Insurance Companies Offering Discounts if Homes are Alarmed

In an effort to encourage people to stay safe, especially when a crippling economy has led to a bout of crime, many of the nation’s insurance companies are offering substantial discounts on homeowners’ insurance if they install a monitored security system.

According to a study by Dr. Simon Hakim of Temple University, a single family home that is alarmed is more than 60 percent less likely to be burglarized than a similar home without an alarm.

Ten of the largest insurance companies offering homeowners coverage were surveyed recently and results indicate that companies offered premium discounts of up to 20 percent if a home had an alarm system, according to Dom D'Ascoli, president of the Electronic Security Association. The discounts can be used to defray the costs associated with monitoring and installation.

"The majority of insurance companies offer discounts for alarm systems," said Michael Barry, spokesperson for the Insurance Information Institute, in a statement. "Homeowners should check with their individual carrier to determine the amount and availability of the discounts."

A comprehensive two-year study in Newark, N.J., by Rutgers University School of Criminal Justice demonstrates why insurance companies are offering the discounts. The researchers used techniques to eliminate the variables that impact crime rates and to focus solely on the impact alarm systems have on residential burglaries.

"Thanks to modern technology alarm systems are more affordable, versatile and dependable than ever before," said D'Ascoli. "The Rutgers study showed that these technical innovations have increased the availability of home security systems to middle class homeowners and helped reduce crime."

The study also indicated that as much as 30 to 40 percent of burglars tend to avoid homes with burglar alarm systems. Homes with monitored alarm systems are three times less likely to be burglarized as opposed to homes without the system. Similarly, businesses without alarm systems are 4.5 times more likely to be burglarized than the ones with an electronic security system.

Aside from deterring burglars, modern home alarm systems also reduce the damage caused by fires. Fire and lightning claims are almost 10 times higher than claims for burglaries and thefts according to statistics from the Insurance Information Institute.

"The alarm's ability to notify the fire department whether or not anyone is at home or able to call for help is vital in reducing the cost of these claims and protecting building occupants," said D'Ascoli.  

Since home security is being pushed more than ever before, some companies have started to help individuals who want to purchase an alarm system to find the right alarm company in their area. Security Cubed, for example, offers a website in which users log on to the site and fill out an information form. Ten minutes later, the user will receive a phone call from a trusted home security company with a quote.

"We understand that finding the proper home security company to protect everything you love can be an intimidating task and can deter most people from even trying," said Security Cubed Founder Robert Adler in a statement. "Burglary is never an easy topic to discuss or confront, but with one occurring every 14.6 seconds in the U.S., it is imperative that people know they have help when it comes to finding the right home security company."

According to recent statistics, property crimes make up more than three-quarters of all crime in the United States. In 2007, burglary offenses cost victims an estimated $4.3 billion in lost property.
Carrie Schmelkin is a Web Editor for TMCnet. Previously, she worked as Assistant Editor at the New Canaan Advertiser, a 102-year-old weekly newspaper, covering news and enhancing the publication's social media initiatives. Carrie holds a bachelor's degree in journalism and a bachelor's degree in English from the S.I. Newhouse School of Public Communications at Syracuse University. To read more of her articles, please visit her columnist page.

Edited by Carrie Schmelkin