Installing a home security system doesn’t just protect your home; it can also help you save money on your homeowners or renters’ insurance policy. While most people install security systems for safety and peace of mind, the added financial benefit of insurance discounts can be a welcome bonus, potentially even making the system pay for itself. Here’s everything you need to know about how much you can save and how to get the maximum discount.
Insurance providers calculate your premium based on risk. Properties with a lower likelihood of burglary, fire, or water damage typically cost less to insure. A security system, especially one that includes monitoring, environmental sensors, and automation, reduces those risks.
Discounts vary depending on your insurer and the features your system includes. Here’s a general breakdown:
If your security system includes 24/7 monitoring, smoke/fire detection, and is professionally installed or certified, you’ll typically qualify for the highest discount tier.
To qualify for a discount, insurers usually require:
If you’re using a DIY system like Abode, most insurers will accept a PDF certificate showing activation and coverage. Any respectable system should have an easy way to get a certificate proving coverage.
Each company offers different rates and discount thresholds. State Farm, Allstate, USAA, and Liberty Mutual all offer home security incentives, but the exact percentage varies.
Homes in high-crime areas may benefit more from security-related discounts. On the other hand, homes in flood-prone zones may get deeper discounts from water leak detection.
Monitored DIY systems (like Abode) with smart home automation and environmental monitoring are often eligible for higher discounts than basic door alarms.
A monitored, self-installed security system may cost $200–$600 upfront, with ongoing monitoring fees ranging from $10 to $30/month. However, annual insurance discounts of $50–$150 or more can offset this cost, essentially making your system pay for itself over time.
And that doesn’t include the potential cost avoidance from avoiding a major incident. A single break-in can cost thousands. Fires or floods? Even more. A small monthly fee could save you from a massive loss (not to mention headache).
DIY security systems aren’t just for renters or tech enthusiasts—they’re smart financial tools, too. With professional-grade monitoring, integrations like Apple HomeKit, and smart sensors, systems like Abode qualify for meaningful insurance savings without expensive installation or long-term contracts.
