Home Security Insurance Discount: How Much Can You Save? (2026)
Last updated August 2026
Introduction
If you have a home security system or are considering installing one, you may be leaving money on the table. Many homeowners do not realize that their insurance company will actually reward them for protecting their property. A home security insurance discount can reduce your annual premium by anywhere from 5% to 20%, depending on your insurer, your location, and the type of system you install. For the average homeowner paying $1,400 per year in premiums, that translates to savings of $70 to $280 annually. Over a decade, those savings can offset a significant portion of your security equipment and monitoring costs. In this guide, we break down exactly how these discounts work, which insurers offer them, which security systems qualify, and the specific steps you need to take to claim your discount.
Why Do Insurance Companies Offer Security Discounts?
Insurance is fundamentally a risk-based business. When you reduce the likelihood of a claim, your insurer saves money, and they pass some of those savings back to you in the form of lower premiums. Homes with monitored security systems are significantly less likely to be burglarized. According to industry data, homes without security systems are up to 300% more likely to be targeted by burglars. Furthermore, monitored systems reduce the severity of losses when break-ins do occur, because rapid police response often means the intruder has less time to steal valuables or cause damage. Environmental sensors, such as smoke detectors and water leak sensors, also reduce the risk of costly fire and water damage claims. Insurance companies have run the numbers, and the math is clear: investing in home security is one of the most effective loss-prevention strategies available. That is why major carriers actively incentivize policyholders to install and maintain these systems.
How Much Can You Save? Average Discount Breakdown
The average home security insurance discount ranges from 5% to 20% of your annual premium, though the exact amount varies widely. For a basic alarm system without professional monitoring, you might see a modest 5% discount. For a professionally monitored system with central station reporting, discounts typically fall in the 10% to 15% range. For the most advanced systems, including those with monitored fire, carbon monoxide, and water leak detection, some insurers offer premium reductions of up to 20%. Let us put this in concrete terms. If your annual homeowners insurance premium is $1,500, a 10% discount saves you $150 per year, or $12.50 per month. If you are paying $29.99 per month for professional monitoring from a provider like Cove or SimpliSafe, that discount effectively covers about 42% of your monitoring bill. Over five years, the cumulative savings amount to $750, which is often enough to cover the entire cost of a basic security system. It is important to note that these discounts typically apply to the dwelling and personal property portions of your policy, not to liability coverage.
Which Insurance Companies Offer Security Discounts?
Most major U.S. homeowners insurance providers offer some form of security system discount. However, the specifics, qualifying criteria, and discount percentages vary by carrier and sometimes by state. Always confirm details directly with your agent or policy documents.
State Farm
State Farm, the largest home insurer in the United States, offers premium discounts for homes equipped with qualifying security and fire protection devices. The exact discount percentage varies by state and policy, but policyholders typically see reductions in the 5% to 15% range. State Farm recognizes a wide variety of security measures, from basic smoke detectors to fully monitored alarm systems. To qualify, you generally need to provide proof of installation and, for monitored systems, a certificate of monitoring from your security provider. State Farm also offers additional savings for homes with fire sprinklers, deadbolt locks, and certain types of construction materials. If you bundle your security discount with other available discounts, such as multi-policy or claims-free savings, the total reduction can be substantial.
Allstate
Allstate provides a Home Security Discount for policyholders who install qualifying protective devices. The discount applies to both the property and theft portions of your policy. Allstate typically requires that the system be monitored by a central station to qualify for the highest tier of savings, though unmonitored systems may still earn a smaller discount. In addition to the security system discount, Allstate offers a Protective Device Discount that covers smoke detectors, fire alarms, and sprinkler systems. Combining these discounts can lead to significant savings. Allstate also has a unique Claim-Free Bonus that rewards policyholders who go without claims, and having a security system makes maintaining that claim-free status considerably easier. Contact your Allstate agent to verify which specific devices qualify under your policy and in your state.
Liberty Mutual
Liberty Mutual offers discounts for homes with protective devices, including burglar alarms, fire alarms, and monitored security systems. The discount structure is tiered based on the level of protection. Basic local alarm systems may qualify for a small discount, while centrally monitored systems with fire and theft monitoring typically earn the maximum available reduction. Liberty Mutual also participates in various smart home and IoT device partnerships, and in some cases, policyholders who install qualifying smart home devices, such as smart water shutoff valves or connected smoke detectors, may receive additional savings. The exact discount percentage varies by state, as insurance regulation is handled at the state level. Liberty Mutual policyholders should contact their agent to get a precise quote with and without the security discount applied.
