If you’ve been shopping for a homeowners insurance policy recently, you might have been wondering: Can you save on home insurance by having a security system?
And the answer is: Yes, you can.
A lot of our customers across New England get 15% to 20% off their homeowners insurance after they put in a monitored alarm system. A good security system for insurance does two jobs at once. It keeps your home safe. And it lowers the bill you pay your insurance company every year. We help people sort this out every week, so here is the plain-English breakdown of how an alarm system for insurance actually works, what the discount looks like, and how to get it without overpaying.
We have been doing this since 1972. Alarm New England is family-owned, and we run offices in Boston, Hartford, Providence, Cape Cod, Mattapoisett, and Newburyport. We live in the same towns we protect. So we know the local police departments, the older housing stock, and the weather problems that lead to claims around here.
What counts as a security system for insurance?
Not every gadget counts. Insurance companies care about one thing: does the system lower the chance you file a claim? The more it lowers that risk, the bigger your discount.
Here is what most insurers look for in a security system for insurance:
- 24/7 professional monitoring. A real monitoring center watches your home around the clock. If an alarm trips, they call you and then call the police or fire department. This is the part that earns the biggest discount.
- Burglar (intrusion) protection. Door and window sensors plus motion detectors.
- Fire and smoke monitoring. Monitored smoke detectors that send a signal to the monitoring center, not just a beeping alarm on the wall.
- A central station that is UL-Listed. This is an industry safety rating. Insurers trust it. Our monitoring station is UL-Listed.
- Water leak sensors (a bonus). Some insurers give extra credit for these because water damage claims are so common.
A loud alarm that only beeps inside the house is called a “local” alarm. It might get you a small discount, but it will not get you the big one. The same goes for a do-it-yourself kit that only sends an alert to your phone (A.K.A. Ring or Vivint). If you are asleep or your phone is dead, nobody responds. Insurers know that, so they pay less attention to it.
How does having a burglar alarm affect your homeowner’s insurance premiums?
A monitored burglar alarm makes your home a lower risk. Lower risk means a lower premium. Most insurers pass some of that savings back to you as a discount.
The size of the discount depends on your insurer and your system. Here is the range we see:
- A basic local-only or self-monitored alarm: often around 2% to 5% off.
- A professionally monitored burglar alarm: usually 5% to 15% off.
- A fully monitored system with both burglary and fire monitoring: this is where the 15% to 20% discount comes in.
Let’s make it real. Say your home insurance is $2,000 a year. A 15% discount saves you $300 every year. A 20% discount saves you $400. That savings comes back year after year, so it adds up fast.
The discount usually shows up on your policy’s declarations page. If you do not see it there, call your agent and ask. Many people qualify and never claim it.
What is the cheapest/most cost effective home monitoring system with 24/7 police and fire call?
The most cost-effective system is the smallest one that still has real 24/7 monitoring with police and fire dispatch. You do not need a house full of cameras to get the insurance discount. You need a system the monitoring center can act on.
A budget-friendly setup that still qualifies usually has:
- A control panel or hub
- Door and window sensors on the main entry points
- One or two motion detectors
- A monitored smoke detector for the fire side
- 24/7 professional monitoring with a UL-Listed central station
Our monitoring starts at $31.99/month. For a lot of homeowners, the insurance discount covers a big chunk of that monthly cost. So your real out-of-pocket can be a few dollars a month once the savings kick in. When you look at the big picture, a basic professionally installed system runs you just about $1 a day, and larger homes with cameras and smart locks run more. View Alarm New England’s security plans here.
The key is the “police and fire call” part. Make sure the smoke detectors are monitored, not just standalone. A standalone smoke alarm protects you when you are home. A monitored one gets the fire department rolling even when you are away. That is the version insurers usually reward.
How can I get a minimal system for insurance?
You can keep it simple. A minimal system for insurance is a small, monitored setup that hits the boxes insurers care about. You skip the extras and keep the parts that earn the discount.
Here is how to get one:
- Call us for a free phone consultation. We will ask a few questions about your home and your doors. You can reach us by phone at (857) 445-4010 and choosing extension 1.
- Pick a small monitored package. Entry sensors, a motion detector, a monitored smoke detector, and 24/7 monitoring. That is enough for most policies.
- Get it installed by a licensed tech. We use our own Massachusetts, Connecticut, and Rhode Island licensed technicians, not subcontractors.
- Ask for your alarm certificate. This one document is what unlocks the discount (more on that next).
- Send the certificate to your insurance agent.
That’s it. You do not need to buy the biggest package to save money on insurance. You need the right parts, monitored, with paperwork to prove it.
What are the best recommendations for home insurance that requires fire & theft monitoring service and a certificate?
Many policies ask for two things: monitored fire and theft service, and a certificate that proves it. The certificate is the piece people forget.
The document is usually called an alarm certificate or a certificate of monitoring. Your alarm company gives it to you. It lists what your system has and confirms it is monitored 24/7. Your insurance company uses it to apply the discount.
Here is what we recommend:
- Get both fire and theft on one monitored system. A combined burglary-and-fire system earns the top discount tier. Fire claims are some of the most expensive claims insurers pay, so monitored fire detection matters a lot to them.
- Ask your alarm company for the certificate right after install. We send ours to you, and we can send it straight to your agent if you want.
- Confirm the central station is UL-Listed. Some insurers require this in writing. Ours qualifies.
- Re-shop your insurance each year. Discounts and rates change. It pays to compare.
A New England note on fire and water
Our winters cause real claims. Space heaters and old wiring lead to house fires when the cold hits. Frozen and burst pipes flood basements during a January cold snap. A monitored system with fire detection and water leak sensors catches these early. That protects your home, and it can earn extra credit on your policy. At Alarm New England, this is the kind of local risk we design around every day.
Do homeowners’ insurers only offer discounts for alarm systems if they are installed by their approved vendors?
In most cases, no. This is one of the biggest myths we hear.
Most insurers do not keep an “approved vendor” list. They care about whether your system meets their rules: is it monitored 24/7, does it cover fire and theft, and is the monitoring station UL-Listed? If your system checks those boxes and you have the certificate, almost any insurer will apply the discount.
A few things to know:
- Some insurers do name certain national brands in their materials. That does not mean other companies are blocked. It usually means those brands are common, not required.
- What matters most is the certificate and the monitoring features, not the logo on your panel.
- Ask your agent two simple questions: “What features do you need to see?” and “Do you accept a standard alarm certificate?” Their answer tells you everything.
We work with customers on every major carrier, and our certificate is accepted across the board. If your insurer ever needs something specific, just tell us, and we will put it in writing.
The bottom line
A monitored alarm system for insurance is one of the few home upgrades that pays you back every single year. It keeps your family safe, and it can knock 15% to 20% off your homeowners insurance once you have monitored fire and theft service plus a certificate.
If you want help picking a system that qualifies, we are happy to walk you through it. Alarm New England has protected New England homes since 1972, with a UL-Listed monitoring station and local licensed technicians in Massachusetts, Connecticut, and Rhode Island. Call us at (857) 445-4010 or request a free quote, and we will help you get the right system and the certificate your insurer needs.
