How security cameras can lower your home insurance premiums?
Security camera installation entails a lot of benefits to homeowners, and crime deterrence and peace of mind are always the first to be named. However, there is another aspect which makes them a bit concerned; it is an opportunity to save on insurance premiums.
Now, let’s see if it is possible to pay less for insurance if CCTV is installed and unveil some facts and conditions which can help you make your home protection more budget-friendly. In fact, the majority of homeowners may get some discounts provided that they have enough knowledge to handle the process.
Why do home insurance companies reduce premiums if CCTV security cameras are installed?
According to statistics, homes which are not secured by video surveillance or alarm systems are 300% more likely to be under the risk of burglary, vandalism, or any other crime. If an incident occurs, an insurer has to compensate the damage in compliance with agreement, and the payouts may be considerable.
Besides, insurance providers regularly face attempts of fraud on behalf of consumers who imitate slip-and-fall accidents. Here, average payouts reached $22,000 in 2023, so companies may lose a lot of money on fall scams.
In this case, security camera installation becomes a basis for beneficial cooperation between insurer and homeowner. The first gets fewer claims thanks to crime deterrence while the second can count on more affordable premiums. And yes, insurance companies are more willing to provide them while the risks are reduced.
Do Homeowners always get their insurance premiums cut via CCTV?
Indeed, insurance companies never provide discounts unconditionally. Premiums can be lowered or not depending on a number of factors, such as insurer’s policy, type of video surveillance system, and even its capabilities.
As a rule, companies insist that security cameras should be connected to a central alarm station which provides round-the-clock professional monitoring. In case of emergency, this connection provides a quick response, and the damage to the homeowner’s property may be mitigated. Besides, insurers feel more confident, as indemnification is usually smaller in this case; that is why they are more eager to provide discounts.
Another popular requirement is installation of fire and smoke protection systems and burglar alarms. If it is also met, a company can provide an insurance discount. Besides, such extra factors as crime rate in your neighborhood, distance between your property and first responders and fire hydrants, and claim record in the area are considered. However, it doesn’t mean you can get it from any company, as the policy of insurers varies.
That is why experts recommend to check if your insurance provider can cut your premiums if you install a home security system and if yes, what are the terms and conditions of the discount.
How much can a homeowner save on insurance with security cameras installed?
In fact, each insurance company sets its own offer, so the discount varies. As experts assume, it may start at 5% and reach 20% if a homeowner meets certain requirements.
Thus, State Farm Insurance, an American group of mutual insurance companies, offers up to 15% if a customer installs a video surveillance system linked to central monitoring and activates notifications of emergency staff. However, if only homeowner notification is added as an option, the discount is just up to 7%. If there is no central monitoring at all, no benefits would be offered. The other companies may provide their own terms, and you may find them even more lucrative.
The most reasonable solution in this case is to explore and compare insurance quotes from several companies. Study all conditions and pitfalls to define the most attractive and budget-friendly one.
Claiming for a security camera discount: step-by-step guide
Reducing home insurance costs after security camera installation may include several steps. Here is a short instruction for you to outline your way:
- Contact your policy provider, inform them of video surveillance and ask if it is possible to get a discount.
- Be ready to provide facts which prove that the cameras are installed; it may be an owners’ manual, a bill of sale, and even a special certificate.
- Wait till an audit department forms and sends a quote to you; they need a few days to decide if you can be qualified for a discount or not.
If the answer is yes, you will sign a new agreement where a reduced insurance premium is confirmed. Still, don’t be upset if the answer is no; a security system installed will give you crime prevention which is more valuable than any reimbursement.
Still, if a crime has occurred, and your home was burglarized, you will need to file insurance claims and the managers will inspect your property to find out if your insurance policy covers the type of damage inflicted.
Conclusion
Up-to-date video surveillance systems are a good tool for homeowners who would like to make more affordable insurance. Many companies make steps forward; the safer the home and the more options are added, the more are the chances that your policy costs will be cut considerably.
Still, don’t be upset if your company has no discounts for you. Security cameras are made to make your home safer and let you feel more confident; and it is not a matter of money-saving. Both your CCTV and your insurance policy must be reliable and cover your needs, and it is the most reasonable investment, no matter how much you spend on it.