Other Major Insurers
Beyond the big three, most national and regional insurers offer similar discounts. Progressive, Farmers, Nationwide, Travelers, and USAA all have programs that reward homeowners for installing security systems. USAA, which serves military members and their families, is particularly proactive about home security and often offers competitive discounts. Regional insurers and mutual insurance companies may also provide security discounts, sometimes at rates that exceed those of national carriers. It is worth getting quotes from multiple insurers and asking specifically about security-related discounts when shopping for coverage. Some insurers may not advertise these discounts prominently, but they will apply them if you ask and provide the necessary documentation.
Which Security Systems Qualify for Insurance Discounts?
In general, any professionally monitored security system will qualify for an insurance discount from most carriers. The key word is monitored. Insurance companies want confirmation that if your alarm triggers, a professional monitoring center will respond and dispatch emergency services. DIY systems that rely solely on self-monitoring, such as those that send alerts only to your phone, typically do not qualify for premium discounts because there is no guarantee of a rapid response if you are unavailable.
Professionally Monitored Systems
Virtually all professionally monitored systems qualify for insurance discounts. This includes systems from ADT, SimpliSafe, Vivint, Ring with Ring AI Pro monitoring, Cove, Frontpoint, Abode with Pro monitoring, and Arlo with Secure Premium. The monitoring plan must include 24/7 central station monitoring, not just self-monitoring with optional cloud storage. The system should also have cellular backup, so it remains operational during internet or power outages. Insurers view cellular backup as a critical reliability feature because it ensures continuous protection. Systems with environmental monitoring, including smoke, carbon monoxide, and water leak detection, often qualify for larger discounts because they protect against multiple types of claims.
ADT’s Insurance Partnerships
ADT has a particularly strong relationship with the insurance industry due to its 150-year history and six redundant monitoring centers. Many insurers specifically list ADT as a preferred or recognized provider. ADT policyholders often find it easier to obtain and maximize their insurance discounts because ADT has streamlined processes for generating monitoring certificates and directly communicates with insurance underwriters. ADT also offers insurance-friendly features such as rapid video verification, which reduces false alarms and ensures faster police response. If maximizing your insurance discount is a priority, ADT is a strong choice, though it comes with higher monitoring costs starting at $49.99 per month for professionally installed systems and $34.99 per month for ADT Blu DIY systems.
Self-Monitored and DIY Systems
Self-monitored systems, including Eufy (without a monitoring plan), Abode on the free tier, and Wyze without Noonlight monitoring, generally do not qualify for insurance discounts. The reason is simple: if you are on vacation, asleep, or simply away from your phone when an alert comes in, there is no one to respond. However, some insurers are beginning to recognize advanced DIY systems that include professional monitoring as an optional add-on. If you have a Ring Alarm and subscribe to Ring AI Pro at $19.99 per month, for example, you likely qualify for a discount even though the system is DIY-installed. Similarly, Abode’s Pro plan at $26.99 per month includes professional monitoring and should qualify. The key is the presence of 24/7 professional monitoring, not how the system was installed.
How to Apply for Your Security Insurance Discount
Claiming your home security insurance discount is a straightforward process, but it does require some documentation and proactive communication with your insurer. Follow these steps to ensure you receive the full discount you are entitled to.
Step 1: Contact Your Insurance Agent
Start by calling your insurance agent or customer service line and asking about available protective device discounts. Ask specifically about the discount for centrally monitored burglar and fire alarm systems, as this is often a separate discount from basic smoke detector credits. Request the exact percentage discount and any documentation requirements. Some insurers may have specific forms that need to be completed.
Step 2: Request a Certificate of Monitoring
A certificate of monitoring, sometimes called an alarm monitoring certificate or insurance discount certificate, is the standard document insurers require. This certificate is issued by your security provider and confirms that your system is professionally monitored, includes the types of monitoring (burglary, fire, etc.), and lists the monitoring center’s contact information. Most major security providers can generate this certificate through their customer portal or by calling customer service. ADT, SimpliSafe, Vivint, Ring, Cove, and Frontpoint all offer this service. The certificate is typically provided as a PDF that you can email to your agent. Some providers charge a small fee, usually $5 to $10, while others provide it for free.
