It is already well established that a home security system deters crime, but many renters and homeowners are not aware that they can also receive valuable discounts on their insurance if they have a system installed. In fact, some insurance companies offer discounts of as much as 20 percent. That often sufficiently offsets the cost of the system making it a very wise investment.
Discounts that make sense.
The Electronic Security Association surveyed the ten largest insurance companies in the United States. All of these companies offered homeowners insurance and most of them offered discounts on homeowners’ insurance premiums for homes with a monitored security system. Some companies offered discounts as much as 20 percent.
The reasoning behind this is that homes with security systems are less likely to be a target for burglars. In short, they are more secure. In fact, a study conducted by Dr. Simon Hakim of Temple University found that a home with a security systems in more than 60 percent less likely to be the target or a break in or burglary. A study by Rutgers University School of Criminal Justice revealed that home security systems do more than deter crime. They can also aid in the reduction of damage that is incurred by fires. Even when no one is home, many alarm systems have the capability to notify the fire department if there is a fire in the home – even when no one is at home.
What are the best systems for the discount?
In short, a home security system that respond to the police or fire department directly will garner the greatest discounts. Systems that include monitored smoke detectors are not only useful, but are also given preference by insurance companies. With this type of system, if you are away but your home is broken into or catches fire, the authorities will be notified by the system. This type of home security system is what the insurance companies are looking for – and what they reward with the largest discounts.
Getting the best discount.
Some insurance companies require the homeowner to install specific security systems in order to receive the discount. You can contact your insurance company to find out what their requirements are. If you are looking for insurance and want to get the best deal it can be quite tedious to call multiple agencies and compare rates and terms. Getting an independent insurance agent may be the most cost effective, least stressful way to find the best deal for homeowners insurance with the best discount on a home security system.
Talk to your insurance agent.
Sitting down and having a conversation with your insurance agent can be one of the best ways to get your discount. Different companies often have different requirements for the documentation you need to provide regarding your home security system as well as any other things you may need to do. Considering that the money you save on your insurance will often more than offset the cost of a monitored system, it is well worth the effort.
If you rent.
According to the National Association of Insurance Commissioners many insurance companies will provide discounts on renters insurance if the residence has safety features like home security systems, smoke detectors, deadbolts on exterior doors, and other safety measures. So, often discounts on home security systems are not confined to solely to homeowners’ policies; renters’ policies can be eligible for discount as well.