Home security systems promise two things. Better protection and lower insurance costs. The second claim is often unclear, so homeowners end up guessing whether the savings are real or just marketing.
So let’s answer it properly.
How much does a home security system save on insurance, and what actually affects the discount?
This guide explains how insurance discounts work, what type of security system matters, and how much you can realistically expect to save on your home insurance premiums.
The Short Answer on Insurance Savings
Most homeowners with a monitored security system see insurance discounts between 5 percent and 20 percent on their home insurance premiums.
The exact savings depend on:
• The type of security system
• Whether it includes professional monitoring
• Which security features are installed
• Your home insurance company
• Your home insurance policy terms
For many homeowners, the discount is real, but it is rarely dramatic.
Why Insurance Companies Offer Security Discounts
Insurance providers care about risk. Security systems lower the risk of theft, fire damage, and water damage. When risk goes down, insurance costs can follow.
From an insurer’s perspective, a home with a monitored alarm system is less likely to experience:
• Burglary and forced entry
• Major fire damage
• Undetected water leaks
• Costly property damage
Fewer incidents lead to fewer claims. Fewer claims mean lower costs for insurance providers.
That is why many home insurance companies offer a home insurance discount for approved security measures.
What Types of Security Systems Qualify for Discounts
Not every security device lowers your home insurance premium. Insurance companies focus on systems that actively reduce claims, not just provide video footage.
Monitored Security Systems
A monitored security system offers the biggest insurance savings.
These systems connect to a security company that provides professional monitoring. When an alarm is triggered, the monitoring center can contact you, send emergency services, or alert law enforcement.
Insurance companies prefer monitored alarm systems because they reduce response time and damage severity.
This category includes:
• Monitored home security system setups
• Monitored alarm system packages
• Burglar alarm systems with professional monitoring
These systems often qualify for the highest security discounts.
Unmonitored and DIY Systems
DIY systems and unmonitored security cameras offer limited insurance savings.
While security cameras, video doorbells, and smart locks improve home safety, most insurers do not offer meaningful insurance discounts unless professional monitoring is involved.
DIY systems are still a good idea for personal safety, but they usually produce smaller financial benefits.
Security Features That Increase Insurance Discounts
Insurance discounts depend on the security features installed, not just the system brand.
Burglary and Entry Protection
Features that reduce theft risk carry the most weight.
These include:
• Door and window sensors
• Motion detectors
• Motion sensor coverage near entry points
• Burglar alarms connected to monitoring
Homes with strong front door protection and window sensors often qualify for better discounts.
Fire and Environmental Protection
Fire-related claims are expensive. Insurance companies strongly value fire alarms and early detection.
Qualifying safety measures often include:
• Smoke detectors tied to the alarm system
• Smoke alarm monitoring
• Fire alarms with professional monitoring
• Carbon monoxide detectors
Adding flood sensors, leak detectors, and water sensors can also help lower home insurance costs, especially in areas prone to water damage.
How Much Money Do Homeowners Actually Save?
Insurance savings vary widely, but realistic expectations matter.
On average:
• Basic monitored security systems save 5 to 10 percent
• Systems with fire alarms and smoke detectors can save 10 to 15 percent
• Comprehensive systems with water detection may reach 15 to 20 percent
For a homeowner paying $1,500 per year in home insurance premiums, that equals $75 to $300 per year.
These savings help, but they rarely cover the full cost of security system installation and monitoring.
Why Discounts Vary Between Insurance Companies
Insurance providers calculate risk differently.
Some companies offer flat security discounts. Others adjust savings based on claim history, ZIP codes, or property taxes. Climate change and regional crime rates also influence how insurance advisors assess risk.
For example, an insurance broker may offer higher discounts in areas with frequent property damage claims. Another insurance agent may limit discounts if burglary rates are already low.
Always ask your home insurance company directly rather than relying on estimates.
How to Claim a Home Insurance Discount
Homeowners do not receive insurance savings automatically. You need to take action.
Contact Your Insurance Provider
Call your insurance advisor or insurance broker and ask specifically about security discounts.
You may need to provide:
• Proof of professional monitoring
• Security system installation documentation
• A certificate from your security company
Some insurers accept digital confirmation through a mobile app or email address provided by the monitoring service.
Review Your Home Insurance Policy
Security discounts apply only to certain policies.
Check your homeowner’s insurance policy to confirm:
• Which security features qualify
• Whether monitored home security systems are required
• How discounts affect your home insurance premium
Discounts usually apply at renewal, not mid-term.
Do Security Systems Reduce Insurance Claims?
Yes, and that matters long term.
Homes with security measures often experience fewer claims. Fewer claims help keep home insurance rates stable and avoid premium increases after a loss.
Even when insurance savings are modest, avoiding a major home insurance claim can save much more money over time.
This long-term impact is often overlooked.
Is a Security System Worth It for Insurance Savings Alone?
For most homeowners, the answer is no.
Security systems should be viewed as a safety investment first, with financial benefits as a bonus.
The real value includes:
• Peace of mind
• Faster emergency response
• Reduced property damage
• Fewer insurance claims
Insurance savings help offset costs, but they should not be the only reason to install a system.
Common Home Security Mistakes That Reduce Savings
Some homeowners miss out on insurance discounts because of simple mistakes.
These include:
• Choosing unmonitored systems
• Forgetting to notify the insurance company
• Installing security features that do not qualify
• Letting monitoring lapse
Security discounts often disappear if monitoring is cancelled.
Final Takeaway on Insurance Savings
A home security system can save money on insurance, but the savings depend on the type of system and the security features installed.
Most homeowners save between 5 and 20 percent on home insurance premiums when using a monitored security system that includes burglary, fire, and other safety measures.
The bigger benefit comes from fewer claims, lower repair costs, and long-term home safety.
If you already value home security, the insurance savings are a solid extra benefit.