Step 3: Submit Documentation
Send the certificate of monitoring to your insurance agent along with any required forms. Some insurers may also want a copy of your monitoring agreement or a receipt showing that your monitoring subscription is active. Keep copies of everything you submit. After submission, confirm with your agent that the discount has been applied to your policy and ask for a revised declaration page showing the reduced premium.
Step 4: Verify the Discount on Your Policy
Once the discount is applied, review your next billing statement or policy renewal documents to confirm the reduction has taken effect. The discount should appear as a line item, typically labeled as Protective Device Credit, Security System Discount, or Alarm Discount. If you do not see the reduction, follow up with your agent immediately. It is also a good idea to set a reminder to resubmit your certificate annually, as some insurers require updated documentation at each renewal.
Step 5: Reapply at Renewal if Needed
Insurance discounts for security systems are typically ongoing as long as your monitoring service remains active. However, some insurers require proof of continued monitoring at each policy renewal period, which is usually annually. Mark your calendar to request an updated certificate from your security provider a few weeks before your policy renews. If you switch security providers or monitoring plans, notify your insurer promptly to ensure continued eligibility.
Maximizing Your Insurance Savings
The security system discount is just one of many ways to reduce your homeowners insurance premium. To maximize your total savings, consider bundling your security discount with other available credits. Multi-policy discounts, which apply when you combine home and auto insurance with the same carrier, can save you 10% to 25% on both policies. Claims-free discounts reward policyholders who go several years without filing a claim, and having a security system makes maintaining that status much easier. Some insurers offer additional discounts for impact-resistant roofs, newer homes, gated communities, and proximity to fire stations. If your security system includes monitored environmental sensors, such as water leak detectors or low-temperature sensors, ask your insurer if there are separate discounts for those devices. A comprehensive approach to loss prevention can add up to hundreds of dollars in annual savings.
Common Mistakes to Avoid
Many homeowners who have security systems fail to claim their discount simply because they do not know it exists. Do not make that mistake. Another common error is letting monitoring lapse. If you cancel your monitoring service, you must notify your insurer, and your discount will be removed. Failing to do so could be considered misrepresentation. Some homeowners also assume that any security camera or smart doorbell qualifies for a discount. While these devices improve your security, they typically do not qualify for premium reductions unless they are part of a professionally monitored system. Finally, do not assume the discount is automatic. You must proactively request it and provide the required documentation. Your insurer is not going to chase you down to give you a lower premium.
Is the Discount Worth the Cost of Monitoring?
One of the most common questions homeowners ask is whether paying for professional monitoring is worth it after accounting for the insurance discount. The answer depends on your specific situation, but for most homeowners, the math works out favorably. Let us consider a typical scenario. You pay $29.99 per month for Cove Plus monitoring with environmental sensors, which totals about $360 per year. Your insurance discount is 10% on a $1,500 annual premium, saving you $150 per year. Your net monitoring cost is $210 per year, or $17.50 per month. For less than the cost of a monthly streaming service subscription, you get 24/7 professional monitoring, emergency dispatch, and peace of mind. When you also factor in the reduced risk of burglary and property damage, professional monitoring is one of the best investments you can make in your home’s safety. For budget-conscious buyers, Ring AI Pro at $19.99 per month offers the lowest-cost professional monitoring that still qualifies for insurance discounts, while ADT’s premium service at $49.99 per month may justify its higher price through larger discounts and superior monitoring infrastructure.
Conclusion
A home security insurance discount is one of the most underutilized benefits available to homeowners. With savings ranging from 5% to 20% on your annual premium, the discount can significantly offset the cost of professional monitoring. Most major insurers, including State Farm, Allstate, and Liberty Mutual, offer these discounts for professionally monitored systems. The application process is simple: install a qualifying system, request a certificate of monitoring, and submit it to your agent. If you already have a monitored security system and have not claimed your discount, contact your insurer today. If you are shopping for a system, factor the insurance savings into your total cost of ownership calculation. Over the life of your policy, the cumulative savings can add up to thousands of dollars, making your home security investment even more valuable.