How Much Can I Save on My Homeowner's Insurance by Owning a Security System?

You can expect to save 5% to 20% on your homeowner's insurance by owning a security system. There are many different factors that go into determining the exact amount. Most insurance companies require that the system is connected with a central monitoring station to apply any discount.

The ability to receive a homeowner's insurance discount is one of the biggest perks of owning a security system. There are many cases where the savings will cover the entire cost of owning and operating the system. In other words, the user will receive alarm monitoring service at basically no cost. Plus, they will get the bonus of providing the best possible protection for their home and family. Most insurance companies will apply a 5% to 20% discount when a user provides proof of owning an alarm system.

However, there are many different factors that go into determining the exact discount that will be applied. These factors typically include the type of insurance coverage the homeowner has, the location of the home and the insurance company itself. Additionally, there are certain things that a homeowner should look for when shopping for monitoring service to try and maximize their homeowner's insurance discount.

First and foremost, a homeowner should make sure that their monitoring plan includes service with a UL-listed central station. Most insurance companies will not apply any sort of discount unless this is the case. Alarm Grid customers who have a central station monitoring plan are connected with Criticom, a UL-listed central station that meets this requirement. However, customers with self-monitoring plans are not set up with any central station. Self-monitored customers will usually not receive a discount.

Also, the homeowner should try and obtain the most robust security plan possible. Their alarm system should not only provide security coverage, but fire coverage as well. Many insurance companies will provide further discounts for having smoke and heat detectors that are set up with a central monitoring station. Some may offer further bonuses for having cellular monitoring and using carbon monoxide detectors. Other discounts may be provided for living in a gated community and for maintaining an active sprinkler system.

Please note that a Certificate of Alarm (CoA) is usually required to receive an insurance discount.

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