Your home’s security can affect more than your peace of mind. It can also affect what you pay for homeowners insurance.
Many insurers offer discounts when you add a security system with professional monitoring, because it can lower the risk of theft or damage. But getting that discount may take more than installing a system.
Your insurer may require specific proof, such as a certificate or monitoring details. Knowing what your insurer looks for can help you claim a discount you may already qualify for.
Insurers Score Security the Same Way They Score Location
Insurance companies look at risk when setting your homeowners insurance rate. They consider factors such as your location, claims history, and the chance of a costly break-in.
Burglary is one of those risks. FBI Uniform Crime Reporting data shows more than 1.2 million burglaries were reported nationwide over the past two years
A security system with professional monitoring can help lower that risk. It can deter break-ins and alert a monitoring center when an intrusion occurs, leading to a faster response.
When the risk of a costly claim goes down, your insurer may offer a lower premium. How much lower depends heavily on the type of system you install.
Professional Monitoring Earns a Bigger Discount Than DIY Alerts
Not every security system qualifies for the same insurance discount. The Insurance Information Institute says homeowners can usually get at least 5% off for features such as smoke detectors, burglar alarms, or dead-bolt locks. Some insurers offer discounts of 15% to 20% for systems that connect to a police, fire, or other monitoring station.
Self-monitored cameras and smart locks can still help protect your home, but insurers reserve their largest discounts for systems that connect to outside monitoring. A monitoring center can verify an alarm and contact emergency services when needed. A phone alert relies on you to see it and respond.
Insurance discounts for security systems typically fall within these ranges:
| System Type | Typical Discount Range |
| Basic devices (smoke detector, burglar alarm, dead-bolt locks) | At least 5% |
| System monitored by an outside service (police, fire, or monitoring station) | 15% to 20% |
Source: Insurance Information Institute
Your Insurer Will Ask for Proof, Not Just an Address
Installing a security system does not automatically trigger an insurance discount. You still need to tell your insurer and provide proof that your system meets its requirements.
Your insurer may ask for a certificate of installation and confirmation that your system includes professional monitoring. Some may also require annual proof that the service is still active.
This is easier when one provider handles both installation and monitoring. SafeStreets, an ADT authorized provider, installs security systems with professional monitoring, so homeowners can get the documentation they need from one provider instead of tracking down records from separate companies.
Before you call your insurer, ask your security provider what paperwork they can provide. Then check with your insurer to confirm what it needs to apply the discount.
The Discount Offsets Part of the Monthly Cost (Not All of It)
A security system with professional monitoring comes with a monthly fee, and your insurance discount may only cover part of that cost.
The savings vary by insurer, state, and home. Your premium can also depend on factors such as your home’s age and local burglary rates. That means the same security system may lead to different savings from one homeowner to another.
When comparing costs and potential savings, it can help to view the decision as part of your overall personal finances.
A Short Checklist Before You Call Your Insurer
A little preparation can make the call easier. Before you contact your insurer:
- Confirm that your system includes 24/7 professional monitoring.
- Ask your security company for proof of installation and monitoring.
- Find out what discount your insurer offers.
- Ask what documents you need to provide.
- Check whether you need to renew the discount each year.
Call your insurer before installation if you can. This gives you a chance to confirm which security features qualify before you spend money.
A security system with professional monitoring can help protect your home and may also lower your insurance premium. But the savings do not happen automatically. You have to ask and provide the right paperwork. A quick call to your insurer can tell you what qualifies, how much you could save, and what steps to take next.
