Smart Security Systems That Actually Lower Insurance Premiums
In today’s real estate landscape, landlords and property owners are constantly looking for ways to protect their investments, reduce liability, and improve their bottom line. One of the most overlooked strategies? Installing smart security systems that do more than just deter crime—they can also lower your property insurance premiums.
As insurers become more tech-savvy and risk-conscious, they’re increasingly rewarding property owners who proactively mitigate risk. But not all security systems are created equal, and only certain technologies reliably lead to insurance savings.
This blog will walk you through:
Why insurance companies care about smart security
Which systems make the biggest impact
How to document and report upgrades
Real-world tips for maximizing both protection and profit
Let’s dive into how smart security can safeguard your property—and your wallet.
Why Insurance Companies Reward Smart Security
At its core, insurance is all about risk management. The fewer claims an insurer expects to pay, the more willing they are to reduce your premiums. Smart security systems help by:
Deterring break-ins and vandalism
Detecting fire, water leaks, or carbon monoxide early
Monitoring activity in real-time, allowing for quicker response
Providing digital records for claims, reducing fraud
From the insurer’s perspective, these features lower the likelihood and severity of claims, which justifies premium discounts ranging from 5% to 20%, depending on the provider and system type.
What Qualifies as a "Smart Security System"?
The key distinction here is “smart”—meaning the system is internet-connected, remotely accessible, and capable of real-time monitoring or alerts. Insurers generally look for systems that:
Are centrally monitored or self-monitored via mobile apps
Provide event logging and documentation
Reduce risk for theft, fire, water damage, or liability
Now let’s look at the specific components that tend to unlock the most insurance savings.
1. Smart Surveillance Cameras
Security cameras have long been a crime deterrent, but smart cameras take things further by:
Streaming footage to mobile devices
Sending alerts for unusual activity (e.g., motion detection)
Saving cloud footage for claim verification
Recommended Devices:
Ring Floodlight Cam – Combines lighting, two-way audio, and HD video
Arlo Pro 5S – Wire-free with AI-powered motion detection
Google Nest Cam – Seamless integration with Google Home
Insurance Tip: Cameras that cover entry points, parking areas, and shared spaces can significantly lower your risk profile.
2. Smart Locks and Access Control
Physical keys are easily lost or copied. Smart locks offer better control and reduce liability related to unauthorized access or lockouts.
Features insurers appreciate:
Time-stamped access logs
Remote locking/unlocking
Temporary codes for guests or contractors
Top Smart Locks:
August Wi-Fi Smart Lock
Schlage Encode
Yale Assure Lock SL
Bonus: With fewer rekeying costs and better tenant turnover management, these locks also save on maintenance.
3. Smart Fire and Carbon Monoxide Detectors
Traditional smoke detectors do little if no one is around to hear them. Smart detectors alert you (and sometimes first responders) even when the property is vacant.
Best Options:
Google Nest Protect – Detects both smoke and carbon monoxide, and sends alerts to your phone
First Alert Onelink – Includes voice alerts and app integration
Insurance Insight: Because fire and smoke damage claims can be high-cost, many providers offer 5–10% discounts just for having centrally monitored detectors.
4. Smart Water Leak Detectors
Water damage is one of the most common (and costly) insurance claims. Smart sensors placed under sinks, behind washing machines, or near water heaters can detect leaks before they spiral out of control.
Recommended Devices:
Flo by Moen – Monitors water usage and can shut off water automatically
Phyn Smart Water Assistant – Learns your water patterns to detect anomalies
Honeywell Lyric Wi-Fi Leak Detector – Easy DIY installation and mobile alerts
Insurer Perspective: A $100 leak detector could save a $10,000 claim—making this one of the most impactful upgrades.
5. Smart Alarm Systems
A modern alarm system is no longer just a keypad. It’s a smart, connected hub that integrates with sensors, locks, and cameras to offer a full security ecosystem.
Top Platforms:
SimpliSafe – Affordable, modular, and easy to install
ADT Smart Home – Professional installation with monitoring
Vivint Smart Home – High-end integration with full automation
Tip for Landlords: Some systems can be shared with tenants or managed remotely, making them ideal for multi-unit properties.
How to Get the Insurance Discount
Installing a smart security system is just the first step. To ensure you actually receive the discount:
Contact your insurance provider before purchasing to see what qualifies
Request a certificate of installation or monitoring from the provider or manufacturer
Email documentation to your insurance agent as proof of system type and coverage
Ask for bundling discounts if you’ve upgraded multiple properties
Warning: Not all insurers recognize the same systems. A quick call to your agent can save you the headache—and confirm you’re buying something they’ll reward.
Extra Benefits Beyond Insurance
While premium savings are nice, the real ROI of smart security includes:
Tenant appeal: Security-conscious renters may pay more or stay longer
Lower turnover costs: Smart locks and remote monitoring reduce vacancy downtime
Faster emergency response: Real-time alerts mean faster reaction to critical issues
Claim support: Video footage or event logs can make the difference between a denied and approved insurance claim
In a high-liability world, peace of mind is priceless—and often profitable.
Final Thoughts: Make Security an Asset, Not Just an Expense
Smart security systems are no longer just futuristic gadgets—they’re a strategic investment in risk management and operational efficiency. By installing tech that detects problems early and deters crime, you’re doing more than protecting your property—you’re also improving your financial resilience.
When insurers see that you’re serious about mitigating risk, they reward it. And in the competitive world of property ownership, that edge can make all the difference.
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