If there’s one thing we know about insurance companies, it’s that they do their homework. They conduct studies, read reports, crunch numbers and make decisions based on data analysis and statistics. This means that when the FBI puts out crime stats saying that roughly every 15 seconds a home in America is burglarized, insurance companies are paying attention. Insurance companies also know that the average loss per burglary claim is around $4,000. Put those two facts together, and it’s no surprise that home insurance companies are willing to offer serious premium discounts to families with a monitored home security system.
Whether you are thinking about getting a home security system or you already have one, it pays to be aware of what kinds of discounts are available through your home insurance company. Not all systems are created equally or check all the boxes, but the right combination of features could lower your premium by up to 20%.
The most important feature for your home security system, as far as insurance companies are concerned, is centralized, 24/7 monitoring that can automatically notify emergency services in the event of a fire or break-in. One report showed that the discount offered by State Farm was over twice as much for a centrally monitored system vs a system that only alerts the homeowner.
Another big area that insurance companies are concerned with is fire protection. Fires can be more unpredictable and more difficult to prevent than break-ins, and fire and lightning claims are almost ten times higher than claims for burglaries. This makes monitored smoke detectors and heat detectors a crucial part of your home security system both for you and your family, as well as for your insurance company.
Fire isn’t the only non-burglary disaster that your home security system can help prevent. Carbon monoxide sensors can help prevent gas leaks, temperature sensors can help prevent freezing pipes, and water sensors can help prevent flood damage. Having these extra environmental sensors in your home and connected to your security system is part of a complete home security solution, and can give the discount on your insurance premium an extra 5-10% boost.
Every insurance company handles these discounts a little differently, so talk to your insurance agent for specific discount information in your area. Then, contact SAE to find out how they can put together a custom system for you, that maximizes your insurance provider’s offered discounts and keeps your home and family safe.