Offsetting the Cost of a Home Security System
The installation of a new home security system can be a significant outlay for any homeowner. Many individuals rightly cannot put a value on the safety of either their family or certain possessions, nor do they wish to resort to insurance claims due to the time consuming nature of a thorough application. Therefore, many individuals will often choose to install the best system they can afford.
However, many individuals will find that they can offset the cost of their security system through making savings on their insurance premiums. Home insurance companies operate by assessing the risk that a certain home carries when it comes to having to pay out for a claim. There are certain factors that determine the price of a specific premium, including:
· The age, type and value of the property itself. Older houses, or those of a certain style, can cause premiums to rise as they were built before the latest safety and fire-proofing techniques were developed.
· The location or ZIP code of the property. Location has a huge effect on premiums for various reasons. Everyone knows of a ‘bad’ neighborhood where many homes have been targeted. Statistically high crime rates will lead to higher premiums as they present a greater risk for the insurer. The location is also affected by the proximity to flood zones or other natural environmental hotspots.
· The individual is usually factored into any calculations. Their credit rating, together with any insurance history such as the number of claims or any lapsed policies is taken into account as part of the risk.
While different operators will offer different prices, potentially for the same level of cover, any insurer will almost certainly take into account any security measures in place at the property as they reduce their own risk of having to pay out for a claim.
· A good security system will allow for property to be recovered and perpetrators to be identified. Recovered property generally does not need to be paid for by insurance and, while a personal policy is unlikely to be directly affected by an arrest, it may lead to lower local crime rates and lower policy premiums in the future. In real terms, many individuals may find their policies being lowered by up to 20% with a good security system in place.
· Small enhancements to an existing security system can make a significant difference. A home alarm is often expected as standard and will already be factored into most premiums. Changing this basic home alarm for one that is professionally monitored, however, indicates general security awareness and a better line of defense against intruders. Premiums will often be lowered by such a change.
The driving factor between the installation of a security system will almost always be personal peace of mind. However, the reduction in insurance premiums is also a very real benefit. The lower costs may take several years to pay for the system itself, but every little certainly helps in such cases and may allow families to spend more initially for a better security system in the knowledge that some of the costs will be recouped.
There are no comments on this page. [Add comment]