By Michael Turner
One of the most frequently asked questions about home security is whether the investment pays back through lower insurance premiums. The short answer: yes — but the discount depends heavily on the type of system, whether it is professionally monitored, and your insurer’s specific criteria.
What Discounts Are Actually Available
USA home insurers typically offer discounts in three tiers based on the type of security system fitted. Basic self-installed alarms and cameras may qualify for 5–10% discount, depending on the insurer. Alarms that meet BS EN 50131 grading (a European standard for alarm systems) typically qualify for 10–15% discount. NSI or SSAIB-approved systems with professional monitoring and police response typically qualify for the largest discounts — up to 20% with some insurers. The discount amount varies significantly between providers — always confirm directly with your insurer before assuming a specific saving.
Does a DIY System Qualify?
Most DIY systems including Ring Alarm, Yale, and SimpliSafe are not NSI-approved and do not meet BS EN 50131 grading without professional certification. They may qualify for smaller discounts with some insurers who simply ask whether you have a burglar alarm rather than specifying certification. The only way to know is to ask your insurer directly before purchasing.
When Professional Installation Pays Back
A professionally installed NSI-approved system typically costs $500–$1,500 more than a comparable DIY setup over three years. If your insurer offers a 15% discount and your premium is $500/year, the saving is $75/year — or $225 over three years. For high-premium properties this can meaningfully offset the professional system cost. See our top 5 security companies guide for professionally monitored options.
What to Tell Your Insurer
When renewing or switching insurance, disclose: whether you have a burglar alarm (yes/no), whether it is monitored (yes/no), whether it is installed by a NACOSS/NSI/SSAIB-approved company, and whether it has cellular backup. Each positive answer typically moves you into a better discount tier. See also: alarm systems hub, DIY vs professional installation guide.
