Do Security Cameras Lower Home Insurance Costs?

Homeowners often look for practical ways to reduce their insurance premiums, and one common question comes up again and again: Do security cameras actually lower home insurance costs? The answer is sometimes, and it depends on your insurance provider and the type of home security system you install. While cameras can deter theft or vandalism, not every setup qualifies for a discount. This guide breaks down what homeowners should know before investing in security cameras for insurance savings, what insurers typically require, and the added benefits that go beyond potential discounts.

How Home Security Affects Insurance Premiums

Insurance companies calculate premiums based on risk. Homes at lower risk for burglary, vandalism, or major loss events often qualify for reduced rates. Security cameras, especially when paired with professional monitoring, can reduce the likelihood of a break-in, which insurers may reward with premium discounts.

However, discount eligibility depends on your insurer, your coverage type, and even local crime rates. While cameras help deter crime, insurance companies typically provide greater savings for systems that actively alert authorities, not just passive recording devices.

Do Security Cameras Alone Qualify for Discounts?

Not always. Many homeowners assume that simply installing a camera — whether wired or Wi-Fi-enabled — automatically lowers premiums. But most insurers only offer discounts for systems that provide active protection, such as monitored alarms.

Standalone cameras offer helpful surveillance, but without monitoring, insurers may view them as offering limited risk reduction. Some companies do offer small discounts for smart doorbell cameras or integrated smart home systems.

Monitored vs. Unmonitored Systems

Monitored Systems:

• Professionally monitored 24/7
• Dispatch emergency services automatically
• More likely to qualify for significant discounts
• Often include alarms, sensors, and cameras

Unmonitored (DIY) Systems:

• Footage stored locally or in the cloud
• Notifications sent only to the homeowner
• May qualify for small incentives, but less common
• Includes popular Wi-Fi cameras like Ring, Google Nest, or Blink

In most cases, insurers prefer monitored systems because they reduce loss, not just record it.

Typical Discount Ranges

While savings vary, homeowners may see:

• 2 to 10% off premiums for monitored systems
• 0 to 5% discounts for cameras integrated with broader security packages
• Little to no discount for standalone, unmonitored cameras

Because each insurer evaluates risk differently, these ranges are general estimates.

What Do Insurers Look For in a Home Security Setup?

Insurance companies usually require that the home security system:

1. Is professionally installed or verified
2. Includes alarms or motion sensors
3. Provides 24/7 monitoring
4. Uses certified equipment (UL-listed components and certified monitoring centers)
5. Integrates with other safety features such as smoke or intrusion sensors

Required Documentation

To qualify for a discount, insurers may ask for:

• An installation receipt
• Proof of monitoring service
• System certification from the provider
• Model numbers or a system description

Without proper documentation, discounts are usually denied.

When to Ask About Discounts

The best times to inquire include:

• When renewing your homeowners insurance
• After installing or upgrading a security system
• When switching insurers or bundling policies
• After adding professional monitoring

Asking early ensures you do not miss potential savings.

What Are Some Other Benefits of Installing Security Cameras?

Even if the insurance discount is small, security cameras provide several valuable benefits:

• Deterrence: Visible cameras discourage intruders.
• Evidence Collection: Footage can support insurance claims and police reports.
• Remote Monitoring: Smart cameras allow homeowners to view live feeds anywhere.
• Smart Home Integration: Cameras can connect with alarms, lighting, and door locks.
• Peace of Mind: Cameras help you feel more secure whether you are home or away.

Know the Limitations and Misconceptions

Do DIY Cameras Count?

Usually not for major discounts. While DIY or Wi-Fi doorbell cameras such as Ring or Arlo are great for monitoring, insurers rarely offer substantial incentives unless the setup includes professional monitoring or a full alarm system.

Can Cameras Raise Privacy Concerns?

Yes. Homeowners should consider:

• Local laws on recording audio or video
• Camera placement to avoid capturing neighbors’ private spaces
• Secure cloud storage and strong passwords to prevent hacking

Always review local regulations before installation.

How to Find Out if Your Insurer Offers a Security Discount

Use these steps to check your eligibility:

1. Review your insurer’s website for security-related discount categories.
2. Call your agent and ask whether cameras or monitored systems qualify.
3. Provide documentation showing installation and monitoring verification.
4. Compare rates among insurers, as discounts vary widely.
5. Reevaluate annually, especially after installing new equipment.

FAQs About Security Cameras and Home Insurance

How much can I save on home insurance with security cameras?

Most homeowners save 2 to 10%, depending on the insurer and whether the system includes monitoring.

Do I need professional monitoring to qualify for a discount?

In most cases, yes. Monitoring ensures faster response, which insurers value.

Will adding cameras reduce my deductible?

No. Security systems affect premiums, not deductibles.

Are smart home cameras covered by insurance if damaged?

Most homeowners policies cover cameras damaged by theft, vandalism, fire, or covered perils. Accidental damage may require additional coverage.

Can renters get discounts for using security cameras?

Yes, but savings are usually smaller. Renters insurance may offer discounts for monitored systems but rarely for standalone cameras.