How often do you receive a renewal notification from your home insurer and wonder how they could have possibly ramped up the premiums so much from one year to the next?
It often feels like the more loyal you are to one provider, the more they seem to increase the annual costs – leaving all the best, low-cost deals to new customers. So much for customer loyalty!
Regardless of whatever you are currently paying, home insurance is something that can’t be avoided. It’s all part of home ownership and is there for good reason – to provide you with financial protection against potential losses resulting from fires, natural disasters and, yes, burglaries.
No one wants to suffer a break-in at their property, which is something we at Justice Fire and Security are passionate about preventing.
So, having an intruder alarm installed – and quite possibly other security products, such as CCTV cameras and fire detection equipment, will go a long way to keeping your home safe and secure.
The good news is that, quite rightly, there is a strong connection between home security and home insurance, which can have a large bearing on your annual premium.
How much could I save on insurance if I have a burglar alarm system installed?
You’re probably wondering, how do insurance companies calculate premiums, when half the time it feels like they are simply plucking figures out of thin air? This isn’t actually the case. Their sums are all based on risk. The greater the risk of an incident occurring, which could be reflected in the area where you live and the prevalence of burglaries in the neighbourhood, the greater the risk of insurable incidents - and the more reported incidents, the higher the premium!
Anything that can be done to reduce these risks, however, should be taken into consideration by your home insurer, in the form of reduced premiums.
Burglar alarms come into the category of risk reduction, because they act as big, even formidable, deterrents to intruders.
Does the type of burglar alarm make a difference to insurance premiums?
Yes, the type of installation can affect the level of discount you might receive. A very basic system with an External Sounder might save a little on your insurance, whereas if you have a System Professionally installed and Maintained by an accredited installer, this should be favourably received by your insurer.
If the alarm system is monitored, this provides an extra layer of protection, because it will guarantee that the incident will be attended by the emergency services or a security professional. Again, this attention to detail should be reflected in your insurance premium.
Other features of the home alarm system, such as fire and carbon monoxide detection, may well be considered by certain home insurance companies.
How much money could you save on insurance by having an alarm system?
According to a report from the Association of British Insurers, if you have a burglar alarm system installed in your home, you could receive a discount of anything from 5% to 20% off your insurance premium. The more comprehensive the system, the larger the discount, as previously described.
So, if you are currently paying in the region of £1000 a year for your home insurance (on buildings and content), you may be able to reduce this figure by around £200 per annum. It wouldn’t take too many years of continuing reduced premiums to cover the cost of the alarm installation - in addition to the added protection the alarm system will be providing in the meantime.
Check with your Insurer about the cost benefits of having an alarm system
If you’ve ever dealt with an insurer, you’ll understand how long it can take to get through to someone. But any wait is worth it, when you are discussing the potential benefits of having an intruder alarm.
If you’ve decided on a new installation or you are going for an upgrade to your existing system, discuss it all with them and see what discounts are available. Let them know about its features, whether it will be monitored and if it complies with any British Standards, demonstrating its quality and reliability.
With upgrades, let the insurer know anytime this happens, as this could provide you with a further discount
In summary
The primary reason for installing a burglar alarm is to provide you and your family with heightened home security. But a very welcome, additional benefit that a high quality, fully monitored alarm system offers is the chance to reduce your home insurance premiums.
And rightly so.
It’s only fair that you should be rewarded for taking your home security seriously. Also, look at it as making an investment in your property which, if you come to sell, this should enhance its – which, in itself, is another financial benefit that an intruder alarm can provide.
Justice Fire and Security have been installing burglar alarms, access control systems and security cameras in homes since the 1980s. If you feel the time has arrived to ramp up your home security or want to upgrade your current system, we are here to help. We operate throughout Birmingham and the wider West Midlands area.
If you have any concerns about your current home security arrangements, call our main switchboard on 0845 468 9077.
