Does a Burglar Alarm Save on Home Insurance? How Much Can I Save?
There’s a common belief that installing a burglar alarm not only keeps your home safer but also helps cut the cost of your insurance. And honestly, it’s not far off the mark. Home security systems can act as a deterrent, lower your risk profile, and yes, in many cases, reduce your insurance premiums. But how much of a difference does it really make? And is the saving enough to justify the cost of an alarm system?
Are Burglar Alarms Worth It for Insurance Purposes?
First off, insurers care about risk. If you can demonstrate that your home is less of a target for burglars, then you become a lower-risk policyholder. And lower risk often means lower premiums.
But it’s not quite as simple as just buying the first alarm you find online. Not all burglar alarms are treated equally. A basic, DIY system might help psychologically, but it’s unlikely to make much of an impression on your insurer. For most insurance companies, only professionally installed and regularly maintained systems are taken seriously.
Do Burglar Alarms Actually Lower Your Insurance Premium?
The short answer is: sometimes. The long answer? It depends entirely on your provider and your policy.
Some insurers will offer a modest discount if you have a burglar alarm installed, especially if it’s a high-quality, professionally monitored system. Others might take it into account as part of a broader home security picture, alongside things like door locks, window locks, and security lighting. The alarm, in those cases, might not bring its own discount, but could contribute to an overall lower quote.
It’s also worth noting that for homes in high-crime areas or those with valuable contents, some insurers might insist on an alarm before they’ll even cover you. So it’s not always just about savings. Sometimes, it’s a condition of cover.
How Much Can You Save with a Burglar Alarm?
On average, home insurance discounts for burglar alarms fall in the range of 5% to 10%, though it can vary. A lot depends on your postcode, the value of your contents, the type of alarm, and even whether it’s actively monitored.
Let’s say your annual premium is around £300. A 10% discount would bring that down to £270. Over five years, that’s a saving of £150. Now compare that to the cost of installing a monitored alarm system, which could run you upwards of £400 to £500 plus a monthly fee. You can see how it becomes more of a long-term investment rather than an instant money-saver.
However, if you’re already looking to upgrade your security for peace of mind, then the insurance saving becomes a nice bonus.
Types of Burglar Alarms and Their Impact on Insurance
Here’s where it gets interesting. The type of alarm you install matters. A lot.
Bells-only alarms are the most basic type. They make a loud noise when triggered, alerting you or the neighbours, but they don’t contact anyone automatically. They’re better than nothing, but most insurers won’t offer much of a discount for these.
Monitored alarms, on the other hand, are linked to a security company or alert system. If the alarm is triggered, someone is notified right away. These systems are often viewed more favourably by insurers and stand a better chance of unlocking a discount.
Smart alarms are increasingly popular. Many now connect to your phone, so you can get alerts, monitor cameras, or even control your system remotely. These may be looked upon favourably if installed by an accredited professional and properly maintained.
What Insurers Look for in a Security System
If you’re banking on insurance savings, your alarm system needs to meet certain criteria. Most insurers will prefer systems that are installed by a company certified by the NSI (National Security Inspectorate) or SSAIB (Security Systems and Alarms Inspection Board).
They’ll also want to know that the system is kept in good working order, ideally with an annual maintenance contract. DIY setups are less likely to cut it, even if they’re technically capable.
Some policies might even become invalid if you have an alarm but don’t use it consistently. Forget to set it while you’re away? That could cause issues if you ever need to make a claim.
Other Benefits of Installing a Burglar Alarm
Of course, insurance savings are only one part of the story. The main reason people invest in a burglar alarm is for peace of mind. Knowing that your home is protected while you’re out or asleep is often worth more than any discount.
There’s also the deterrent effect. A visible alarm box on the outside of your property sends a strong message to would-be intruders. Many will simply move on to an easier target. And beyond security, some buyers look for homes with existing alarm systems, so it can be a nice little tick in the box if you’re selling up in future.
Do All Insurers Offer Discounts for Alarms?
No, not all of them do. Some insurers might give no discount at all for an alarm. Others might only offer it as part of a multi-factor assessment of your home’s security setup.
This is why it’s worth shopping around. If you’ve invested in a proper alarm system, make sure your insurer acknowledges it. If not, don’t be afraid to get quotes from competitors. You might find someone who’s more willing to reward your efforts.
Also, keep in mind that your insurer may want to see proof of installation, maintenance records, or even an NSI/SSAIB certificate. It’s all about demonstrating reliability and reducing their risk.
Is It Worth Installing a Burglar Alarm to Save on Insurance?
If your only motivation for installing an alarm is to save money on your insurance, the savings are real, but they’re modest.
However, if you’re also thinking about it as part of a broader effort to secure your home, protect your family, and sleep a little easier, then the insurance savings become a helpful bonus rather than the main prize.
Ultimately, it’s about risk and reassurance. And if a quality alarm ticks both boxes, it could be one of the better investments you make for your home. We'd usually recommend a complete alarm kit that allows for expansion over time. That way, you don't have to purchase everything up front; you can get the basics of your burglar alarm and build the system over time.
