Written by: Guest | Best Company Editorial Team
Last Updated: July 30th, 2020
Guest Post by Ethan Lichtenberg
Homeowners insurance is one of the most important parts of owning a home. It can cost a lot of money if you aren’t doing the right things to ensure you’re getting the best rate.
Many factors determine home insurance rates, from where you live to your credit score. But how do you get these discounts? One of the most significant ways insurers will give discounts on home insurance is by protecting your home. When insurance companies see that your home is equipped with security cameras and a security system, you are in the best position to receive a substantial discount.
Just think about it for a minute. One of the main goals for insurance providers is to avoid claims at all costs. Anytime they have to pay out money, it’s a bad thing in their eyes. If you have something like a security system, which tends to result in less theft and fewer claims, they’re probably going to give you a discount.
Whether it’s security cameras or smoke detectors, having your home protected is an enormous positive in the eyes of insurance companies. Here is why insurance companies love security systems, and how they can save you money on your insurance rates.
Why have a security system?
Many people believe that a home security system may not be necessary, or that it may not be worth the “cost of admission.” I mean, if you live in a good neighborhood, why bother? This is the opposite of the truth. There are many reasons, including the price, to have security cameras and a home security system.
The most obvious reason is safety. Protecting yourself is a no-brainer in the twenty-first century. The world is a scary place where tragic things happen daily. Bad people do terrible things in every corner of the world, even in the nice neighborhoods. Homes are being burglarized and package thieves, mail snoopers, and vandals can all wreak havoc on your property. Security systems can deter that. One of the best ways to keep peace of mind and protect yourself is through a home security system.
Security systems can also give you convenient access to your home as well. Everyone forgets to lock their doors or windows now and then. With the right home security system, if you forget to lock something or set the alarm, you can do it right from your smartphone. In many ways, home security systems can save you money in the long run.
How much do you save?
You may be thinking, “Can I save a worthwhile amount of money on home insurance by buying a security system?” This is a common question that is quickly answered: YES! While some home security systems can get pricey, the money you will be saving on your monthly premium will pay for that security system in no time, sometimes within just a year.
As mentioned before, insurance companies hate claims. The last thing any insurance company wants to do is pay out a massive claim for a burglarized home. To cover themselves, they charge consumers more on their premiums. However, if a company knows you have a home security system, they know the chances for a break in are far less.
Thieves know that when homes have security systems, they have a high chance of getting caught, so they often avoid homes equipped with those handy signs in the front yard. Insurance companies then give you a considerable discount, some reaching 25 percent, because they know that you probably won’t be filing a claim for burglary. Saving 25 percent a month will add up to hundreds of dollars a year, paying for your home security system.
What is the true cost of a break-in?
Burglaries and thefts are extremely expensive, even if you do have home insurance. On average, home security systems cost about $378 per year, which is a low price to pay for peace of mind.
On the other end of the spectrum, on average, one break-in costs about $2,250. That number doesn’t include what your insurance may not cover in the instance of a break-in, not to mention the insecurity and uneasiness your family then has to live with for years to come.
Most insurance companies cover 99.99 percent of break-ins, but they have to make their money back somehow. Similar to the increase you see in your auto insurance when you get in an accident, your home insurance rates also go up when your home is burglarized. Insurance companies have to get their money somehow, and it will be at your family’s expense.
Compared to the true cost of a break-in, a home security system monthly payment seems pretty small in comparison. Home security systems can prevent break-ins altogether. Criminals know the warning sign of alarm systems and security cameras. If you have a home security system, the chances are you will never have to worry about a break-in at all.
Which security systems are the best?
Now that you know why you should have a security system, and the benefits they have on your home insurance rates, how do you know which systems are the best to purchase? This is a tough question that is answered by different factors. What you want to look for as a consumer is what features you get for the price.
Security systems can be incredibly intricate. New features that you probably want to look for include fire alarms, carbon monoxide alarms, 24/7 remote surveillance, and medical assistance. Some high-end security systems can even keep your home more energy-efficient.
Once you know what features seem necessary to you and your lifestyle, see what companies offer the most competitive prices. Here is a list of the best home security system carriers. This list includes average cost and customer reviews from all over the country.
The bottom line
Home security systems have come a long way with today’s technology. From carbon monoxide alarms to medical alerts, the features home security systems possess is staggering. The cost of a break-in compared to the average annual price of a security system is also eye-opening.
Home insurance is vital to have. It could keep your money in your pocket in the long run, and save you a lot of money if a break-in did happen. But a home security system can also give you a significant discount on your monthly insurance premium. So keep yourself protected and save money at the same time.
Ethan Lichtenberg is a writer for insuranceproviders.com. He enjoys Edgar Allan Poe and sneaking off to the beach every chance he gets.