When preparing a home insurance quote, we ask homeowners several questions. One of these is whether the property includes safety or security features that could help lower the risk of theft, fire, vandalism, or significant damage.
A home security system can help protect your residence, but it can also affect your homeowners insurance premium. The amount of savings will depend on the insurance company, the type of system, whether it is monitored, and which protective devices are installed.
Quick Answer: A home security system may lower your homeowners insurance premium, especially if it is professionally monitored and includes burglary, fire, smoke, or water-damage protection. The discount depends on the insurance company, the type of system, and whether proof of monitoring is available.
Here are the home security and safety features that insurance companies may consider when applying protective-device discounts:
Does a Monitored Burglar Alarm Lower Home Insurance?
A monitored burglar alarm is one of the most important security features to mention when requesting a home insurance quote. This type of system is connected to a monitoring center that can respond when the alarm is triggered.
Some insurance companies give a better discount for monitored systems than for unmonitored systems because there is a faster chance of response if a break-in occurs. A local alarm that only makes noise may still help discourage burglars, but it may not qualify for the same discount.
Does an Unmonitored Alarm System Qualify for a Discount?
An unmonitored alarm system may include door sensors, window sensors, motion detectors, sirens, or smart alerts sent to your phone.
This kind of system can still improve your home’s security, but the insurance discount may be smaller. Some carriers may not offer a discount unless the system is professionally monitored or connected to a central station.
Door and Window Sensors
Door and window sensors help detect unauthorized entry. These are common parts of modern home security systems and may be viewed positively by some insurers.
If your home has sensors on all exterior doors, basement windows, sliding doors, or other accessible entry points, make sure to tell your insurance agent. The more complete the system is, the easier it may be for the insurer to recognize the protection.
Deadbolt Locks
Deadbolt locks are a simple home security feature that may help lower risk. The NAIC recommends checking with your insurance company to see whether discounts are available for deadbolt locks, smoke alarms, fire extinguishers, sprinkler systems, and security systems.
A deadbolt is especially important on exterior doors. If you recently replaced old locks, added reinforced strike plates, or installed smart locks, include that information when requesting a quote.
Smoke Detectors
Smoke detectors are basic safety devices, but they are still important for home insurance. They can help alert residents to fire before the damage becomes more severe.
Many homes already have smoke detectors because they are required by law or local building codes. However, your insurer may still ask whether you have them, how many are installed, and whether they are battery-operated, hardwired, or connected to a monitored alarm system.
Monitored Fire Alarm
A monitored fire alarm may qualify for a better discount than standard smoke detectors. This is because a monitored system can notify a central station or emergency response service even when you are not home.
If your system includes both burglary monitoring and fire monitoring, you should mention both. Some carriers separate the discount for burglar protection from the discount for fire protection.
Fire Extinguishers
Fire extinguishers are another safety feature that may help reduce risk. They are especially useful in kitchens, garages, workshops, laundry rooms, or near fireplaces.
The discount may not be large, but fire extinguishers are inexpensive compared to the damage that a small fire can cause. Make sure they are accessible, charged, and appropriate for the type of fire risk in that area of the home.
Fire Sprinkler System
A residential fire sprinkler system may be one of the stronger fire-protection features. It can help reduce the severity of a fire before firefighters arrive.
Not every home has a sprinkler system, and not every insurer treats it the same way. If your home has one, your insurance agent should know, because it may affect the quote.
Do Security Cameras Lower Homeowners Insurance?
Security cameras may help discourage theft, vandalism, and package theft. Some systems also record video that can help support a claim after a covered loss.
Progressive notes that many insurers offer discounts for video surveillance cameras and home security systems that include alarms, door and window sensors, and motion sensors.
However, a single camera or smart doorbell may not qualify for the same discount as a complete monitored security system.
If you have cameras, tell your agent whether they are indoor, outdoor, doorbell cameras, cloud-recorded, locally recorded, or part of a monitored system.
Motion Sensors and Exterior Lighting
Motion sensors can detect activity inside the home, while exterior motion lights can make it harder for someone to approach the home unnoticed.
