What to Consider when Planning to Buy an Alarm System to Lower Insurance Costs

Homeowners are always looking for ways to lower premiums without sacrificing coverage. For many, the answer is as simple as purchasing a home security system. If you are planning to buy an alarm system to lower insurance costs, there a few things you need to know first.

Types of Alarm Systems

There are two types of home security systems – monitored and unmonitored. Some insurers offer premium discounts for both, although the greatest savings are always provided through monitored systems. Although monitored systems usually cost more than unmonitored systems, much of the cost is offset through discounted insurance premiums.

What to Consider

On average, you can expect your homeowners insurance premiums to drop by as much as 20 percent once you install your alarm system. Considering average homeowner’s insurance premiums in America are approximately $800 to $1,000 annually, this could mean a savings estimated at $160 to $200 per year, or $16 per month. Chances are, the insurance savings will not completely pay for your monthly alarm monitoring costs, but it can lower your alarm costs by 30 to 70 percent.

Keep in mind, however, that your insurance premium discount will vary based on your insurance company. Contact your insurer to find out what alarm system discounts are available to you. This may also be a good time to shop and compare rates from other insurers as well.

Considerations

Keep in mind that other similar discounts may be available to you as well. For example, some alarm system companies also offer monitored smoke and heat alarms. Like burglar alarms, smoke monitors help ensure the fire department is deployed as soon as possible in the event that your home catches fire while you are away. This can help contain damage, as well as insurance replacement costs, resulting in an insurance premium reduction.

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