How a Home Security System Can Score You a Homeowners Insurance Discount in 2026

Quick answer: Many insurance providers offer a reduction in your homeowner's insurance premium—typically 5%–20%—when you have a professionally monitored security system. This can translate to annual savings of $75–$300 per year.

Key takeaways

• Most insurers cut homeowners' premiums by 2% to 15% when you install a qualifying security system.
• Professional monitoring with a central station is the key to unlocking the biggest discounts; self-monitored setups usually qualify for less or nothing at all.
• Annual savings typically run $75 to $300, depending on your premium and the devices you install.
• You'll need a Certificate of Installation from your security provider before your insurer will apply the discount.
• Six major carriers—State Farm, Allstate, USAA, Progressive, Farmers, and Liberty Mutual—all offer security-system discounts, each with its own qualifying rules.

Add a monitored security system to your home, and your insurance carrier is likely to thank you with a discount that lands somewhere between $75 and $300 a year. According to Policygenius, homeowners with a security system installed pay about $100 less per year on average than those without one.

The exact savings depend on which carrier you have, which devices you install, and how the system is monitored. Some homeowners shave 2% off their premium. Others stack monitored cameras, smart locks, fire detection, and water sensors to clear 15% or more.

In this guide, you'll find which carriers discount the most, which devices unlock the biggest savings, and exactly how to claim your discount once your system is installed.

Does a security system lower home insurance?

Yes. Most major insurers offer a discount for installing a qualifying security system, with the size of the credit tied to how comprehensive your setup is and how it's monitored.

The logic is plain enough. Insurers price your premium based on the risk your home presents, and a monitored system makes burglary, fire, and water-damage claims significantly less likely. Carriers pass some of that lower risk back to you. Policygenius pegs the typical discount at 2% to 5% on your premiums, with a few insurers offering up to 15%. Premium smart-home bundles can push the ceiling closer to 20% with carriers like Farmers.

The actual number you see depends on four things: your insurer, the devices you install, whether your system is professionally monitored, and which state you're in. For more on the dollars-and-cents side of home security, see Vivint's guide to 5 ways a security system saves you money.

Alarm system insurance savings by discount tier

Discounts scale with your setup. Here's how the typical tiers play out against the average annual U.S. homeowners premium of $1,569 (based on NAIC 2022 data, the most recent available, per the Insurance Information Institute).

Estimated annual savings by discount tier

Your actual discount will depend on your insurer, your state, and your device mix. The wider your bundle, the closer you get to the top of the range.

Home insurance discount security system: which features qualify

Insurance companies reward protective devices that reduce claim risk. Burglar alarms, smoke detectors, fire alarms, water leak sensors, and sprinkler systems consistently appear on insurer discount lists.

Carriers don't reward every device equally. The features below are the ones that consistently show up on insurer discount lists.

• Burglar alarms. Door and window sensors paired with a siren. The orignal entry point for security discounts.
• Smoke detectors and fire alarms. Monitored smoke detectors and heat sensors that notify a central station, not just chirp at home. Fire alarms with professional monitoring qualify for higher discount tiers.
• Water leak sensors. Leak detectors near washers, water heaters, and basement floors. Farmers takes an average 3% off the premium for water leak detection alone.
• Sprinkler systems. Home sprinkler systems that can suppress fires before they spread often qualify for additional protective device discounts.
• Smart locks and deadbolts. Keypad or app-controlled deadbolts on every exterior door, often listed alongside burglar alarms in qualifying device lists.
• Security cameras. Indoor, outdoor, and doorbell cameras with cloud or DVR recording.
• Motion sensors and glass-break sensors. Room-level motion sensors and window-level glass-break detection that catch entry points the perimeter alarm misses.

If your bundle includes a water sensor, that single device often pays for itself the first year. See Vivint's primer on how water sensors work and why you need them for the longer story.

Smart home insurance discount: pro monitoring is the unlock

The single biggest lever on your discount isn't which devices you own—it's how they're monitored. Insurers reward professional monitoring with 24/7 coverage.

Self-monitored setups (where alerts go to your phone and you decide what to do with them) usually qualify for a smaller discount or none at all. Farmers requires UL-listed central-station monitoring before any alarm discount applies. State Farm structures its discount the same way: a smaller credit for a monitored system that only notifies the homeowner, and the highest tier for a system that notifies emergency personnel directly.

That's the configuration to aim for if you want the largest insurance benefit: a professionally installed system with continuous central-station monitoring, paired with a Certificate of Installation you can hand to your agent. Vivint's 24/7 monitoring service covers exactly that scenario.

Which insurers give the biggest home insurance discount?

Six major insurance companies advertise security system discounts, with Farmers offering the highest (up to 20%) and most carriers requiring professional monitoring for top-tier savings.

The rules and the ceilings vary widely.

Discounts vary by state and product line, so quote your specific carrier for an exact number. The figures above are advertised ceilings, not guaranteed savings.

How to claim your home insurance discount

To claim your home insurance discout, install a monitored system, request a certificate of monitoring, and submit it to your insurance provider.

Once your system is in, the actual claims process is short. Here's the order:

1. Install a qualifying system. A wider bundle (alarm + monitored smoke + cameras + smart locks + water sensor) gets you the largest discount.
2. Activate professional monitoring. A 24/7 central station is the line most carriers draw between a small discount and the top tier.
3. Download your Certificate of Installation. Vivint customers can pull theirs directly from the Account Center.
4. Send the certificate to your insurer. Most carriers can apply the discount mid-policy or at renewal.
5. Verify the discount on your next renewal statement. Confirm it shows up as a separate line item.

If you're still weighing whether the up-front system cost makes sense, see 10 reasons home security is worth the investment for the broader payoff math.

The bottom line

A monitored security system pays you back twice. Once in safer days, and again every year on the renewal statement. The discount won't replace the cost of the system on its own. Stacked across a decade, though, it covers a meaningful share. And that's before you count the burglary, fire, or water claim you didn't have to file.

Frequently asked questions about home insurance discounts for security systems

Most homeowners come back to the same handful of questions before they call their insurance agent. Here's what to know first.

How much is the average home insurance discount for a security system?

The typical discount lands between 2% and 15%, with most insurers offering 2% to 5% and a few going as high as 15% to 20% for premium smart-home bundles. On the average U.S. homeowners premium of $1,569, that translates to roughly $30 to $235 in annual savings. Policygenius pegs the average at about $100 per year across homeowners with any qualifying system.

What qualifies for a homeowners insurance security discount?

Burglar alarms, monitored smoke detectors, fire alarms, water leak sensors, sprinkler systems, smart locks, security cameras, and motion or glass-break sensors are the most commonly approved devices. The discount almost always requires the system to be professionally monitored by a central station, and most insurers ask for a Certificate of Installation as proof.

Will a DIY security system get me the same discount?

Usually not. Self-monitored systems, where alerts go to your phone, and you handle them yourself, qualify for a smaller discount or none at all with most major carriers. Farmers, Liberty Mutual, and State Farm tie the biggest discounts to systems with 24/7 central-station monitoring and emergency dispatch capability.

Do renters get the same security-system discount?

Renters insurance offers similar discounts, though the percentages tend to be smaller and the eligible device list shorter. Check with your specific carrier. Most allow tenants to install their own monitored system and claim the discount the same way a homeowner would.

Can I lose the discount once I have it?

Yes. If you cancel your monitoring service, let the system fall offline, or remove it during a remodel, your insurer can drop the discount at the next renewal. Some carriers also re-verify the Certificate of Installation periodically, so keep a current copy on file.