HOUSE alarms of all varieties are sold to owners desperate for peace of mind and security; responsible people that want to protect their homes. They also offer the hope of reduced home insurance, so can they save you money on your annual policy?
In theory, having an alarm system can save you money on your home insurance. To do this it needs to tick several boxes. It should be NACOSS approved, be armed at all times when you are not in the property and be continuously monitored by a professional security company that can alert police if required. Tick all of these boxes and you could save money on your home insurance.
Other alarms that are audible only or user fitted, really only deliver peace of mind to the homeowner, they are unlikely to make any difference to your home insurance policy price.
But take a step back and you’ll realise that the potential costs of saving on your home insurance are likely to be a lot less than the cost of the approved alarm and its annual maintenance and servicing contract. At £100 for an annual service and £5 per month monitoring service, you will be clocking up £160 per year in fees for the approved alarm.
Bear in mind the average home insurance policy costs around £200, you are paying 80% of that cost in operating the alarm, you would need to get your home insurance for £40 to break even. That’s impossible, you may expect a 10-15% reduction (£20-£30) at most, so in the case of a normal home it probably doesn’t pay to have an alarm to insurance specifications fitted unless you really want the peace of mind.
Where an alarm does save money is on high net worth homes. We are talking properties worth well over £1million with very high value contents and annual policy premiums for home insurance at the £1000+ level. A 15% reduction for an alarm system makes more sense here and is probably a requirement anyway.
Brokers and insurers can apply discount to a home insurance policy on discretion that is more than an alarm can deliver by itself. They do this via price comparison and normal market forces as they try to win your business, so perhaps a zero cost option to save money is to shop around. I suggest you try The Property Insurer for the best policies and most competitive prices for home insurance in the UK.