Does Home Insurance Offer Discounts for Having a Security System?

We usually feel safe in our homes. However, if you live in certain parts of Canada with high crime rates, you are potentially at risk of vandalism or burglaries. So, if some items are missing from your house and you suspect a burglary, you can always file a home insurance claim with your insurance company. But after making a claim, you may notice your insurance premium has increased.

So, what is the solution?

The best way to keep thieves away from your house and decrease your premium charges is to install a home security system. You will not only save your valuable possessions, but you will save a lot on home insurance premiums. 

So today’s article will discuss the benefits of having a security system and how you can receive a home insurance discount thanks to your security system.

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Home insurance discount with security system — How do security systems reduce insurance costs?

If you have installed safety devices on your property like smart locks, burglar alarms, security cameras and deadbolts, you can save 15% on your home insurance discount for security system units. You can receive a better discount if you have more than one type of safety device or securities system which works 24/7.

A security system will indeed decrease the cost of home insurance premiums. However, it depends on some factors like:

  • The insurance provider
  • The type of security system you have
  • Your home’s location

You need to know that not all precautions you take to safeguard your property and valuables will lower home insurance premium charges. Your insurance provider will offer a specific discount on home insurance according to your alarm system. Generally speaking, if you have installed a well-monitored and carefully planned smart security system, you will receive a discount on the highest side.

Additionally, most insurance companies in Canada also want your security cameras synced with a central alarm that offers 24/7 professional monitoring. So if there is some kind of emergency, the security company can immediately contact the police authorities, and you can get the required assistance as soon as possible.

Even if you do not have a security system, an alarm system and strong deadbolts are enough to convince your insurance provider to offer some discount on the premium charges.

How much will you save on home insurance with a security system?

According to research, most insurance providers in Canada offer a minimum discount of 2 to 5% on premiums if you have a standard home security system. However, some insurance companies might also offer discounts of up to 15% if you have smart security devices and an advanced security system.

Let us assume that your insurer offers an 8% discount for a standard home security system. So, if your insurance premium is $1000, you will save $80 annually or $7 per month.

Various security measures to lower your insurance rates

The type and the amount of discount varies from one company to another. Most insurance companies offer separate credits for having security systems, deadbolts, fire sprinklers and other safety systems. Here is the list of safety features that can reduce your insurance rates:

1.   Deadbolts

You are supposed to have deadbolts installed on all the main doors to receive a discount. You might not receive the discount if you only have a deadbolt on the entrance door.

Your insurance company will offer a better home insurance discount for security system units if you have smart locks with keypads or biometric scanning.

2.   Home monitoring system

If you want premium security and a high discount on insurance premiums, installing a professionally monitored security alarm system would be a good choice. Most popular security system companies will offer the option to choose from 24 by 7 by 365 professional monitoring.

You can also install a Centrally Monitored Security(CMS) system, which will watch over your property around the clock. You will receive immediate notifications if any door is opened while you are not home, an alarm is triggered, or other serious situations. In addition, having a CMS system on your property will assure your insurer that your house is being looked after even if you are not present.

3.   Gated community offer

If you have a house in a gated community, you are part of a Homeowner’s Association. So you will be eligible for a discount as you live in an HOA-maintained gated community.

4.   Burglar alarms

Most security companies make burglar alarms loud enough to be heard by neighbors. Your insurance company may offer an extra discount for a burglar alarm.

Ways by which a security system can cut home insurance premium costs

Here are five ways how a security system helps to reduce insurance costs:

1.   Get a huge discount on insurance premiums

Your insurance premium can drop by 10% to 15% if you have a standard home security system.

2.   Enhances safety

A standard home security system can help increase home safety. So the decrease in the number of cases shows that the policyholder is careful and is at less risk of any incidents. Therefore you can easily qualify for a home insurance security system discount.

3.   Lowers theft claim quota

Security systems can also help your neighborhood save money by reducing the total theft claim quota.

4.   Lowers the probability of a cost hike

Insurance companies in Canada may suddenly increase the premium charges in a particular area due to the increasing number of thefts. So to avoid higher insurance costs, a home security system is necessary.

5.   Additional safety features

You can install other safety features and devices to lower your home insurance premium charges. For example, you can try installing smoke alarms, burglar alarms, deadbolts, CCTV cameras, ring cameras, flood detectors and smart locks that only open with a pin, fingerprint, or face scanning.

A combination of a top-notch security system will save you a lot of money and reduce the stress of worrying about your and your family’s safety.

Home insurance discount for security system units — Endnote

The best way to learn about the discounts is to contact your insurance company and ask what type of security systems they want on your property. Your insurance provider may also ask for a bill of your security systems purchase and the owner’s manual, after which they can approve a discount.