Electronic home security has its selling points. One we hear frequently is a potential reduction in homeowners’ insurance. Here is the question: If a security system does lower insurance rates, how much do you actually save? You could ultimately spend more on monthly monitoring than you save on insurance. So you really have to do the math before making a decision.
Every insurance carrier is different. Some offer larger discounts than others, while some do not offer discounts at all. You would have to check with your carrier to know for sure. There is also the matter of shopping around with home security providers to better understand their monthly monitoring rates and the cost of purchasing or leasing their equipment.
If I’m purchasing a home security system anyway, equipment costs would not factor into the insurance question. I would focus primarily on how much monthly monitoring costs versus my insurance savings.
Monthly Monitoring Rates Vary
It goes without saying that monthly monitoring rates vary among providers. Vivint, one of the nation’s better-known home security providers, offers an entry-level package they call HomeProtect. Their monthly monitoring package starts at $24.99 per month. Taken over the course of a year, this means spending $300 on monitoring service. Would you actually save that much on your homeowners insurance?
Another thing to consider is Vivint’s no-contract option versus accepting a 36-month monitoring contract. The $24.99 price is for the contract option. The no-contract option costs an extra $5 per month for monitoring. That means adding another $60 per year for an annual total of $360.
You can obviously choose one of Vivint’s competitors. I am guessing they have variable monitoring rates depending on the system you select. The key is comparing how much money you would spend every year on monitoring versus the amount you would save on your homeowners’ insurance.
Get a Direct Quote From Your Insurance Provider
If this is something you’re serious about, getting a price on your homeowners’ insurance is something you should take directly to your carrier. Don’t attempt to figure this out online.
Trying to find insurance prices online is a trap. You will only end up filling out multiple forms, followed by having all sorts of carriers contacting you to try to sell you insurance. Instead, contact your insurance carrier directly or talk to your agent. An official representative can give you an actual quote based on your current policy and your planned security system.
You might find that you save quite a bit of money. On the other hand, you might not save anything at all. For me, the baseline would be whether I broke even. It would be nice to save some money, but I could live without spending anything extra. If monthly monitoring and my insurance discount were a wash, I could live with that.
Reasons to Pay for Professional Monitoring
With the math out of the way, the next question is why pay for professional monitoring to begin with? After all, DIY home security systems can be self-monitored with a smartphone. Self-monitoring saves quite a bit of money and doesn’t require a ton of effort, at least most of the time.
There are quite a few reasons to pay for professional monitoring; most of them are legitimate. Consider the following:
1. The Professionals Are Fully Trained
At the top of the list is the fact that the professionals are fully trained. Unlike me, they know how to assess alarms. They know how to determine whether emergencies are legitimate. They also do not panic when an alarm comes in. They follow a predetermined procedure to contact you, assess the situation, and contact authorities if needed.
I know how I react to potential emergencies. I could see myself needlessly contacting the authorities and then incurring a fine for a false alarm. The professionals would do a far better job than I could.
2. Professional Monitoring Is Always On
Another reason to consider paying for professional monitoring is the fact that monitoring providers are always on duty. Remote monitoring centers are staffed 24 hours per day, every day of the year. Whether I am home or not, they are working. That means continuous coverage around the clock.
Continuous coverage is obviously a good thing when I’m at work or on vacation. It is also a good thing when I am sleeping. I can go to bed at night knowing that my home is being watched by professionals. I don’t have to depend on my cell phone to wake me up in the event of an emergency.
3. Distraction-Free Monitoring
Since I mentioned my cell phone waking me up, there is also the matter of being distracted throughout the day. Self-monitoring requires that I pay attention to my cell phone for notifications and emails. That is a problem.
I can only speak for myself, but I will say that phone notifications interrupt my thoughts and keep me from being efficient. Nothing kills my productivity more than constant beeps and vibrations from my phone. By leaving monitoring to the professionals, I am able to limit my notifications for a more distraction-free workday.
When I go on vacation, professional monitoring allows me to turn my phone off completely. I don’t have to worry about being interrupted on the beach when I’m enjoying the bright sunshine and blue water. My family appreciates that too. I can be more available to them so we can enjoy quality time together.
Every Consumer Has to Decide for Himself
The best way to wrap this up is to say that there is no right or wrong answer here. Every consumer has to decide for himself whether professional monitoring is worth the money. If you decide it is, you could save on your homeowners insurance by paying for professional monitoring.
Shop around for security packages and contact your insurance carrier. Do the math and let it speak for itself. Paying for professional monitoring could ultimately be a good financial move.
What You Need to Know
- Homeowners should calculate whether the cost of monthly monitoring for a security system outweighs potential savings on homeowners’ insurance.
- Insurance discounts for home security systems vary by provider, with some offering significant reductions while others might not provide any at all.
- Vivint offers a $24.99 monthly monitoring package with a 36-month contract, while a no-contract option is available for $29.99 per month.
- Contacting an insurance provider directly is recommended for obtaining personalized quotes based on one’s current policy and planned security system.
- Professional monitoring services provide trained personnel available 24/7, ensuring continuous coverage and a more reliable response to emergencies compared to self-monitoring.
