Do Home Security Systems Lower Homeowners Insurance? Typical Discounts Explained

Quick answer: Yes, in most cases. Many insurers offer a discount on the home insurance premium when you install a monitored security system, and the amount varies widely by company, state and system type. Centrally monitored burglar, fire and water-leak systems usually earn the biggest credits, but you typically have to ask for the discount and provide proof.

If you are wondering whether a security system can trim your yearly bill, the answer depends on what you install and how it is monitored. This guide explains which features usually count, what discounts look like, and how to get the paperwork your insurer wants. Want help comparing systems and policies? You can request free quotes using the form on this page.

Do Security Systems Lower Insurance Premiums? What Insurers Look For

Insurers price risk. A home with a monitored alarm is less likely to suffer a large theft loss, an unnoticed fire or a long-running water leak, so many carriers reward it with a credit.

The discount is not automatic. Most companies want to know three things:

• What the system detects: burglary, fire/smoke, water, or a combination.
• Who monitors it: a 24/7 central station that dispatches help, or just you via an app.
• Whether it is verifiable: a certificate or proof of active monitoring.

For background on what drives your bill in the first place, see our breakdown of how much homeowners insurance costs and what drives your premium.

Which Security Features Usually Qualify for a Discount

Not every gadget counts equally. Here is how features commonly rank, from most to least likely to earn a credit:

1. Central station monitoring with burglar, fire and smoke detection. This is the combination insurers recognize most consistently.
2. Water-leak sensors with monitoring or automatic shutoff. Water damage is one of the most frequent claim types, so some carriers offer separate credits.
3. Monitored smoke and heat detectors. Often rated higher than battery-only alarms in the house.
4. Deadbolts, smart locks and cameras. These may help, but many insurers give little or no credit unless tied to a monitored system.
5. Local-only sirens or self-monitored apps. These frequently earn the smallest discount, or none.

If you are weighing monitoring options, our guide to professional vs self-monitored home security explains why the monitoring type matters for discounts as well as safety.

The discount usually follows the monitoring, not the hardware: a camera alone rarely moves your premium.

How Big Is the Discount? Typical Amounts Explained

There is no national rate. Discounts vary by insurer, state, home value and the system you install. As a rough, non-guaranteed estimate, many homeowners see credits from a few percent up to around 15-20% on the portion of the premium tied to theft or fire risk.

Keep these points in mind:

• It is not always a flat percentage of your whole bill. Some insurers apply the credit only to certain coverage parts.
• Some states regulate how discounts are filed, so availability differs by location.
• Higher-value homes or high-crime areas may see larger dollar savings.
• Stacking is possible. A burglar, fire and water package may earn more than burglar alone, within the insurer’s limits.

Does the discount pay for the system?

Often not by itself. Monitoring commonly costs roughly $20 to $60 a month, or $240 to $720 a year (estimate), while a discount might be $50 to $300 a year. Think of the credit as a partial offset and weigh it against safety, convenience and the monthly fee. Our home security system cost guide breaks down equipment, installation and monthly fees.

How to Get the Discount: Step by Step

1. Call or message your insurance agent. Ask what protective-device discounts exist and what documentation is required.
2. Choose a qualifying system. Confirm it uses a central monitoring station and covers the hazards your insurer rewards.
3. Request a monitoring certificate. Your alarm company can usually issue a certificate or letter of protection showing the system type, monitoring status and installation date.
4. Send the certificate to your insurer. Email it to your agent or upload it to your policy portal, then ask for written confirmation of the discount.
5. Re-verify each year. If you cancel monitoring or switch providers, notify the insurer. Dropping coverage without telling them can lead to a lost discount or a coverage dispute.

When shopping for a provider, our list of 12 questions to ask before you sign includes whether the company supplies insurance certificates. Prefer to skip a long contract? See no-contract home security options, and confirm your insurer accepts the monitoring plan.

Insurers can only credit what they can verify, so the certificate matters as much as the equipment.

Beyond the Discount: Coverage, Claims and Smart Next Steps

A security system lowers risk, but it does not change what your policy covers. A monitored alarm will not turn a gap in coverage into a covered loss. It helps to understand what homeowners insurance covers, including dwelling, belongings and liability, before you assume anything is protected.

Here are smart moves to stack savings and protection:

• Bundle and compare. Shop quotes with and without the system so you see the real effect.
• Raise your deductible carefully if you can afford it, in addition to the security credit.
• Add water protection. Leak sensors can prevent a costly claim, and are worth considering even without a discount.
• Check flood needs separately. Standard policies generally exclude flooding; read flood vs water damage coverage.

Planning to explore more savings? Our upcoming guide on how to lower homeowners insurance covers other levers beyond security, and you can browse the home insurance hub and home security hub for more.

Ready to see what a monitored system and the right policy could do for your budget? Request your free, no-obligation quotes with the form on this page.

FAQ: Security Systems and Insurance Discounts

Do all insurance companies give a discount for a security system?

No. Many do, but not all, and the terms differ. Some offer discounts only for centrally monitored systems, while others recognize cameras or smart locks. Ask your agent for specifics.

Will a DIY or self-monitored system qualify?

Sometimes, but often with a smaller credit or none at all. Insurers tend to prefer professional, 24/7 central station monitoring because response is more reliable and easier to verify.

How much can I expect to save?

It varies by insurer, state and system. Many homeowners see savings from a few percent up to roughly 15-20% on part of the premium (an estimate, not a guarantee). Get written quotes to see your actual number.

Do I need to send proof to my insurer?

Usually yes. Request a monitoring certificate from your alarm company and send it to your insurer. Keep a copy, and renew or update it if you change providers.

This article is for general education and is not insurance advice. Talk with a licensed insurance agent about your specific policy and eligibility.

Related: Where to Place Home Security Cameras: A Room-by-Room and Yard Guide