Feeling safe inside your home is a necessity, but does adding a home alarm system have more benefits than getting a better night's sleep? We'll tell you, and we'll tell you if it'll help lower your insurance costs.
Fortunately, an independent insurance agent is an expert on the risks you might face as a homeowner and what you can do to lower your insurance premiums. Safety is a top priority for homeowners, and an agent can not only assure that you have the best insurance policy for protection but advise you on adding an alarm system that can lower your insurance rates.
Does Having an Alarm System Help Lower Your Insurance Premium?
The short answer is yes. Being proactive in making your home safe means that you're lowering the chances of theft or burglary, which is a common insurance claim. Insurance is based heavily on risks that will result in an insurance claim, so anything you can do to mitigate the risks and lower your chances of making a claim is good for your insurance rates.
The amount of a discount you receive depends on a variety of factors including the type of system you install, your insurance company, and the location of your home. Homeowners can expect to see up to a 25% discount on their premium by installing a home security system.
What Kind of Alarms Does That Include?
There are a variety of security systems and alarms available for your home, and certain types can increase the discount and benefit to your insurance premiums.
Alarms that detect leaks: Water damage is one of the leading home insurance claims. Installing an alarm system that can detect a water or a gas leak can help you save money. These systems allow you to get an alert on your phone so you can stop the leak before it gets serious. Some systems even allow you to turn off the water straight from your phone.
Deadbolts: Adding deadbolts to your doors and home can add up to a 5% discount to your insurance premium.
Security cameras with 24/7 monitoring: While throwing up a personal camera might not do much for your insurance rates, adding a security camera system that runs 24/7 and includes professional monitoring can lower your insurance premiums.
Security systems that offer professional monitoring: It's likely that your insurance company will require that your security system offers professional monitoring. This means that installing a personal camera that you check every night probably won't cut it. You'll need to go with a legitimate security or alarm system that includes monitoring like ADT, Ring, SimpliSafe, Nest, Vivent, or similar.
Smoke and fire alarms: Of course your home should be properly fitted with smoke and fire alarms, but some companies now offer monitored alarms that will notify you of any smoke in your home when you're not there. Once again, this allows you to prevent a fire before it happens, reducing the possibility of an insurance claim. Having smoke alarms can get you up to a 5% discount on your insurance.
Your independent insurance agent can help you determine which security systems and elements will benefit your property the most.
Will My Property Coverage Be Affected by an Alarm System?
Property coverage is part of your homeowners insurance policy and usually includes property and liability coverage. No matter how careful and proactive you are, there's always a chance that someone can burglarize your home. If someone does break into your home, your property coverage can protect you in a variety of ways.
- If the burglar does physical damage to your property, such as breaking a window or door, your property coverage will pay to repair or replace the property.
- If a burglar steals your personal belongings, property coverage will pay to replace the items, but the limits are often fairly low and not all personal items are covered.
It's best to work with your independent insurance agent to understand what's covered and where you might be exposed.
How Does Liability Coverage for Homeowners Apply Here?
Liability coverage is protection for when a third party is injured on your property. In regard to security systems, this could come in handy if you have a professional on your property installing an alarm system and they're injured. A professional worker can be injured in a variety of ways on your property including a slip and fall, dog bite, or fallen object. Falls are the leading cause of hospital visits totaling eight million cases a year. If a worker is injured on your property and decides to sue you, you'll have to deal with the claim financially. This includes legal fees and any medical bills if you're found at fault. Fortunately, liability insurance will take care of those fees and bills for you.
How Much Does an Alarm System Lower My Premium?
An alarm system can lower your premiums anywhere from 5% to 25%. As we mentioned before, the more proactive you are at installing security measures, the higher your premium rates can drop. It also helps to get creative with your systems and make sure you're doing more than just detecting a robber. Consider installing systems that lower the risk of gas and water leaks, smoke damage, and fire damage.
Any Other Updates I Can Make to Lower My Premium?
There are a number of ways you can receive home insurance discounts on your premium, including updates to your home to make it more secure. Some easy and cost-effective things you can do to make your home more secure include:
- Check your roof: Reinforce your roof and make sure it does not have any damage or is at risk of a leak.
- Install storm shutters: Storm shutters can save your windows and house during a hurricane, tornado, or nasty storm.
- Upgrade your smoke detectors: Modern smoke detectors can warn you of smoke even if you're not home.
- Improve home systems: Upgrading your major systems like electrical, heating, and plumbing systems makes your home less vulnerable to fires and leaks and can result in lower premiums.
- Get a generator: If your electrical system goes out, a generator can help keep your appliances running, which in turn reduces the risk for frozen pipes, spoilage from a broken down refrigerator, and the like.
- Install a sprinkler system: A sprinkler system can help eliminate a fire inside or outside your home.
Here’s How an Independent Insurance Agent Would Help
When it comes to securing your home and saving money on your insurance premium, an independent insurance agent can help. They can help you determine the best upgrades for you. They will search through multiple carriers to find providers, deliver quotes from a number of different sources, and help you walk through them all to find the best blend of coverage and cost.
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