I’ve made my own calls to home insurance carriers
over the years to see just how big a discount you earn for having a monitored alarm system. The last time was late last year, and I posted my findings here.
Now ESA (Electronic Security Association)
, the national organization for US alarm companies, has done its own study
, and confirmed the results: insurance discounts for home alarm systems are alive and well!
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.
Many alarm companies include the insurance discount in their sales pitch: some even carry it a little too far. It’s true that your insurance savings are not going to pay for the system – but the money you save can be significant. It’s certainly worth it to check.
"The discounts can be substantial enough to pay a portion of the monitoring costs or installation of the system," said D'Ascoli. "The majority of insurance companies offer discounts for alarm systems," said Michael Barry, spokesperson for the Insurance Information Institute. "Homeowners should check with their individual carrier to determine the amount and availability of the discounts."
Why the Insurance Companies Care
A comprehensive two year study by Rutgers University School of Criminal Justice demonstrates why insurance companies are offering the discounts. The team of Rutgers researchers used sophisticated in-depth research techniques to eliminate the variables that impact crime rates and to focus solely on the impact alarm systems have on residential burglaries. "Thanks to modern technology alarm systems are more affordable, versatile and dependable than ever before," said D'Ascoli.
Research Proves the Point
"The Rutgers study showed that these technical innovations have increased the availability of home security systems to middle class homeowners and helped reduce crime," D’Ascoli continued. And, according to a study by Dr. Simon Hakim of Temple University, "An alarmed single family home is more than 60 percent less likely to be burgled than a similar home without an alarm."
Bigger Discounts for Fire plus Intrusion
The biggest insurance discounts come from a system that monitors for intrusion and fire – and here’s why.
In addition to discouraging burglars, modern alarm systems also reduce the damage caused by fires. Fire and lightning claims are almost 10 times higher than claims for burglaries and thefts according to statistics from the Insurance Information Institute. "The alarm's ability to notify the fire department whether or not anyone is at home or able to call for help is vital in reducing the cost of these claims and protecting building occupants," said D'Ascoli.
So, what did we learn? Let’s review the points:
- A monitored home alarm system reduces the chance that your home will be burglarized – by more then half.
- Insurance companies know this, and provide meaningful discounts (up to 20%) if your home is protected by such a system.
- You get the largest savings for a system that monitors for burglary and fire.
FrontPoint knows the insurance carriers provide these discounts, and we’re up front about the percentage savings: generally about 15%, but we have seen up to 20%. We also recommend fire monitoring for every system we sell, so you get the biggest discount. And, since we don’t charge extra for fire monitoring (the way some companies do), the extra savings are all yours – and so is the peace of mind. Just part of being the#1 rated alarm company in the US.