Protecting your home is a top priority for any homeowner. You invest in strong locks, good lighting, and maybe even a neighborhood watch program. But one of the most effective tools for safeguarding your property is a home security system. Beyond the peace of mind it provides, installing a security system can also offer a welcome financial benefit: a potential discount on your home insurance premium.
Insurance companies base their rates on risk. The more likely you are to file a claim, the higher your premium will be. By installing a security system, you actively reduce the risk of burglary, fire, and other potential disasters. This makes your home a safer bet for insurers, and they often reward that reduced risk with lower rates. This post will explore how that works, what types of systems qualify, and how you can secure your discount.
Why Insurers Reward Home Security
From an insurance provider’s perspective, it’s all about statistics. A home with a monitored security system is significantly less likely to be targeted by burglars. If a break-in does occur, the system can help minimize the loss by alerting authorities immediately. This direct reduction in risk means the insurance company is less likely to have to pay out a large claim for stolen property.
This principle extends beyond theft. Many modern security systems include environmental monitoring for threats like fire, smoke, and water leaks. Early detection of a fire or a burst pipe can prevent catastrophic damage, saving both you and your insurer from massive repair costs. By offering a discount, insurance companies incentivize you to be a proactive, low-risk client, which is a win-win for everyone involved.
Types of Systems That Qualify for Discounts
Not all security systems are created equal in the eyes of an insurer. While any security measure is better than none, certain features are more likely to earn you a significant discount.
Professionally Monitored Systems
This is the gold standard for insurance discounts. A professionally monitored system is connected to a central station 24/7. When an alarm is triggered—whether from a door sensor, motion detector, or smoke alarm—a team of trained professionals is immediately notified. They can verify the emergency and dispatch police, firefighters, or other first responders to your home. This rapid, reliable response is what insurers value most, and it typically yields the highest discounts, often ranging from 5% to 20%.
Local or Unmonitored Alarms
These systems, often called “DIY” alarms, will sound a loud siren if triggered, but do not automatically contact an emergency service. Their primary function is to scare off an intruder and alert you or your neighbors to a problem. While they offer a level of deterrence, insurance companies see them as less effective than monitored systems because they rely on someone nearby to hear the alarm and call for help. You might still receive a small discount, but it will be much lower than what a monitored system would provide.
Systems with Environmental Monitoring
Adding features like smoke detectors, carbon monoxide detectors, and water sensors to your security system can increase your discount. These devices protect against some of the most common and costly home insurance claims. An integrated system that alerts a monitoring center to a fire or flood allows for a much faster response than a standard, battery-operated smoke alarm, potentially saving your home from total loss.
How to Get Your Home Insurance Discount 
Once your security system is installed, getting the discount is usually a straightforward process. Follow these steps to ensure you get the savings you deserve.
Contact Your Insurance Provider
Call your insurance agent or company representative and inform them that you have installed a home security system. Be prepared to provide details about the system, so have your paperwork from the security company handy. They will need to know what features are included and, most importantly, whether it is professionally monitored.
Provide a Certificate of Installation
Most insurers will require proof that your system is active and professionally monitored. Your security company, like Jade Alarm, can provide you with an alarm monitoring certificate. This official document details the type of system you have, the components installed, and confirms that it is connected to a central monitoring station. Simply forward this certificate to your insurance provider.
Ask About Specific Tiers of Discounts
Don’t hesitate to ask your agent if there are additional discounts available. For example, a system that includes fire and water monitoring in addition to intrusion detection might qualify you for a higher discount than one that only covers break-ins. Understanding their discount structure helps you maximize your savings.
Secure Your Home and Your Savings
Installing a home security system is a smart investment in the safety of your family and property. The potential for a discount on your home insurance is a significant financial bonus that makes this decision even easier. By reducing risk, you make your home more secure and less expensive to insure.
If you’re ready to enhance your home’s protection and potentially lower your insurance premiums, the first step is to consult with a security professional. They can help you design a system tailored to your home’s specific needs and provide the official documentation required by your insurance company.