When it comes to home insurance, Canadian homeowners want the best coverage at the lowest rate. Many people fail to take advantage of rebates, incentives, and discounts simply because they do not review their policy annually or do the research to realize they’re eligible for them.
One way to save money on your home insurance policy is by having an alarm system installed in your home. Insurance providers across the country offer significant discounts to policyholders who take this extra step. Keep reading to learn more about insurance discounts for home alarm systems in Canada.
The benefits of a home alarm system
Break-ins and home invasions happen. One of the best ways to protect yourself, your family, and the valuable belongings in your home is to invest in a home alarm system. Home alarm systems offer plenty of benefits, from deterring crime to saving your money on your home insurance policy.
With both a functional home alarm system and a valid home insurance policy , you’ll be protected in a wide range of circumstances.
Some of the top benefits of home alarm systems are as follows:
- Home alarm systems deter crime: Studies have found a correlation between neighbourhoods with a higher rate of visible alarm systems and a decrease in robberies. Security cameras can effectively scare off burglars, especially since many automatically notify local authorities when a break-in is attempted. Therefore, having a security system not only protects you and your home, it can protect the community at large, creating a safe neighbourhood for everyone.
- Home alarm systems can save you money on home insurance: Though home alarm systems will cost you money (typically paid as a monthly fee), they can also save you money on home insurance. Depending on the type of system installed in your home, your insurance provider may reduce your premium by between 10% and 20%.
- Home alarm systems allow remote access to your home: Modern alarm systems allow you to remotely monitor what’s happening in your home, even when you aren’t there. Depending on the monitor, you can hook up the security cameras in your home to your smartphone. You may even be able to control your thermostat, locks, and lighting through your phone if you have the applicable smart devices installed.
- Home alarm systems inform you of fire or gas problems: Did you know that a home alarm system can be linked to your smoke and carbon monoxide detectors? If you aren't home and one of your alarms goes off, you’ll receive an alert via your home alarm system. Depending on the model, you can even program the system to alert the police in cases of emergency.
- Home alarm systems offer peace of mind: When you know your home is protected from thieves, fires, and more, you’ll be able to sleep better at night.
Common types of home alarm systems
The most common types of home alarm systems in Canada are as follows:
Local alarms are standard alarms that will emit a siren noise and flash lights when activated. These systems are not monitored, meaning the authorities will not be contacted unless someone in the home or a passerby hears the alarm and independently contacts them.
Local alarms can still be an effective deterrent, scaring off a burglar in or near your home. Local alarms not only detect break-ins, but they can also detect fires or gas leaks, which can be critical if a fire breaks out while you are sleeping at night.
As local alarms are the most basic type of alarm system, they may not result in as much of an insurance discount as other types.
Central alarm systems are monitored by an alarm company 24/7. When activated, the alarm company will contact the homeowner and ask for a password, in case the alarm was accidentally triggered. If they do not receive a response or the password given is incorrect, the company will immediately notify local authorities.
As you can see, central alarm systems are a step up from local alarms, which is why homeowners who install these types of systems may be eligible for greater insurance discounts.
Internet home security camera
An internet home security camera allows a homeowner to monitor their home from anywhere. This type of security camera can be purchased independently of a central alarm system or it can be incorporated into a central alarm system.
What home alarm system offers the best discount?
Depending on the type of alarm system in your home, your insurance company may offer a discount of up to 20% on your home insurance policy. When determining your discount, the insurance provider will likely ask about the specific type of alarm system in your home. Certain types are seen as more effective than others, however, having any type of alarm system in your home should result in a discount.
Typically, homeowners with homes that are equipped with central alarm systems will receive the greatest discount, as these types of systems are considered to be among the best at deterring break-ins.
Other ways to save money on home insurance
Home insurance can be expensive, even if you receive a discount thanks to your alarm system. Luckily, BrokerLink is here to help you find the best home insurance policy at the most affordable price. We never want home insurance to break the bank, which is why we are happy to share our resources and expertise to help Canadians find cheap home insurance rates.
Beyond working with a trusted broker from BrokerLink, there are a few other ways Canadian homeowners can save money on home insurance. From making annual payments to increasing your deductible, check out our top three tips for getting the most competitive home insurance rates in Canada.
Increase your deductible
A general rule of thumb in the insurance industry is that the higher your deductible, the lower your insurance premium. A deductible is the amount of money you are responsible for paying towards an insured loss, and all insurance policies (from home insurance to auto insurance) have a deductible.
To learn more about the pros and cons of raising your deductible, get in touch with BrokerLink. One of our expert advisors can help you understand the impact of increasing your deductible to determine if doing so is right for you.
Choose annual payments
When you purchase any type of insurance, you usually have the option of paying for it annually or in monthly installments. If it’s feasible, we always recommend paying for your home insurance policy annually. When you pay monthly, it may come with administrative fees, which makes doing so more expensive in the long run.
Combine multiple insurance policies
The more insurance you buy from a provider, the more money you can save. For this reason, bundling multiple insurance policies is one of the most effective ways of minimizing the cost of home insurance. For example, if you recently bought a home, as well as a car, consider insuring them both with the same company. Bundling insurance policies can save you up to 15% on each respective policy.
Contact BrokerLink to learn more about insurance discounts on home alarm systems in Canada
To find out more about home insurance discounts in Canada, contact BrokerLink. We are home insurance experts and our knowledgeable advisors will save you money on home insurance by unlocking discounts on your behalf. We will ask about the details of your home alarm system and compare quotes from Canada’s top insurance providers.
You can also contact BrokerLink to request a free home insurance quote or use our online quote tool.
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