Short answer: yes, a home security system can lower your homeowners insurance — typically between 5% and 20%. But if you’re expecting a big check just for buying a Ring camera, you’re going to be disappointed. The discount depends on what you have, how it’s monitored, and whether you actually tell your insurer about it.
I’ve talked to dozens of homeowners who installed SimpliSafe, forgot to notify their insurer, and paid full premium for two years. The discount doesn’t apply automatically. You have to ask for it.
How Much Can You Actually Save?
The discount range is real but wide. Here’s roughly what to expect based on what you have:
| Security Setup | Typical Discount |
|---|---|
| Basic alarm (local siren only, no monitoring) | 2–5% |
| Professionally monitored alarm system | 5–15% |
| Central station monitoring with fire/smoke/CO detection | 10–20% |
| Smart home system with 24/7 monitoring and multiple sensors | 15–20% |
| Video doorbell camera only | 0–3% (varies widely by insurer) |
These numbers come from industry averages across major carriers. Your specific discount depends on your insurer, your location, and the system you have. A professionally monitored system from ADT or SimpliSafe will generally earn you the highest discount because the insurer knows someone is actually responding when an alarm triggers.
Why Monitoring Status Is the Key Variable
Insurance companies aren’t discounting your premium because you have a camera pointed at your front door. They’re discounting it because a monitored system reduces the probability of a claim — and the severity of the claim when one does happen.
A monitored alarm means a central station calls the police when your alarm goes off, even if you don’t answer your phone. That response time matters. According to FBI crime data, the average residential burglary takes about 8 to 10 minutes. A professional monitoring response can cut that short, which directly reduces what gets stolen and what gets damaged.
An unmonitored system — just a local siren — is better than nothing, but it’s a deterrent, not a response mechanism. The alarm goes off, nobody’s coming unless a neighbor calls 911. Insurers know this, and their discounts reflect it.
Which Systems Qualify for the Biggest Discounts?
Most major insurers require UL-listed central station monitoring for their top-tier discounts. The systems that consistently qualify:
- ADT: The gold standard for insurer recognition. ADT’s UL-listed monitoring is accepted by virtually every major carrier. The premium is higher than DIY options, but the discount is typically the largest.
- SimpliSafe: Their professional monitoring plan ($18–$28/month) uses a UL-listed central station. Most major insurers accept SimpliSafe for the full security discount.
- Vivint: Professional-grade equipment with 24/7 monitoring. Good insurer recognition, but requires a contract and professional installation.
- Ring Alarm with Ring Protect Pro: Ring’s $20/month plan includes 24/7 professional monitoring. Insurer acceptance is growing but not as universal as ADT or SimpliSafe yet.
Self-monitored systems — where you get a phone notification and handle it yourself — typically qualify for smaller discounts or none at all. Check with your specific insurer before assuming.
How to Actually Get the Discount (Most People Miss This)
Installing the system is step one. Getting the discount is step two, and it requires action on your part.
Call your insurer and tell them you’ve installed a monitored home security system. They will ask for:
- The name of the monitoring company
- Proof of monitoring service (a copy of your monitoring agreement or a confirmation letter from the company)
- Sometimes: a UL certificate or proof that the central station is UL-listed
Your monitoring company can provide all of this. SimpliSafe, ADT, and Vivint all have documented processes for generating insurance discount letters — ask their customer service directly.
The discount usually applies at your next renewal, but some insurers will apply a prorated discount mid-policy. Ask specifically: “Can you apply this discount now, or does it start at renewal?”
Other Security Upgrades That Can Lower Your Premium
Burglar alarms get the most attention, but insurers also discount for:
- Smoke and CO detectors (monitored): Fire coverage is a significant part of your homeowners premium. A monitored smoke detection system — not just stand-alone detectors — can reduce your fire risk category.
- Water leak detectors: Water damage is the #1 cause of homeowners claims by volume. Some insurers (particularly Chubb and Travelers) offer meaningful discounts for leak detection systems like Moen Flo or Phyn.
- Deadbolts on all exterior doors: Some insurers explicitly ask about this on their applications. The discount is small, but it’s there.
