We all agree that protecting our home against opportunistic burglars is important. To quote the old adage, it’s better to be safe than sorry. In truth, that phrase bears a lot of relevance in regard to home security.
Security cameras are a well-known means of protection against unwanted trespassers. Thanks to them, we can see exactly when and how a thief succeeded to break in. What’s more, having cameras installed in our home is a good enough reason for potential perpetrators to stay away.
However, good protection comes at a hefty price. A standard security camera system can cost upwards of $1500. For that reason, we might want to check whether that investment can save us a few bucks. Since CCTV supposedly increases the level of security, does that mean our insurance costs will go down?
In this article, we will answer the following question — “Do security cameras reduce insurance?” Additionally, we’ll look at the reasons why, as well as the ways they can do it.
Do Security Cameras Reduce Insurance?
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The short answer is a resounding “maybe.” However, let’s not get disappointed immediately and dig a little deeper. Basically, whether the answer is a “yes” or a “no” hinges on several factors, like the type of our security camera and our choice of insurance company, among others.
First of all, we should be aware that security measures don’t necessarily reduce the cost of our insurance. Some insurance companies may offer a discount depending on our security system.
For the most part, an insurance company may demand that we connect our cameras to a 27/7 central alarm station. That way, operators can send someone our way to help us mitigate our loss. Such a professional surveillance system can indeed make us a fit candidate for an insurance discount.
Still, we strongly suggest that our readers consult their insurance provider for clarification. If the insurer does offer a discount, we have to know what kind of a surveillance system they prefer. Otherwise, we might want to either cut the cost of our surveillance system or look for another insurer.
Why Do Security Cameras Reduce Insurance?
The truth is, no company aims at an unprofitable deal. The same goes for the insurers. In other words, the insurance company may give us a discount because it bodes well for them.
Not to say we’re stating the obvious, but the odds of burglary rise drastically if our home has no security system. Of course, installing one will reduce those odds. But what does an insurance company have to gain from that?
Simply put, as the number of claims goes down, the insurer’s profits go up. With fewer clients in need of reimbursement, the company will gladly cut our insurance fees.
If we own a small business, our business insurance costs may go down if we set up security cameras. Usually, a slip-and-fall accident can make a 22,000-dollar hole in our pocket.
Therefore, a scheming customer may file a false claim against the general liability insurance policy of our business. That is exactly the reason why an insurance company may offer our business a discount on liability insurance if we have cameras in place.
Why Security Cameras Don’t Reduce Insurance
In contrast to our previous statement, there might be a few reasons why CCTV cameras won’t reduce insurance fees.
There are quite a few companies that do not offer a discount if we have stand-alone surveillance cameras. In fact, these companies seem to favor alarm monitoring systems over CCTV.
While it’s easy to verify that an alarm system is up and running, that is not the case with security cameras. However, there are exceptions when the cameras connect to an active alarm monitor.
Earlier in the article, we mentioned that having a CCTV system is, in itself, enough to deter burglary. However, that is not always true. If an intruder does not see the camera, they will try to break in anyway. For the most part, cameras are just “digital witnesses” to a crime. In other words, we can use the recorded footage as evidence.
How Much Money Can We Save on Insurance?
The discount we might get depends on the surveillance system we use — the number of cameras and their quality. Generally speaking, installing cameras can save us between 5% and 20%
Another factor to take into account is the type of central monitoring. If the system can notify emergency personnel, the discount will be greater. However, if only the homeowner gets a notification from such a system, the discount will be smaller.
Aside from the type of our surveillance system, an insurer also considers other factors when giving us the final insurance quote. Those include the crime rate in our neighborhood, as well as the number of claims in our area. In a nutshell, as the level of safety rises, so does the insurance discount.
Why We Actually Need Security Cameras
So far, we’ve discussed how we can save money on insurance if we buy security cameras. However, we must note that getting an insurance discount won’t necessarily compensate for the cost of our surveillance system.
We’d like to note that the primary purpose of security cameras is ensuring home security. They are a trustworthy tool in preventing potential break-ins. Yet, we can’t think of them as shortcuts to paying less money for insurance. While it’s reasonable to ask for a discount if we already have cameras in place, it shouldn’t be our main motivation for installing them.
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The Bottom Line
Installing security cameras is a smart move, regardless of the space we want to protect. What’s more, they come with an additional perk — insurance discounts.
Indeed, there is an ongoing debate on whether this is true or not, so we can always approach an insurer and see if they offer such a discount. Still, whatever the case may be, we mustn’t forget that a lower insurance fee is only an extra perk that comes with installing security cameras.
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