Does adding a home security system lower my insurance by 25%?
If you want to head straight to the punchline, the answer is a resounding no.
Unfortunately, this is what the security companies are selling. I had a customer call me this week and say “I just added my home security system and want the 25% discount”.
To which I replied, “Wow, is that what they told you to get the sale?”
He said “yes”.
So I asked him to have the security company send us an alarm certificate. The alarm was a central station monitored alarm with fire and burglary. That is a very good system and will have a “large” discount.
The premium went from $1,009 per year to $968. It was a 4% discount which is pretty normal especially for a full fire/burglary central station system being monitored by a security company. My client was shocked based on what the salesperson told them, versus the reality.
Please do not fall in the trap of thinking you will get some huge discount on your homeowners policy if you buy a home security system.
Here are a few things to look at when you are considering buying a security system.
- As always, talk to your insurance agent
- Make sure you shop around, and consult your insurance agent before buying a system so you are not tricked into thinking that the system will pay for itself.
- There are a ton of different systems out there and options that will fit your needs. Do not depend on the discount on your homeowners insurance policy when purchasing a security system.
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