Can a security system lower your homeowners insurance?
The short answer is yes.
Many homeowners throughout Bakersfield and Kern County qualify for a discount on their homeowners insurance after installing a professionally monitored security system. Depending on your insurance carrier and the level of protection you choose, discounts commonly range from 5% to 20%.
A monitored security system does more than help protect your home from burglary, fire, and emergencies. It also reduces the level of risk for your insurance company, which is why many carriers reward homeowners with lower premiums.
At Secure Systems, we’ve helped homeowners throughout Central California choose security solutions that not only improve their home’s protection but also help them qualify for available insurance discounts. Here’s what you should know before purchasing a system.
What qualifies as a security system for homeowners insurance?
Not every security device qualifies for an insurance discount.
Most insurance companies are looking for professionally monitored systems that can quickly notify emergency responders if something happens.
Features that insurers commonly look for include:
- 24/7 Professional Monitoring – Your system is monitored around the clock by a professional monitoring center that can dispatch police or fire personnel when needed.
- Intrusion Protection – Door sensors, window sensors, motion detectors, and alarm monitoring.
- Monitored Fire Protection – Smoke or heat detectors connected directly to the monitoring center rather than standalone alarms.
- UL-Listed Monitoring Center – Many insurance carriers prefer or require monitoring through a UL-listed central station.
- Water Leak Detection (Optional) – Water sensors can help detect leaks before they become costly insurance claims and may qualify for additional savings with some insurers.
A self-monitored system that only sends alerts to your smartphone may provide some protection, but it generally won’t qualify for the same discounts as professionally monitored security.
How much can a security system reduce homeowners insurance?
Every insurance company has its own discount structure, but these are typical ranges homeowners see:
- Self-monitored or local alarm systems: 2%–5%
- Professionally monitored burglary systems: 5%–15%
- Professionally monitored burglary and fire systems: Up to 15%–20%
For example:
If your annual homeowners insurance premium is $2,000:
- A 10% discount saves $200 every year
- A 15% discount saves $300 every year
- A 20% discount saves $400 every year
Those savings continue year after year while your monitored system remains active.
If you’re unsure whether you’re already receiving an alarm discount, check your insurance declarations page or ask your insurance agent.
What is the most affordable monitored security system for insurance?
The best value isn’t necessarily the largest system.
If your primary goal is qualifying for an insurance discount, you can often accomplish that with a basic professionally monitored security package.
A typical entry-level insurance system includes:
- Security control panel
- Front and back door sensors
- Motion detector
- Monitored smoke detector
- 24/7 professional monitoring
Many homeowners are surprised to learn they don’t need cameras throughout the entire home to qualify for insurance savings.
The key is having a professionally monitored system that can notify emergency responders if there’s a burglary or fire.
Can I install a minimal system just for insurance purposes?
Absolutely.
Many homeowners simply want enough protection to satisfy their insurance company’s requirements while keeping costs reasonable.
Here’s how the process typically works:
- Schedule a free consultation with Secure Systems.
- Choose a professionally monitored security package.
- Have the system professionally installed.
- Receive your Alarm Certificate or Certificate of Monitoring.
- Send the certificate to your insurance company.
That’s usually all that’s required to begin receiving your insurance discount.
What is an alarm certificate?
After your monitored security system is installed, your alarm company can provide documentation verifying that your home is professionally monitored.
Insurance companies often call this an:
- Alarm Certificate
- Certificate of Monitoring
- Certificate of Installation
This document typically confirms:
- Professional 24/7 monitoring
- Burglary protection
- Fire monitoring (when applicable)
- Monitoring center information
Your insurance company uses this certificate to verify your eligibility for available discounts.
If your insurance carrier requests additional documentation, Secure Systems can help provide whatever information they require.
Why monitored fire protection matters
Many insurance companies place significant value on monitored fire protection because fire claims are often among the most expensive claims they pay.
Unlike a standalone smoke detector that only sounds an alarm inside your home, monitored smoke detectors notify the monitoring center immediately—even if you’re away from home.
This allows emergency responders to be dispatched as quickly as possible, helping reduce potential property damage.
Many homeowners also choose to add water leak sensors, which can help detect plumbing leaks before they become major insurance claims.
Do insurance companies require a specific alarm company?
Usually not.
One of the biggest misconceptions is that homeowners must purchase security from an insurance company’s “approved vendor.”
In reality, most insurance companies simply require that your system meets their monitoring requirements.
Generally, they want to see:
- Professional 24/7 monitoring
- Burglary protection
- Fire monitoring (if required)
- Documentation verifying the system is monitored
The company name on your security panel is usually much less important than the features your system provides.
If you’re unsure what your insurance company requires, simply ask your agent:
- “Do you offer a monitored alarm discount?”
- “What features are required?”
- “Will you accept a standard alarm certificate?”
Most carriers are happy to explain exactly what qualifies.
Ready to learn how much you could save?
Whether you’re purchasing a new home, upgrading an older alarm system, or simply looking to reduce your homeowners insurance costs, Secure Systems can help you choose a professionally monitored security system that protects your family while helping you qualify for available insurance discounts.
Contact Secure Systems today for a free consultation and we’ll help you determine which security package best fits your home, your budget, and your insurance requirements.
