Security Tech Promises Lower Home Insurance Rates: Here's What Works
Home tech is filled with promises about insurance discounts. Here are what purchases can really help you save -- or even pay for themselves.
A simple home security system, like this basic hub from Kangaroo, can offer some attractive financial bonuses.
Shop for home security and you soon run into a specific kind of guarantee in product descriptions or along with subscription bonuses -- that home security gadgets can lower your homeowners insurance (the policies that cover fire, theft and similar events). Check with insurance companies like Progressive, State Farm or Allstate, and you'll find it's true. Home security tech can lower your insurance bills by 5% to 15% or more.
Since homeowners insurance in 2024 can cost over $100 per month (sometimes well over, depending on the state you live in), those discounts can save $10 to $20 per month. That's nothing to ignore, especially since it can pay back the cost of a security system in a few years.
But there are a lot of home security gadgets: Which ones actually count as lowering your homeowners insurance and by how much? Let's go through popular purchases to see if they qualify and how much they can save you.
A single device like a video doorbell or security camera?
Answer: Probably (2% to 5% discount)
One security camera can probably get you a small insurance discount.
A single security camera or video doorbell on your property can usually knock off a few percentage points from your homeowners insurance premiums. Insurers like to see cams not only as a preventative option but as a way to collect evidence in case of a crime or property damage, making their jobs much easier. These cameras often don't require subscriptions and don't include monitoring services, so you can consider them a one-time purchase. Take a look at our outdoor security camera recommendations to see some popular options.
Insurance companies may have rules regarding what features a camera must have to qualify, such as motion detection (very common), self-monitoring alerts (always included via app) or a higher resolution on the camera. Some may count cams only if they're connected to a larger home security system. Check the details to learn more.
Important note: Discounts will vary based on the insurance company. Some won't offer many discounts at all. Some may have a flat rebate, like $20 to $40 off your annual problem. But percentages are common and provide a useful way to gauge potential savings, so we're using them. Always contact your insurance agent to ask about your specific discounts before buying home security tech.
A smart lock?
Answer: Possibly (2% to 5% discount)
Smart locks of the right caliber can help you save.
A smart lock makes managing access easier and fixes problems like forgetting to lock the front door. You can also create temporary passes for people rather than handing out precious physical home keys. Watch for homeowners insurance discounts like a smart deadbolt that includes a keypad, or smart locks on every external door in the house.
A full home security system?
Answer: Likely (5% to 15% discount)
Abode's starter kit is super affordable and works with many third-party products.
A full home system includes door and contact sensors to help detect break-ins. These systems can be fully DIY, and cheap versions may cost only a couple hundred dollars to start with. Plus, most allow you to add more sensors, cams or other devices in the future. Abode and Vivint in particularly have excellent support for third-party devices from other brands.
Because of the more complete coverage, home security systems are even more likely to qualify for insurance discounts and make it easier to increase potential discounts by adding more devices. Contact sensors, glass break sensors, a panel to arm or disarm and a security cam or two is a powerful combination that many insurers offer benefits for. Adding a compatible temperature monitoring system or leak detector can bump savings even higher.
Again, watch for requirements like have certain kinds of sensors, having sensors on all access points in your home and other fine print insurers may have.
Professional home monitoring services?
Answer: Almost certainly (up to 20% discount)
Home security monitoring is most likely to net you with discounts.
A professional eye on your home can cost around $20 to $30 or even less per month and connects your system with a monitoring center that can watch for trouble and contact first responders even if you aren't available. They may even be able to use audio or sirens to scare burglars away. SimpliSafe's advanced system even recognizes friends from strangers to improve reactions.
Monitoring is an excellent way to mitigate damage from break-ins or fires, so they're very likely to win some discounts from insurance companies.
Note: Insurance companies may offer different rebates for different kinds of monitoring. You may get one discount for burglar monitoring and a separate discount for professional fire alarm monitoring. Most professional monitoring services offer both in a combined package.
Environmental sensors like leak detectors or smart smoke detectors?
Answer: Possibly (2% to 5% discount)
Kangaroo includes a climate sensor, aka leak detector, in it's expanded eight-piece home monitoring kit.
Leak detectors are helpful for alerting home-havers to leaks in bathrooms or under sinks, while smart smoke detectors offer better monitoring options and blessedly quiet battery updates. However, neither of these by themselves may enough to qualify for an insurance discount.
Instead, these sensors are more likely to qualify for savings if they are part of a larger home security system or connected to a professional monitoring service. Insurance companies especially like to see leak detectors in a security system and may offer additional savings if you add one. Many platforms offer support for things like leak sensors, but for a particular compact and affordable option, check out Arlo's eight-in-one sensor approach.
Note: When it comes to specific devices like leak detectors, insurers may have specific brands that they require.
Does homeowners insurance ever require a home security system?
It's not universal, but certain insurance packages or additions may require specific home security devices and even professional home monitoring. These requirements can also vary based on location or the value of nearby homes: If you're moving to a new home, study your homeowners insurance policy carefully to note any home security mandates.
What if the bank pays for my homeowners insurance?
In some cases, people pay homeowners insurance into an escrow account managed by their lender, which in turn chooses and pays for homeowners insurance and other fees. This may be a requirement of a mortgage, at least for the first year or so.
In situations like this, insurance companies may not offer the same kind of discounts, or you may not be able to save much money depending on the details of your mortgage. However, you can contact your lending bank to discuss remitting the escrow payments for insurance and handling the insurance directly if you prefer.
To save even more money, consider bundling your insurance policies or looking for especially cheap home security cams. There are also ways to save a lot of money on professional home monitoring.