Want to lower your homeowners insurance premiums? Get a security system
Finding the best ways to use home security systems with or without the discount
When the average homeowner is shopping around for a homeowners insurance policy, coverage for fire, hail, hurricanes, lightning, tornados and windstorms may come up. Property damage for jewelry, clothes and electronics are also deciding factors into the value of the home (or condo). But how often do homeowners ask for a premium discount after installing home security systems?
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According to Kiplinger, having a home security system is one of eight ways to lower homeowners insurance premiums. Depending on the company’s insurance policies, secure locks (ex. deadbolt locks on the front or back door, or both) matter, but having a secure system on top of those locks can subtract a pretty penny from annual rates.
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Homeowners insurance savings for safety
Quadrant Information Services (via Bankrate) guesstimates the national average home insurance cost is $1,428 per year — about $119 per month — for a policy with $250K in dwelling coverage. And Policy Genius reports that a home security system can knock about 10% to 15% off of the final policy premium.
That doesn’t mean all homeowners insurance companies will accept every alarm system nor does it mean all companies give this type of discount. Zebra lists the following companies that will consider alarm discount eligibility:
American Family Insurance
Farmers
Liberty Mutual
Nationwide
Progressive
State Farm
The Hartford
Travelers
And it’s not just traditional home security systems where the homeowner has to beeline in the door and punch in a wall code before the alarm goes off. Advanced technology and Wi-Fi systems are also considered. Still, not all alarm systems are created equally.
Recommended Read: “Old phone, new home surveillance system ~ AlfredCamera review: Taking advantage of free mobile surveillance apps”