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How Home Security Systems Affect Homeowner’s Insurance

Personal Lines

Home security systems provide you with peace of mind, but they also can lower the cost of your homeowner’s insurance.

Installing a home security system is a great way to feel protected, not only from theft and burglary but also fire and water damage. These precautions translate into protection from several types of homeowner’s claims, and prove to carriers that you are putting the right processes in place to protect yourself (and, subsequently, them) from exposures.

Some carriers will reward you for your efforts by providing a discount on your homeowner’s insurance. The discount may vary based on the type of system you installed, so do your research before making a decision on a vendor.

Central Security Systems

  • Example: ADT
  • Provide the highest level of protection
  • Monitored by a service that sends alerts to your local police or fire department
  • Monitors for intrusion, fire, flood, and/or carbon monoxide
  • Typically installed by a service provider
  • Can also be monitored by your smart device
  • Provides the most significant discount

Self-Monitored Security Systems

  • Examples: Nest, Simplisafe
  • Sends alerts to your smart phone or email
  • Monitors for fire, theft, and/or carbon monoxide
  • Typically self-installed
  • Most commonly-used systems
  • Accessed from your smart phone

In addition to providing a discount on your homeowner’s insurance, security systems can have several additional advantages:

  • Visual indicators that you have a security system can deter criminal activity. Utilize signs and stickers provided by your vendor to make it clear that your home is monitored.
  • Security systems protect your valuables beyond basic security.
  • You can view your home from your smart device, which is helpful when you are away on business trips or for vacation.
  • Security systems provide peace of mind, reducing stress and worry about your home and families safety.

Reach out to your M3 Private Client Group Account Executive to discuss your options, and for help determining which system makes sense for your current assets.


Amanda Harness, PLCS, CISR is a private client account manager at M3.

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