Homeowners Insurance & Security Systems


Not only do residential security systems benefit the homeowner in the obvious ways, i.e., providing protection of life and property and peace-of-mind, the fact is, homeowners who install a home security alarm system on a residential property can enjoy not-insignificant discounts on their homeowners insurance policies.

Receiving a discount on homeowners insurance, while simultaneously protecting and securing your property, is clearly a win-win scenario, especially in today’s economic climate. The statistics behind the savings are tangible, and over time, can result in serious savings.

According to a study conducted by the Rutgers University School of Criminal Justice, the average discount for a home equipped with an alarm system is 20 percent. A discount that large is pretty difficult to overlook.

In fact, the discounts can be substantial enough to pay a portion of the monitoring costs or installation of the system,” former president of the Electronic Security Association Dom D’Ascoli told CEPro.com, which is the leading trade publication for professionals involved in the custom electronics business.

A good example can be found here, where the New Jersey Manufacturers Insurance Company lists the specifics of its discounts online. The company, a New Jersey carrier that describes itself as a “safety-oriented carrier” that operates in a “mutual fashion exclusively for policyholders” offers a two percent discount on homeowner’s insurance for installing a local smoke or burglar alarm. And, the discounts increase as the quality of the home security increases.

For example, a smoke or burglar alarm connected to the central station gets the homeowner five percentage points to the discount. All of the discount combinations for various types of burglar alarms, smoke alarms, fire alarms and automatic sprinkler systems are then added together to create a new, larger discount.

Therefore, in the case of New Jersey Manufacturers Insurance Company, if a homeowner were to install smoke or burglar alarms and connect them to a central station, one would receive a 10 percent discount on homeowner insurance.

“Thanks to modern technology, alarm systems are more affordable, versatile and dependable than ever before,” says D’Ascoli told CEPro.com. “The Rutgers study showed that these technical innovations have increased the availability of home security systems to middle class homeowners and helped reduce crime.”

Investing in a home security system that monitors for burglary and fire will both increase the safety of a family and possessions, while saving money on homeowners insurance.

It is truly a simple equation. Insurance companies realize how beneficial a home security system is to a property, and that’s why they offer the discounts. To get the maximum discount, a homeowner would be smart to install a home security system that monitors for burglary and fire.

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