Casa Security

How burglar alarms affect home insurance premiums

We are all aware of the benefits of having additional security in our home or business, but have you also considered how a security system can affect insurance costs, especially the part where it can bring your premiums down? You may be surprised by this hidden bonus that many people perhaps do not consider when deciding if a security system is worth the expense. Here is how to protect your home and your loved ones and enjoy the financial rewards that a home security system can offer. 

Speak with your insurer

As with any service provider, terms and conditions vary between insurance providers. Contact your provider or broker and ask “How do burglar alarms affect the cost of my home insurance”?. They will be able to advise accurately what benefits are available for you personally, depending on which system you choose, where you live and your past claims history. However, let’s visit some of the broader more general savings that can be achieved through installing a home security system.

Work towards a no-claim bonus

A no-claim bonus is common among insurers. If you have a burglar alarm installed, your risk potential of a break-in and the resultant need to make a claim is reduced, meaning your likelihood of being able to take full advantage of a no-claim bonus is increased. This is one of many positive examples of how a security system can affect insurance costs.

Reduced premiums for heightened security

Some insurance providers offer more competitive rates for properties with heightened security. The better your level of security, the less chance there is you will need a payout for a claim and this is recognised by offering reduced premiums. When deciding on the level of security to install, you need to think about whether you want to include CCTV, 24/7 monitoring or door access security. Take into account the question, “How do burglar alarms affect the cost of my home insurance“?. You may find that an extra level of security actually pays for itself in the long run with reduced insurance premiums.

Mitigate future premium increases

If your home is secure and your resultant claims history proves the lessened risk, you may find your insurer will not subject you to cost increases. Of course, there are factors outside of your control regarding whether your area in general has a lot of claims and is identified as high risk. This can be mitigated through discussions with your insurer on how a security system can affect insurance costs. You may find upgrading from recorded-only CCTV to 24/7 monitoring could minimise these potential price hikes.

Additional safety advantages

Aside from reducing the risk of break-ins and consequent theft or vandalism, fire is one of the most common reasons a homeowner will claim on their home insurance. Most security systems these days incorporate fire and smoke detection into the core system which adds additional protection for your home. Yet another bonus to bring those premiums down while keeping you and your family safe.

Choose a reputable security firm

Self-installed systems, dummy cameras or engaging a less reputable security firm may not help to achieve your goals of a secure home and the resulting reduced insurance costs. How a security system can affect insurance costs is highly dependent on how good the security system you choose is and if your insurer recognises the company you have enlisted.  Ask your insurer if your chosen security firm is one that they consider reputable. Look for someone who goes beyond installation and offers maintenance, monitoring and ongoing service like the team at Casa Security, the burglar alarm specialist in Perth.

Cost savings statistics

It has been shown that depending on what level of security you install, and which insurance provider you engage with, you can expect to save anywhere from 2% to 20% on your insurance premium costs by installing a quality security system. This is a significant saving when you consider how much the average homeowner spends on insurance and other household expenses. The cost of protecting your household is high enough as it is and if there are financial benefits that can be enjoyed as a result of doing this then it is well worth investigating what kind of cost-savings you can achieve.  

Speak with a security expert today

All in all, the answer to the question, “How do burglar alarms affect the cost of my home insurance“? is that you will save money. While being well aware that security systems are not simply an insurance premium cost-saving tool, there is no reason you cannot factor this into your decision-making on which is the best system to keep your property and loved ones safe. Contact the team at Casa Security today to discover how protecting your home can also be the key to protecting your bank balance as well.