- Gated community or 24/7 security guard: If you live somewhere with this, make sure your insurer knows.
The Realistic Math on ROI
Let’s say your homeowners premium is $1,500/year and you get a 10% discount: that’s $150/year saved. SimpliSafe’s monitoring plan runs $216–336/year depending on tier. So the insurance discount alone doesn’t cover the monitoring cost.
But that’s not the right way to frame it. The monitoring isn’t just for insurance savings — it’s because you actually want someone to respond when your alarm goes off. The insurance discount is a partial offset, not the justification.
Where the math gets more interesting: the discount compounds with other factors. New home construction discount + security system discount + claims-free discount can stack into 20–30% off your base premium. If you’re in a higher-premium area (coastal, wildfire risk zone, etc.), those percentages apply to a bigger number.
Bottom Line
Yes, a professionally monitored security system will lower your homeowners insurance. Budget for 5–15% off your annual premium if you have a recognized monitoring service and you tell your insurer about it.
The two things people consistently get wrong: they install a system but don’t notify their insurer, and they assume any camera or device qualifies. It doesn’t. The discount is tied to professional monitoring, not hardware alone.
If you’re still deciding on a system, our guide to the best DIY home security systems covers which systems are easiest to self-install and still earn insurer recognition. And if you’re specifically weighing subscription cost vs. upfront savings, there are no-monthly-fee options worth considering — though those typically earn smaller insurance discounts.
How to Actually Get the Discount
The most common reason homeowners miss this discount: they never tell their insurer about the system. Insurance companies do not automatically know you installed SimpliSafe last March. You have to call or submit documentation.
Here is the process:
- Contact your insurance agent or carrier directly. Ask specifically about alarm or security system discounts. Do not assume the call center rep will volunteer this — ask by name.
- Get your monitoring certificate. Most professional monitoring companies (ADT, SimpliSafe, Brinks) issue a UL Certificate of Central Station Monitoring. This is the document your insurer needs. Request it from your monitoring provider’s app or customer portal.
- Submit and ask when the discount applies. Some carriers apply it at renewal. Others adjust mid-policy. Clarify which.
If you self-installed a system and use third-party monitoring, ask whether your carrier accepts it. Some do. Others require monitoring through recognized providers only.
Does Homeowners Insurance Cover Theft Without a Security System?
Yes. Standard homeowners policies cover theft of personal property regardless of whether you have a security system. The security system discount reduces what you pay in premiums — it does not affect your coverage. Skipping a security system will not void your coverage or reduce your claim payout. It will just mean you are paying more for the same coverage than you need to.
Frequently Asked Questions
Does a Ring camera lower homeowners insurance?
Usually not significantly on its own. A standalone camera without professional monitoring earns minimal discount — typically 0–3% — because it does not provide emergency response. Connecting Ring devices to a Ring Alarm with professional monitoring changes this, as the monitoring plan earns the full category discount.
How much does a monitored security system save per year?
On a $1,500/year homeowners policy, a 10% discount saves $150/year. At 15%, that is $225/year — which meaningfully offsets the cost of SimpliSafe’s $29.99/month monitoring plan ($360/year). The math almost works out. Factor in the security benefit and it usually tips in favor of monitoring.
Do I need to re-notify my insurer if I switch security systems?
Yes. If you cancel ADT and switch to SimpliSafe, your insurer’s file still shows ADT monitoring. Notify them of the change, submit new documentation for the replacement system, and confirm the discount still applies. Carriers sometimes cancel the discount when they learn the original system was discontinued without notification. It is a short phone call that protects a discount you are already earning.
Will adding a security system lower my insurance immediately?
Typically no — most carriers apply discounts at the next renewal date, though some adjust mid-policy when you submit documentation. Ask your carrier explicitly when the discount takes effect. If your renewal is more than six months away, it is worth asking about a mid-term endorsement. The paperwork is minimal and the savings start sooner. Keep a copy of your monitoring certificate on file — carriers occasionally request re-verification during policy reviews, and having it ready speeds the process.