Homeowners who are trying to find ways to save money on insurance for their homes may not be aware that investing in a is one way to get a deep discount on their policy. While there a number of other discounts that an insurance company might offer, home security discounts are among the most when it comes to saving money. This can both offset the cost of the system and offer any homeowner an annual savings that can positively impact their household budget.
While installing an alarm system is a major investment, the money homeowners can save on insurance is substantial.
The nation’s insurance companies are encouraging homeowners to install monitored security systems by offering them substantial discounts on homeowner’s insurance. “A survey of the 10 largest insurance companies offering homeowners coverage found premium discounts up to 20 percent if a home is equipped with a monitored alarm system,” said Dom D’Ascoli, president of the ESA.
However, even though homeowners’ insurance discounts are highly sought after because of today’s high premiums, consumers should proceed with caution before they go out and buy an alarm system.
Before buying a or switching to an insurance company that offers a discount for having a an alarm in place, homeowners should first do a bit of research to understand how these discounts work and under what circumstances they are offered. Some studies indicate that while most major insurance companies do offer these discounts, they are only valid if the homeowners’ insurance policy covers more than just burglary. In some cases, the policy must cover burglary, fire damage, and other circumstances before the discount can be applied. While insurance companies look favorably on homes that do have alarms in place, not all of them instantly reward them with home security discounts. Homeowners should know all of their rights and options before they buy an alarm system and discuss any discounts with their insurance agent so that there are no surprises.
Homeowners who are unsure about how having a security system in place will impact their homeowners’ insurance run the greatest risk of overspending on a system, because its price will not be offset by a deep enough discount. While these home security discounts are tempting, they should not be the deciding factor on purchasing a system or modifying a homeowners’ insurance policy. When shopping for a policy, consumers should be wary of companies that hype these discounts or push them as a major feature of any policy.
Kris Murphy
Author – Kris has been learning the ropes, but already has 4 years of industry experience working with us. He is in charge of researching our security system reviewsand putting together new content for our site’s blog section.