How Security Devices Can Lower Your Home Insurance Costs
Security devices can reduce your insurance premium, but the discount depends on what you install and which insurer you use
Most home insurers offer discounts when you install monitored alarm systems, deadbolts, security cameras, or smart locks. The size of the discount varies — some insurers cut your premium by 5 percent, others by 20 percent or more. The catch is that not every device qualifies, not every insurer offers the same discounts, and some require professional installation or monitoring to count.
Before you buy anything, call your current insurer and ask which devices they discount and by how much. The money you save might not cover what you spend, especially if you're buying high-end equipment. A $500 camera system that saves you $100 a year takes five years to pay for itself — and that math only works if you keep the same insurer.
Key Takeaways
- Monitored alarm systems typically earn the largest discounts, often 10 to 20 percent, but require a monthly monitoring fee that can offset savings.
- Your insurer must know the device is installed — you have to tell them and often provide proof, or the discount does not apply.
- Discounts vary by insurer and by device type, so comparing what your current company offers is the first step before buying anything.
- Professional installation and 24/7 monitoring increase the discount but add ongoing costs that may outweigh the premium reduction.
- Switching insurers can eliminate your discount, so factor that into the total cost if you think you might change companies.
Which devices earn the biggest discounts
Monitored alarm systems — ones that alert a monitoring center when triggered — earn the largest discounts because they reduce the insurer's risk most directly. You can expect 10 to 20 percent off your premium, though some insurers go higher. The trade-off is that monitoring costs $15 to $40 per month, which adds up to $180 to $480 a year. If your discount is $150 a year, you're paying more than you save.
Deadbolts and reinforced door frames earn smaller discounts — usually 2 to 5 percent — but they cost $50 to $200 installed and have no ongoing fees. They're a one-time expense that pays for itself quickly if your insurer offers even a modest discount.
Security cameras and smart locks fall in the middle. Some insurers discount them 5 to 10 percent, others don't discount them at all. Call your insurer first to confirm they recognize the specific brand or model you're considering.
Motion sensors, glass-break detectors, and smart home hubs rarely earn discounts on their own. Insurers care most about systems that either prevent entry (deadbolts, reinforced frames) or alert someone immediately (monitored alarms). Devices that just log activity after the fact matter less to them.
How to tell your insurer and claim the discount
Installing a device does not automatically lower your premium. You have to contact your insurer, tell them what you've installed, and ask them to update your policy. Many insurers require proof — a photo of the device, a receipt, or a certificate from the monitoring company.
For monitored systems, the monitoring company usually sends you documentation that you forward to your insurer. For cameras, deadbolts, or smart locks, take a photo showing the device installed and send it with an email to your insurer's customer service. Keep the receipt in case they ask for it.
The discount typically takes effect on your next renewal date, not immediately. Some insurers apply it mid-policy if you request it, but most wait until renewal. Ask when the discount starts so you know what to expect on your next bill.
When professional installation matters
Some insurers only discount monitored systems if they're installed by a licensed professional, not by you. Others don't care who installs it as long as it works. A few require the system to be UL-certified (a third-party safety standard) to count.
Professional installation costs $100 to $300 on top of the system price, but it can be the difference between getting a discount and getting nothing. Before you buy a DIY system, call your insurer and ask whether they'll discount it. If they won't, a professional installation might be worth the extra cost.
For deadbolts and smart locks, professional installation is rarely required for a discount. Most insurers just want to see that you have them.
Monitoring fees and whether they're worth it
A monitored alarm system costs $15 to $40 per month depending on the company and the level of service. That's $180 to $480 a year. If your insurer discounts your premium by $200 a year, you're breaking even or losing money.
The value of monitoring isn't just the insurance discount — it's that someone responds if your alarm goes off. If you're away from home or asleep, a monitoring center can call the police on your behalf. That matters more to some people than the premium savings. But if you're buying monitoring purely for the insurance discount, do the math first.
Some insurers offer larger discounts if you use their preferred monitoring company. Ask whether switching from your current monitoring service to theirs would increase your discount enough to offset any difference in monitoring fees.
What happens if you switch insurers
Your discount is tied to your policy with that insurer. If you switch companies, the new insurer may not offer the same discount for the same device, or may not discount it at all. You keep the device, but you lose the savings.
This matters most if you're considering a monitored system with a long-term contract. A three-year monitoring contract locks you in, but if you find a cheaper insurer in year two, you can't take the discount with you. You're stuck paying for monitoring that no longer saves you money.
Before signing a monitoring contract, ask your new insurer in writing what discount they offer and for how long. Some insurers may provide the discount for the life of the policy; others review it at each renewal.
Combining devices for larger discounts
Some insurers offer stacked discounts — you get 5 percent for a monitored alarm, plus 3 percent for deadbolts, plus 2 percent for cameras, for a total of 10 percent off. Others cap the total discount at 15 or 20 percent no matter how many devices you install. Ask your insurer whether discounts stack and what the maximum is.
Stacking can make a difference, but only if each device actually earns a discount with that insurer. Installing five devices that only three of them recognize wastes money. Get the discount structure in writing before you buy anything.
Frequently Asked Questions
Do I have to use a specific brand or monitoring company to get the discount?
Some insurers do require a specific brand or monitoring company. Others accept any UL-certified system. Call your insurer and ask for a list of brands or monitoring companies they recognize. If you already own a system they don't discount, switching may not be worth it.
What if I install a device but then move?
You can take the device with you if it's portable (cameras, smart locks, some alarm systems). You'll need to notify your new insurer and provide proof of installation at your new address. Hardwired systems like some alarm panels stay with the house.
Can I get a discount for a system I installed myself?
It depends on the insurer and the device. Deadbolts and smart locks are usually fine if you install them yourself. Monitored alarm systems often require professional installation to count. Ask your insurer before you buy.
How long does it take for the discount to show up on my bill?
Usually at your next renewal date, which could be several months away. Some insurers apply mid-policy discounts if you request them, but most don't. Ask when the discount takes effect so you know what to expect.
Will the discount stay the same if I renew my policy?
Most insurers keep the discount as long as the device is still installed and you keep paying for monitoring (if required). Some review discounts at renewal and may change them. Ask your insurer whether the discount is may provide for future renewals.