Does a Home Security System Reduce Your Insurance Costs?

Posted March 27th, 2023 by SimpliSafe

Buying or renting a home comes with a lot of expenses, from utilities and maintenance to property taxes and home insurance. Understandably, frugal homeowners are likely on the hunt for ways to reduce their monthly or yearly expenses for their homes wherever possible. Luckily, not all costs are fixed, leaving you room to cut costs. Such is the case with home insurance. 

Home insurance is a variable cost, and the amount you pay each month depends on a variety of factors. One way to reduce your home insurance costs? Adding a home security system.

What Impacts Home Insurance Prices?

Before researching home insurance plans, it’s worthwhile to understand what impacts home insurance prices. The main factors include:

  • Home location

  • The price of the home

  • The size of the home

  • The history/condition of the home

  • Your credit score 

  • What you're insuring inside your home

  • Your deductible

According to MarketWatch, though, the average home insurance premium is $104.08/month. However, there are ways to lower your monthly cost, such as having proof of a home security system. Home insurance companies such as Hippo and Branch provide discounts to members who specifically have a SimpliSafe home security system installed in their homes. 

What’s Covered in Home Insurance?

Home insurance plans can get very specific, but in general, they cover the repair costs from common home damages (such as those caused by fire, smoke, or other weather events), liability costs (which protects you in the event someone gets injured on your property), recovery costs after an instance of theft or vandalism.

Despite the comfort that comes from having home insurance and knowing that most damages will be covered, filing an insurance claim can be a lengthy and stressful process. Plus, for each claim you file, you could raise your premium, thereby hiring your wallet in the long run.

Smart and frugal homeowners should consider installing smart home technology that helps prevent such damages from occurring in the first place and avoids the stress that often comes with filing a claim. Smoke detectors, water sensors, and outdoor cameras can alert you to environmental hazards before they turn into costly damages, and entry and motion sensors can help prevent burglary and internal damage to your home. 

Does a Home Security System Lower Insurance Costs?

The short answer is yes! There are several home insurance companies that provide policyholders a discount on their monthly premium if they have home security installed. Here are a few to consider:

  • Hippo Insurance - New Hippo Insurance customers in select states who enroll in its smart home program will now be eligible to receive a professionally monitored home alarm system from SimpliSafe, provided completely complimentary with their homeowners’ policy. Eligible customers will also receive two free months of 24/7 interactive monitoring and a meaningful discount on their annual home insurance premium.

  • Branch Insurance - Branch members can receive meaningful discounts of up to 15.5% on their home insurance by protecting their home with a professionally monitored SimpliSafe system. Additionally, Branch is giving new members a free 7-piece home security system from SimpliSafe and a complimentary month of SimpliSafe’s most comprehensive professional security monitoring.

  • Selective Insurance - Selective's homeowner policyholders in approved states can request a complimentary 7-piece home security system from SimpliSafe. Policyholders who choose to receive a SimpliSafe security system and activate it with monitoring within sixty days of receipt will receive an automatic discount on their Selective insurance policy. 

There are plenty of other home insurance providers who offer similar discounts. Be sure to reach out to your insurance provider to understand their discount offers fully. 

Other Considerations for a Home Security System

Just because a home security system can help lower your home insurance rate doesn’t mean you should buy any old home security system out there. Instead, look for a reputable home security provider that offers technology that protects against some of the most common and costly home hazards, such as water, wind, fire and theft.

Generally, the insurance company will only give a discount on your premium if your security system checks off a number of boxes, for instance:

  • Does it come with professional monitoring?

  • Do you have deadbolts on the main entryways into the home? 

  • Do the alarms ring loud enough to alert the neighbors?

If you’re looking for a discount, it might be a good idea to ask your home insurer what security features qualify you for a discount, and how much that discount would be depending on what you have/don’t have included in your system. 

SimpliSafe offers equipment, monitoring, and other features that check all the above boxes -- from professional monitoring and smart locks to entry sensors and 105dB sirens -- so you can get that discount. Build your SimpliSafe system today!