There are usually two alarm systems that qualify you for home insurance discounts from most carriers:
- A centrally monitored fire alarm
- A centrally monitored burglar alarm
In order for a home’s alarm system to be considered centrally monitored, the system must be monitored off-site.
Plenty of homes have local fire and smoke alarms. When activated, these set off a siren, strobe, or sound, but they don’t notify authorities. Local systems depend on someone being near enough to hear them to take action.
By contrast, a centrally monitored system is monitored by an alarm company around the clock. When activated, the company notifies authorities, whether that’s the police for burglary or the fire department for a fire.
You typically need to provide proof for each system (one for fire and one for burglary) to get a discount.
The perks of a centrally monitored security system
Centrally monitored alarm systems tend to qualify for insurance discounts because they are more secure. If a company that monitors your system can respond quickly to a theft or fire, you might:
- Incur less property damage from smoke or fire
- Suffer fewer losses from theft
Whenever you take steps to make your home safer and reduce loss exposures, insurance companies typically reward you with lower premiums. After all, fewer or less severe claims are good for all parties involved.
But there's also the added benefit of peace of mind. If you're out of town and something happens, the security company can help coordinate damage control. Most centrally monitored systems on the market today also have smartphone apps that alert you when something's awry, giving you more control over your home's safety.
How to prove that you have a centrally monitored alarm system
Your insurance company will likely need a certificate of alarm before it will give you a discount. This document states what type of alarm(s) you have and how the system is monitored. Most monitoring companies issue one when you purchase their product, and many even allow you to download the certificate from your customer portal online.
