How does a home security system affect your insurance rates?
Posted on April 30th, 2008 in Home Insurance
FaZizzle asked:
Any advice, negative or positive, would be nice.
Any advice, negative or positive, would be nice.
We’re considering it, and we’re meeting with the guy who would put it in tomorrow.
How much did you pay?
Is it worth it?
How was your home insurance affected?
This post has 4 comments
May 1st, 2008
Most insurance companies offer a discount for MONITORED alarm systems… Wether or not it is worth is something you have to decide based on your need for it and how much you pay for the system + insurance vs insurance alone. I personally believe that your home and your family is your investment and you can put no cost on your familys saftey so IT IS WORTH IT!!
May 1st, 2008
In general, you get about a 5% discount for having a monitored system. It doesn’t pay for the system, but the reduced premium helps pay for it. And doesn’t it the piece of mind make it worth it.
May 2nd, 2008
I don’t know what things are like where you live, however here (Vancouver, BC, Canada) most insurance companies give up to 20% off depending on the protection you have. The better the system the less risk of loss hense lower rates.
Things which can effect your discount are whether all the windows and doors are contacted, motion detectors, pre-entry protection (Glassbreaks) and of course smoke detectors and sometimes you may get an even higher discount if you have line cut protection. You really should be contacting your insurance company for the specifics.
Many insurance companies will not give you a discount if the system is not monitored, some will. The thing is, an alarm system is about more than just the insurance discount, if you do not see the value of a security system, the peace of mind and freedom it can provide, then maybe you should consider window bars.
As for what a system should cost, well that all depends on the scope of protection, the size of your home and the difficulty of the installation. I would highly recommend staying away from a wireless system. If the sales person tries to tell you they are better than hardwire…. chase him / her out of the house… just my professional opinion. A good hardwired system should range around $ 1,200 upwards. If you have a really small house then you may be able to get it for around $ 900 but that is pretty small. An apartment might be around 350 to 500.
I have written a number of articles on security, both electronic and physical. You can find them on my website at. You would probably be interested in Protection 101, false alarm info and one on the truth about wireless security (It is in the archive)
Good luck, whatever you do, do not let the sales person talk you into something you do not feel comfortable with.
May 2nd, 2008
It gives you a discount, which varies from company to company and state to state. It can be anywhere from 5% to 20%. The central station monitored alarm saves you the most on your insurance.
Cost is going to vary wildly by location, and service company.
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