How Insurance Discounts Work for Home Security Systems

You can get a up to 20% discount on your homeowners insurance by having a monitored system. The discount depends on the insurance company, but most of them offer it. If you want to get the full 20% most of the companies require that you have monitored fire protection too. This means that you should get a smoke detector with your security system.

It’s a discount not a hack

You will have a hard time finding a system where the cost of the system is less than the amount of money you save. The average cost of homeowners insurance is $1,200 per year. If you manage to get the maximum discount of 20% that would be a savings of $240 per year. You will need to get something like Ring alarm, which is \$10 per month, to see some kind of savings. That doesn’t include the upfront costs of getting the equipment.

The Ultimate Savings

The only real way to save a lot of money on the alarm is by getting something super affordable, such as a DIY system, with a smart thermostat. If you get a smart thermostat, it will tie into the system and know when you are home and away. When you leave the home, the thermostat will adjust the temperature of the home which will use less energy and save you money. This can save you between $20-$20 per month from your energy bill.

If you take these savings plus the savings from your homeowners insurance you will be able to cover the costs of the security system. In a way it is like getting a free system.

Final Thoughts

Most people get a system because they want something watching over their home while they're away. As of right now, there is no good option that is so cheap that it will cover the cost of the system. Unless, you are paying thousands per year, it is only worth getting a system because you want/need one. If you are still interested in getting a system, you can check out my review of the best home security systems on the market right now.