These features may not always create a separate discount by themselves, but they can support the overall security profile of the property. They are especially useful near garages, side doors, back doors, alleys, driveways, and detached structures.
Smart Home Water Leak Sensors
Water damage is one of the common concerns for homeowners. Some smart home systems include water leak sensors near water heaters, washing machines, sinks, sump pumps, or basements.
A leak detector may not be considered a traditional “security system,” but some insurers may offer smart-home or protective-device discounts for equipment that reduces water damage risk. Ask your agent whether the carrier gives credit for these devices.
Automatic Water Shut-Off Device
An automatic water shut-off device can detect abnormal water flow and shut off the water supply before the damage becomes worse.
This type of system may be especially helpful for homeowners who travel often, own a second home, or have finished basements. It may also be useful in older homes with aging plumbing.
Security or Safety Feature | May Help Lower Premium? | Proof May Be Needed? |
|---|---|---|
Monitored burglar alarm | Yes | Often |
Unmonitored alarm system | Sometimes | Sometimes |
Door and window sensors | Sometimes | Sometimes |
Deadbolt locks | Sometimes | Rarely |
Smoke detectors | Often | Rarely |
Monitored fire alarm | Yes | Often |
Fire sprinkler system | Yes | Sometimes |
Security cameras | Depends on carrier | Sometimes |
Water leak sensors | Depends on carrier | Sometimes |
Automatic water shut-off device | Depends on carrier | Sometimes |
Do DIY Security Systems Qualify for Home Insurance Discounts?
Some homeowners install their own security systems, while others use a professional company. Both may improve safety, but they may not be treated the same by an insurance carrier.
A professionally installed and monitored system is often easier to document. A DIY system may still qualify, but the insurer may ask for proof of purchase, an active monitoring certificate, or details about the devices installed.
Do You Need Proof of Alarm Monitoring?
If your security system is monitored, the insurer may ask for a certificate or statement from the alarm company.
This document usually confirms that the system is active and monitored for burglary, fire, or both. Without proof, the insurance company may not apply the discount, even if the equipment is installed.
What Usually Does Not Lower Home Insurance Premiums by Itself?
Not every security upgrade automatically lowers your premium. A single camera, a smart doorbell, a basic keypad, or a sign in the yard may not be enough.
Insurance discounts usually depend on the company’s guidelines. Allstate lists deadbolts, burglar alarms, fire extinguishers, smoke detectors, sprinklers, and monitored fire alarms as examples of features that can qualify for homeowners insurance discounts, but also recommends checking with the provider to confirm which discounts apply.
The Discount May Be Helpful, But Not Huge
A home security system can lower your homeowners insurance premium, but it should not be purchased only for the discount. The savings may vary by insurer, state, policy type, and the level of protection.
In many cases, the biggest benefit is not only the insurance discount, but also reducing the chance of theft, fire, water damage, or a larger claim.
The real value is usually a combination of protection, peace of mind, faster response, and possible premium savings.
Ask Before You Buy
Before purchasing a new home security system, ask your insurance agent which features matter most to the carriers quoting your home.
You may want to ask:
Does the system need to be monitored?
Does the monitoring need to include burglary, fire, or both?
Do smart cameras qualify?
Is a certificate required?
Is there a larger discount for sprinkler systems or water shut-off devices?
Can I receive more than one protective-device discount?
Updating an Existing Policy
If you already have homeowners insurance and recently added a security system, contact your agent. The discount is not always added automatically.
Your agent may need to update the policy, submit proof, or requote the coverage. If your current carrier does not offer a meaningful discount, it may be worth comparing options at renewal.
Final Thoughts
Home security systems can help reduce risk and may lower homeowners insurance premiums, especially when the system is monitored and includes burglary, fire, or other protective features.
At StarNet Insurance Group, we can help you review which home safety features matter to insurance carriers and compare quotes from multiple companies. Please feel free to contact us with any questions you may have about homeowners insurance, protective-device discounts, or coverage for your residence.
