike to improve responsiveness.
Surveillance is a great way to reduce damage from break-ins and fires, so you're very likely to receive a discount from your insurance company.
Note: Insurance companies may offer different rebates depending on the type of monitoring. For burglary monitoring he may receive one discount, and for professional fire alarm monitoring he may receive another discount. Most professional monitoring services offer packages that combine both.
Is it an environmental sensor like a leak detector or smart smoke detector?
Answer: Yes (2% to 5% discount)
Kangaroo includes a climate sensor (aka leak detector) in its expanded 8-piece home monitoring kit.
kangaroo
Leak detectors can help alert homeowners to leaks in the bathroom or under the sink. Smart smoke detectors, on the other hand, offer better monitoring options and thankfully silent battery updates. However, none of these alone qualify for insurance discounts.
In fact, you're more likely to qualify for savings if these sensors are part of a larger home security system or connected to a professional monitoring service. Insurance companies especially like to include leak detectors in security systems and may offer additional savings if you add a leak detector. Many platforms offer support for things like leak sensors, but for a specific compact and affordable option, check out Arlo's 8-in-1 sensor approach.
Note: For certain devices, such as leak detectors, your insurance company may have a specific brand required.
Will I need a home security system for homeowners insurance?
Although not universal, certain insurance packages and additional fees may require certain home security devices or professional home monitoring. These requirements may also vary depending on location and the value of nearby homes. If you're moving to a new home, carefully check your homeowner's insurance policy to see if there are any home security obligations.
What if my bank pays my homeowners insurance?
In some cases, people pay their homeowner's insurance into an escrow account managed by a lender, and the lender selects and pays the homeowner's insurance and other fees. This is likely to be a requirement for your mortgage for at least your first year or so.
In these situations, your insurance company may not offer a similar discount, or you may not save much depending on your mortgage. However, if you prefer, you can contact your lending bank to discuss remitting your insurance escrow payments or handling your insurance directly.
To save even more money, consider combining insurance or looking for a particularly inexpensive home security camera. You can also save a lot of money with professional home monitoring.