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Average Insurance Discount for Home Security Is 20%

Data reveals that monitored fire detection portion of home security system is key, since fire and lightning claims are almost 10 times higher than claims for burglaries.


Jason Knott · February 24, 2011

According to a survey of the nation’s 10 largest insurance companies, the average premium discount for a home equipped with an alarm system is 20 percent.

The study was conducted by the Rutgers University School of Criminal Justice and provides a compelling benefit that can aid CE pros who are selling security systems.

“A survey of the 10 largest insurance companies offering homeowners coverage found premium discounts up to 20 percent if a home is equipped with a monitored alarm system,” says Dom D’Ascoli, president of the Electronic Security Association (ESA). “The discounts can be substantial enough to pay a portion of the monitoring costs or installation of the system.”

“The majority of insurance companies offer discounts for alarm systems,” says Michael Barry, spokesperson for the Insurance Information Institute. “Homeowners should check with their individual carrier to determine the amount and availability of the discounts.”

According to a study by Dr. Simon Hakim of Temple University, “An alarmed single family home is more than 60 percent less likely to be burgled than a similar home without an alarm.”

A comprehensive two-year study in Newark, New Jersey by Rutgers University School of Criminal Justice, demonstrates why insurance companies are offering the discounts. Described as the most comprehensive study of its kind, the team of Rutgers researchers used sophisticated in-depth research techniques to eliminate the variables that impact crime rates and to focus solely on the impact alarm systems have on residential burglaries.

“Thanks to modern technology alarm systems are more affordable, versatile and dependable than ever before,” says D’Ascoli. “The Rutgers study showed that these technical innovations have increased the availability of home security systems to middle class homeowners and helped reduce crime.”

In addition to discouraging burglars, modern alarm systems also reduce the damage caused by fires. Fire and lightning claims are almost 10 times higher than claims for burglaries and thefts according to statistics from the Insurance Information Institute.

“The alarm’s ability to notify the fire department whether or not anyone is at home or able to call for help is vital in reducing the cost of these claims and protecting building occupants,” said D’Ascoli.



  About the Author

Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at [email protected]

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