Based on a survey of U.S.’s 10 most popular insurance companies, the average home insurance discount is 20% for a home secured with an alarm system. The Rutgers University School of Criminal Justice conducted the study.
The ten top insurance companies were surveyed and found out that they give an average of 20% premium discount if the home is equipped with a security system according to the president of ESA or Electronic Security Association – Dom D’Ascoli. The discount is considerable enough to compensate the installation and the monitoring costs of the security system.
Most of the insurance companies give discounts because of the alarm system. The homeowner must check with their insurance company the availability of the discounts and the amount. Temple University, led by Dr. Simon Hakim held a study that shows that a single home with an alarm system is at least 60% less likely to experience burglars than a home with no security system.
A two-year study in New Jersey led by Rutgers University School of Criminal Justice shows the reason why insurance institutions are giving discounts. The comprehensive study used profound research to get rid of variables like crime rates thus focusing only on the impact of security system on residential intruders.
Modern technologies including security systems have become more versatile, dependable and affordable compared to before. These latest innovations increased the accessibility of alarm systems for residential use, including middle class families, thus reducing the crime rates.
Aside from discouraging burglars, security systems also reduce the occurrence of fires and fire damage. Claims involving fire and lightning are 10 times higher than burglars and theft claims according to Insurance Information Institute. The alarm system is able to inform the fire department if a resident is not at home. The key here is the ability of the alarm system to detect fires which helps save the home from further damage.