How a Home Security System Can Reduce Your Home Insurance Costs

Cost-Effective Home Alarm Systems that can give you peace of mind.
February 19, 2017 Blog 0 Comment

Break-ins and burglaries are a serious problem across Australia. More than 200,000 burglaries are reportedacross the country each year. That works out to nearly three per minute, though the reality is that many of these intrusions take place at predictable times – such as on Fridays or during the month of October. Furthermore, homes that have been broken in to once are statistically more likely to be burgled again.

It’s not just property owners who are dismayed by the number of burglaries that take place here. Home insurers also have skin in the game, as they often end up footing the bill for at least a portion of these losses. That’s why many insurers are keen to see to it that the properties they cover are protected by strong security measures.

In light of these facts and statistics, some home insurance companies are willing to offer discounts on their clients’ monthly premiums if they invest in stronger security. In this post, we’re going to explore this phenomenon in more detail and offer insight into how you can leverage burglar alarm systems in Perth to reduce your insurance costs.

What’s in It for Insurers: Why Stronger Security Can Lead to Lower Premiums

Whenever a service provider offers you the same service you’ve been subscribing to for a lower rate, you have to wonder if they’re cutting back on the quality of their service. But this really isn’t the case with home insurers – at least not when it comes to alarm security systems in Perth.

It’s actually quite a straightforward line of thinking. When you equip your property with stronger security measures, the chance that it will be burglarised or severely damaged in a fire is significantly reduced. This, in turn, means that the home insurance provider is statistically less likely to cover the cost of losses under those circumstances.

The insurance business is very much a number’s game. Each major insurer has entire divisions of statisticians and analysts who develop algorithms through which they can assess and quantify risk. When their customers take extra measures to reduce the risk of loss, the insurer benefits as well. This is why many are more than happy to assign credits or discounts when you enhance your property’s security measures. You’re helping them save money, and they’re returning the favour in kind.

These Specific Security Measures May Lead to Lower Home Insurance Premiums

The specifics of what your home insurer is willing to reward you for will vary from one provider to the next – as well as by location. However, it’s safe to say that any of the following extra measures will qualify your property for a discount in the eyes of at least some insurers:

  • Stronger deadbolt locks
  • Fire detectors that are wired into central alarm security systems in Perth
  • Professionally monitored burglar alarm systems

Those are just a few examples, and it is always worth checking with your home insurer to see which measures they prefer. But in general, anything that deters a break-in (such as stronger locks or the visible presence of an alarm system) or enables faster response time (by notifying the authorities) could help bring your premiums down.

Home Insurers Prefer Coordinated Security Systems to One-Off Security Measures

We should note that not all security measures lead to lower premiums. For example, a local alarm that notifies occupants or neighbours that a break-in is underway has limited value in the eyes of an insurance company. But one that alerts the authorities that something is amiss – such as an unexpected entry – can help to minimise any losses that occur. This is exactly the type of preventative measure that insurance companies look fondly upon.

Likewise, consider the potential value added with security cameras. Simply equipping your property with CCTV cameras is not going to lead to much of a discount. The cameras may serve as a deterrent to vandals or even help the police identify and apprehend a burglar further down the road. But at this point, the damage has already been done. The insurer is going to have to cover these expenses.

But if your CCTV cameras work in conjunction with an alarm system that notifies the relevant authorities that an event is taking place, that’s another story altogether. If the property is being broken in to, the police will be notified and the CCTV live stream will help them ascertain the level of threat and respond accordingly.

To that end, a carefully planned and well-integrated security system is precisely what home insurer’s like to see. Installing one can see your premiums reduced by anywhere from 10 to 20 per cent, depending on the insurer.

Our Security Systems for Homes in Perth Provide More than Savings on Insurance

At Smart Security, we deal in some of the most advanced home security systems in Perth. The focus of our products is always on preventing break-ins, whilst enabling rapid response in the event that they do occur. And given the fact that many home insurers recognise our systems, the cost of installing one can often be at least partially recouped over time in reduced premiums.

But that is only one of many compelling reasons to install a state-of-the-art burglar alarm from Smart Security. In addition to lowering the cost of your home insurance, you’ll also gain serious peace of mind from the knowledge that your house is protected 24 hours a day, seven days a week. You and your loved ones can go on with your daily lives without having to worry if your house is going to become a statistic in this year’s round of burglaries.

You’ll find a range of security products here on our website that will boost the security of your home. In particular, pay a visit to our home alarms page, and be sure to check out the specifics of the 24-hour monitoring system offered by Smart Security. You’ll rest easier and could potentially enjoy lower premiums at the same time.