Will a Burglar Alarm Lower My Rate?

The average home insurance premium in the U.S. is $800 per year, and premiums are rising quickly in most areas of the country. Now for the good news: installing a burglar alarm in your home can help you save money on home insurance. Most insurance companies will give homeowners a discount of 5%-20% on their premiums for the installation of an approved security system. In this post, we'll discuss security alarms in further detail and explain how and why they can reduce your homeowner's premiums.

About Burglar Alarms

The sophistication and efficacy of burglar alarms varies widely. A burglar alarm can be anything from a $10 unit you purchase at the local hardware store to a high-tech central security system run by a company like ADT.

The least sophisticated burglar alarms simply make noise when an intrusion is detected, typically when a magnetic force field is breached. On the other end of the spectrum, the most effective and modern security systems detect perimeter breaches through a closed-circuit system. In other words, when your doors, windows, etc. are shut, the electric circuit is closed and electricity can run through it. When the doors or windows are opened, the circuit is broken, triggering an alarm. The alarm then alerts the security company's dispatching agency who informs the police of a burglary in progress. Alternatively, some security systems call the police directly with a pre-recorded message detailing the nature and location of the emergency.

How to Save with a Burglar Alarm

Make sure you maximize your home insurance savings when you install a burglar alarm. Follow these simple steps.

1. Contact your insurer to ask about a discount. Before you install a state-of-the-art security system, contact your home insurance company or agent to verify that they do indeed offer a discount for a burglar alarm. If so, ask them how much of a discount you will receive.
2. Find out what systems qualify for the discount. Even if your insurer offers a discount for an alarm, they might require that you purchase a specific type of system. Similarly, they may offer larger discounts for systems with certain features. Find out what kind of security system will save you the most money.
3. Start shopping for a security system. Start comparison shopping for the type of security system for which you will receive the maximum discount. Ask the company how much installation will cost and what the monthly service fee is. Make sure that the systems you are considering have all of the features your insurer specified.
4. Compare premium savings with the cost of the alarm system. If you are purchasing a security system solely for the home insurance discount, you need to compare your savings with the monthly cost of the system for the investment to be worthwhile. On the other hand, if you already want to install a security system and your insurer also happens to offer a discount, you should instead focus on finding the most affordable system that meets your needs and your insurer's qualifications.