Insurance premiums are often reduced by having active alarm or security systems in place. (Courtesy photo)
Insurance premiums are often reduced by having active alarm or security systems in place. (Courtesy photo)

Even when homeowners think they live in a safe neighborhood, they could be at risk for a burglary. If they find their possessions missing or damaged after a burglary, homeowners could file a claim with their insurance company. However, after experiencing a home theft several times, homeowners could see their insurance premiums rise.

By installing a home security system with burglar alarms, homeowners can deter thieves from breaking into their homes. Ninety percent of convicted burglars said they would avoid homes with alarm systems.

With the frequency of home theft, homeowners should consider whether a security system is worth it, not only to protect their belongings, but also save on insurance.

If you install a monitored home alarm, there is less of a chance that you will be robbed and, therefore, that your insurance company will have to shell out thousands of dollars to cover your losses. Reduced risk for your provider means a reduced premium for you.

The risk-cost benefits of an alarm system don’t stop with crime reduction, either. There’s another reason for that insurance discount: fire safety. Modern alarm systems also help protect against fire damage, one of the costliest claims for insurance companies. In fact, fire and lightning claims account for almost 10 times the number of insurance claims of theft and burglary. So, protecting your home from fire damage means even less risk for your insurance company – and the reason for that serious discount on your homeowners’ insurance.

Here are five ways to reduce insurance costs with a security system:

1. Boost home safety

Insurers may provide a discount on insurance premiums if homeowners have a security system, which can help increase home safety. The decrease in incidents that could result in damaged properties could show insurance companies that homeowners are less of a risk and could qualify them for discounts.

2. Save up to 20 percent on insurance premiums

-Homeowners could see their insurance premiums drop between 15 and 20 percent if they install a comprehensive home security system, according to the Insurance Information Institute. Not only can they reduce their insurance costs, they can also save money on buying these security systems if they ask about discounts.

3. Lower risk of cost hikes

To avoid higher insurance costs, homeowners should make sure that they carefully read their policies. Home insurance companies may decide to increase home insurance in case a burglary occurs, according to The Simple Dollar.

4. Reduce theft claim quota

Security systems can also help save neighbors money by limiting the total theft claim quota. The Simple Dollar recommended homeowners ensure their neighborhood has not reached their theft claim quota, or the number of thefts within a certain area.

5. Install systems with other safety features

Additionally, homeowners can look for other safety features to lower their insurance premiums. These include smoke alarms and deadbolts. The combination of a security system and other ways to protect their home could save them the stress of worrying about safety and money.

CoverHound specializes in online search tools to save on homeowners’ insurance.

This correspondent is a guest contributor to The Washington Informer.

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