Most insurance companies offer a discount of 5% to 20% on your homeowners insurance premium for having a monitored home security system. On a typical premium of $1,500 to $2,000 per year, a 10% discount saves you $150 to $200 annually. Over 10 years, that's $1,500 to $2,000 — which may offset the entire cost of the security system.
Insurance companies generally require a professionally monitored alarm system with intrusion detection — meaning door and window sensors that trigger when opened. Fire and smoke detection adds to the discount. Some insurers offer additional discounts for water leak sensors.
Central station monitoring is usually required. Self-monitored systems — where alerts go only to your phone — typically don't qualify for insurance discounts.
First, call your insurance agent before you buy a security system and ask exactly what qualifies and how much the discount is worth. Get this in writing. Second, look for a system that includes fire and water detection in addition to intrusion detection. Third, ask about a certificate of installation — some insurers require documentation from your security provider.
A monitored home security system can pay for itself through insurance savings alone — before you even consider the value of actually preventing a break-in or catching a fire early. Compare both security quotes and insurance impacts to make the smartest decision.