A monitored security system is one of the few home upgrades that can pay part of itself back every single year, not just at the point of a claim. Most major homeowners insurers offer a discount for having one — but the size of that discount, and what actually qualifies, varies a lot more than most people assume.
How insurance discounts for security systems work
Insurers price homeowners policies partly on the statistical likelihood and cost of a claim. A monitored alarm reduces both the odds of a successful burglary and, for fire/smoke monitoring, the odds of catastrophic loss versus an early response — so insurers pass part of that reduced risk back to you as a discount, usually applied automatically once you provide proof of the system.
What typically qualifies
| System type | Typical discount range | Monitoring required? |
|---|---|---|
| Local alarm only (siren, no dispatch) | 2-5% | No |
| Professionally monitored burglar alarm | 5-15% | Yes |
| Monitored smoke/CO detection | 2-8% (often stacks with burglar discount) | Yes |
| Water leak/freeze sensors | 1-5% (often stacks) | Sometimes |
| Full monitored system (all of the above) | 10-20% combined | Yes |
As covered in our alarm systems guide, "monitored" specifically means a company is watching for alerts and will contact emergency services on your behalf — a self-monitored app-only system (you get the phone alert, you call 911 yourself) typically does not qualify for the larger discount tiers.
How much you can realistically save
On a typical annual homeowners premium, a 10-20% combined discount is meaningful, but it's worth running the math against the actual monthly monitoring cost (see our full cost breakdown) before assuming the system "pays for itself" purely on insurance savings alone — for most homeowners it offsets a meaningful chunk of the monthly fee, not the whole thing.
How to claim the discount with your insurer
Discounts are not applied automatically just because you have a system — you generally need to call your insurance agent or submit proof through their online portal. Most insurers ask for: the name of your monitoring company, your account or contract number, and sometimes a certificate of monitoring service that your alarm provider can generate on request. Ask specifically which of your devices (burglar, smoke/CO, water leak) each qualify separately, since some insurers list them as line items rather than one bundled discount.
Frequently asked questions
Does a Ring or SimpliSafe DIY system qualify for a discount?
It depends on the insurer. Some offer a small discount for any connected alarm system, monitored or not, while others require professional monitoring with a monitoring company that can verify and dispatch to qualify for the full discount. Always check with your specific insurer rather than assuming.
Do I need professional monitoring to get the discount?
For the largest discounts, usually yes. Insurers generally offer a smaller discount (often 2-5%) for an unmonitored system with local alarms only, and a larger discount (often 10-20%) for a professionally monitored system that guarantees a call to emergency services.
Which is more impactful for insurance: alarm, cameras, or leak sensors?
Monitored burglar alarms typically carry the largest standalone discount, but many insurers stack additional smaller discounts for monitored smoke/CO detectors and water leak sensors, since those prevent the most common and costly types of claims.