Security system discount programs can save homeowners 5% to 20% on annual insurance premiums. That translates to roughly $60 to $360 per year. Savings depend on your policy and the type of system you install. According to the Table of Contents
org/article/12-ways-to-lower-your-homeowners-insurance-costs”>Insurance Information Institute, smoke detectors and deadbolt locks alone earn at least a 5% reduction. However, the biggest savings come from professionally monitored alarm systems. A security system discount rewards homeowners who actively protect their property. Insurers view these homes as lower risk for theft and fire damage. As a result, they charge less for coverage. Understanding how to qualify for a security system discount can put real money back in your pocket each year.
How the Security System Discount Works
Insurance companies calculate premiums based on risk. A home with a monitored alarm is less likely to suffer a break-in or fire loss. For example, a UNC Charlotte study surveyed 422 incarcerated burglars. It found that 60% would seek a different target if an alarm was present. Another 83% said they check for alarms before attempting a burglary. Burglary rates have dropped 69% since 2005, partly due to wider security adoption. In most cases, insurers offer the security system discount as a percentage off your annual premium.
The discount amount depends on your system type. Basic devices like smoke detectors and deadbolt locks typically earn 2% to 5% off. However, a burglar and fire alarm connected to a central monitoring station can unlock 15% to 20% savings. The National Association of Insurance Commissioners recommends asking your insurer about qualifying devices before you buy. Sprinkler systems combined with monitored alarms earn the highest credits.
Professionally monitored systems earn the highest discounts from nearly every insurer. These systems connect to a 24/7 central station that dispatches police or fire services. Self-monitored or unmonitored setups typically receive smaller credits. Some insurers offer no discount at all without professional monitoring. As a result, the monitoring type you choose directly affects your savings.
What Major Insurers Offer
Discount amounts vary widely between insurance companies and states. State regulations play a significant role in determining available credits. However, most major carriers offer some form of security system discount for qualifying alarm systems. The table below shows what several large insurers currently provide.
| Insurer | Typical Discount | Key Details |
|---|---|---|
| Farmers | 5% to 20% | Higher discounts with professional monitoring |
| Nationwide | Up to 10% | Smart device discounts available in 38 states |
| USAA | Up to 8% | Requires two or more connected smart devices |
| The Hartford | 5% to 10% | Applies to burglar alarm systems |
| Allstate | Around 5% | Premium service plan discount |
| Chubb | Up to 30% | Comprehensive security system installations |
As the table shows, discounts range from 5% to as high as 30%. In most cases, higher percentages require a comprehensive professionally monitored system. Some insurers tie their security system discount amounts to specific state regulations. As a result, your savings depend heavily on where you live.
Smart home devices are also gaining traction with insurers. For example, USAA’s Connected Home program pairs smart devices with insurance credits. Nationwide offers free water leak detectors in 38 states to policyholders. Water leak detectors prevent costly flood claims, making them attractive to insurers. These programs show that the security system discount is expanding well beyond traditional alarm panels. Devices like smart water shutoff valves and temperature sensors now qualify at select carriers.
How to Qualify for a Security System Discount
Qualifying for a security system discount is straightforward. First, install a system that your insurer recognizes. Professionally installed systems with 24/7 monitoring earn the largest credits. However, many DIY systems now qualify if they include central station monitoring. Popular options start at around $18 per month for professional monitoring service. Check with your agent for a list of approved systems in your state.
Next, obtain a central station monitoring certificate from your security provider. This document proves your system is active and monitored around the clock. It confirms the station can dispatch emergency services on your behalf. Most providers can generate this certificate through their online portal or app. Send it to your insurance agent or upload it through your insurer’s website. The security system discount is typically applied at your next policy renewal. Some insurers adjust your rate mid-term as well.
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Finally, compare the cost of monitoring against your potential savings. Professional monitoring runs $20 to $65 per month, or $240 to $780 per year. For a $1,800 annual premium, a 15% discount saves you $270 annually. In that case, the discount covers much of your monitoring cost. However, the combined value of lower premiums and burglary deterrence makes it worthwhile. According to FBI crime data, there were over 405,000 residential burglaries in 2024. A monitored system remains one of the most effective deterrents available today.
Frequently Asked Questions
How much does a security system discount save on homeowners insurance?
In most cases, homeowners save between 5% and 20% on their annual premium. The exact amount depends on your insurer, state, and system type. A comprehensive monitored system earns the highest credit. For example, a $1,800 premium with a 10% security system discount saves $180 per year.
Do I need professional monitoring to get a discount?
Typically, yes. Most insurers require 24/7 professional monitoring to offer the full security system discount. However, some carriers provide a smaller credit for self-monitored systems. Always check with your insurance company before purchasing equipment.
What types of security devices qualify for insurance discounts?
Qualifying devices typically include burglar alarms, fire alarms, smoke detectors, deadbolt locks, and sprinkler systems. Smart home devices like water leak sensors and connected cameras may also qualify at certain carriers. As a result, ask your insurer for a complete list of eligible devices before you invest in any equipment.
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Official Sources & Resources
For verified information on home insurance regulations and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- FEMA (Federal Emergency Management Agency): fema.gov
- FloodSmart (National Flood Insurance Program): floodsmart.gov
- USA.gov — Housing: usa.gov/housing
Content last reviewed May 2026. If you notice any outdated information, please contact us.