Does An Alarm System Cut Home Insurance Costs?

Does An Alarm System Cut Home Insurance Costs?

Does An Alarm System Cut Home Insurance Costs?
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Installing an alarm system in your home is a great way to ensure peace of mind. Homes without security are much more likely to be broken into, but besides that fact, you may also benefit by receiving a reduced rate on your homeowner’s insurance if you install an eligible alarm system. However, there are a few different types of alarm systems available on the market and so which one should you choose?        

In this article, we will answer those questions and give you some tips on how you can secure the largest discount on your homeowner’s insurance. 

Does Home Security Lower Home Insurance?

Yes, installing an eligible alarm system/home security system will, in most cases, allow you to receive a discount on your homeowners’ insurance policy. That said, not all home security systems are created and equally, and some alarm systems will make you eligible for a bigger discount than others. 

How Much Can I Save on Home Insurance with a Security System?

For the most part, just by installing an alarm system of any kind in your home, you will be eligible to receive a discount of up to 5% on your homeowner’s insurance. Other systems, such as those that are installed professionally and monitored by a home security agency, may entitle you to receive a discount of between 15 % – 20%, but that will depend on which company you are with for your homeowner’s insurance and whether or not they take into account the advanced features included with such systems when determining your discount. 

Is the Cost Worth the Deduction?

In most cases, the cost of having an alarm system installed in your home will be worth it in the long run. If you are only receiving a 5% discount, then it may take a few years before you break even on the cost of having the system installed. However, if you are with an insurance provider that offers a 15% or 20% discount, then you might be able to recuperate your investment in only a few months. 

Is a Home Security System Tax Deductible?

In some jurisdictions, you can write off the cost of purchasing a home security system, whereas, in other regions, the expense is unfortunately not tax-deductible. In almost all cases, the monthly subscription fee you pay for home monitoring by a professional security company will not be eligible for a tax write-off. 

However, if you work from home, and have a home office, then your home monitoring may be eligible for a tax reduction as a business expense. Be sure to check with an accountant who knows the tax code in your local jurisdiction to confirm whether you can write off your home security system installation or your home monitoring service subscription fees. 

How does homeowners’ insurance define home security?

Most insurance companies will consider a few different factors when determining how much of a discount you’ll be eligible for after installing an alarm system in your home. Generally speaking, to get the largest possible discount, your home security system will need to meet some criteria. It will need to have deadbolt locks, a burglar alarm, a disaster sensor, a fire alarm, and some form of home monitoring service included with the system. 

Some insurers will offer a discount if your alarm system has any of the above-mentioned components, while other insurers will require that all of the criteria are met in order to receive the largest possible discount. Still, there are some insurance companies that will only ever give you the minimum discount for installing a home security system, which is around 2%. 

Of course, there is a huge difference between 2% and 20%, and as such, it pays to shop around for a homeowners insurance policy that will provide you with the largest discount before installing a home security system. 

Types of Security Systems

There are several different types of security systems available, and which one you should choose depends on a number of factors, including your budget, which features you need, and whether or not you are comfortable with strangers looking in on your home. That said, all security systems will fall into one of two categories: those that you install and monitor yourself and those that are installed and monitored by a professional home security agency. 

Home Security Professionals vs DIY Security

Having your alarm system installed by a home security company comes with a number of advantages. First and foremost, you won’t need to install the system yourself, which can be a huge relief if you aren’t very handy with installing things. Also, you’ll know that the system is installed and working correctly. The downside to having the system installed by a professional is that you’ll need to book time off work so that you can be home for the installation, and in most cases, there will also be a fee associated with having your system installed, sometimes a steep one. 

The other option is to purchase and install your home security system yourself. Of course, this means that you will need to know how to install the system. Most alarm systems will come with instructions on how to install them, but it can still be a time-consuming and sometimes frustrating process. The upside to installing your system yourself is that you can do it in your spare time and won’t need to book time away from work. You’ll also be saving money by not having to pay for the installation.  

Self-monitored vs agency-monitored systems

If you decide to go with a DIY self-monitored system, then rest assured that many smart home security solutions exist these days, which are easy to use and offer a number of advanced features that used to be reserved for professionally installed and managed systems. Indeed, self-monitored systems are now better than ever before. 

Most self-monitored home security systems now feature an app that allows you to check in on your home, monitor who’s coming and going, and even issue voice commands throughout the home. Almost all DIY self-monitored systems will send a notification to your phone in the event of an emergency. Of course, one of the biggest benefits is that you’ll have more privacy because you won’t have strangers looking in on your home. 

However, some big benefits come with having your home monitored by a professional security company. First and foremost, you’ll have peace of mind knowing that your home is being monitored 24/7, which means you won’t need to worry about checking up on things when you go out of town or are otherwise away from your residence. 

Also, a professional home monitoring service will be able to notify the authorities in the event of an emergency much quicker than you would be able to do so yourself, as you would need to sign in to the app, see what’s going on and then contact the appropriate first responders; a professional service can do all of that for you. 

Where Can I Find a Home Security System?

There are many different options available on the market, and you can find a great solution regardless of whether you opt for a DIY self-monitored system or a professionally installed and third-party monitored home security solution.  

If you decide to go the DIY route, then you can find some excellent options online. Some of the best and most trusted self-installed home alarm systems include Abode Iota all-in-one, Ring Alarm Pro, the Simple Safe Home Security System, Wyze Home Monitoring, and Blue by ADT. Each of these systems is much more cost-effective than a professionally installed alarm system will be, and for the most part, they all feature advanced features and handy, easy-to-use apps. 

Alternatively, if you elect to proceed with having an alarm system installed by a home security company, then some of the most trusted providers in Canada include Vivint, Frontpoint, Think Protection, and ADT. Each of these companies offers a range of different solutions depending on your budget and how much protection you want, so be sure to contact each of them to determine which option will work best for you. 

Summary

Installing a security system in your home is a smart decision, and it’s one that can pay off in the long run. Most homeowners’ insurance providers will provide you with a discount for installing an eligible alarm system in your home, and sometimes the difference can be as high as 20%, which is significant. 

There are a few different types of home alarm systems available on the market, and which one you should choose depends on a number of factors, including your budget, whether you’ll be installing the system yourself or having a professional install it, and of course, what features your need. 

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