How a security system can affect insurance costs

We pay out thousands in insurance premiums each year for everything from our mobile phones to the life or death of our loved ones. Dollars for peace of mind. We insure our homes and possessions so that in the event of a break in we can recover as much as possible and get on with our lives.

However, the process of robbery-claim-recovery is not always a sure thing. Some insurance providers will not pay a claim if your home was not adequately secured at the time of the burglary. Some won’t cover you at all if you don’t have a minimum level of home security.

Even the best security system and the strongest locks will not help if you don’t use them correctly. Deadbolts are great at keeping potential intruders at bay but if you haven’t engaged the lock they’re just an elaborate door or window decoration.

If your insurance provider discovers that the locks weren’t locked or the alarm system wasn’t armed at the time of a break-in they may decline your claim, leaving you thousands of dollars out of pocket.

The average cost of a break-in in Australia is a whopping $2900, with some expenses rising way above that. Each year burglaries cost the country around $2.2 billion*.

Even though we all hope to never have to use our home and contents insurance in the disastrous event that we do being sure you’ve done everything you can to prevent the incident provides some peace of mind that your claim will be accepted.

Things which could affect the likelihood of a successful claim include:

Not locking the house
Leaving doors or windows open provides a thief with easy access.
Failing to set your alarm
Leaving your house uninhabited for extended periods - more than 60 days
Not reporting a break-in to the police

A more elaborate security system can provide top-level protection for your home, however, you don’t need to have a huge set up to safeguard your home. A good security company will provide a home security system within your budget, keeping installation costs as well as insurance premiums down.

What else can affect how much insurance costs?

Your insurance company will calculate your premiums using many factors, all of which contribute to the likelihood that you will lodge a claim. Factors include:

Where your home is located - suburb, elevation, the chance of flood or earthquake
Whether you live in the home, it’s rented or used for another purpose - eg, Airbnb or accommodation, business etc
The age of the house
What the house is built of - eg brick, timber, stone, precast concrete, etc
The risk profile of the property
The level of insurance excess you’ve agreed on

Some insurers will offer reduced premiums or discounts on home and contents insurance if homeowners or renters install systems such as home alarms, smoke alarms, and deadbolts on doors and windows. Many insurers will require these systems as a minimum level of assurance.

A good home security system can both reduce your premiums and increase the chances of a successful claim. Don’t wait until your home becomes a target, book a quote appointment with your local security company today.

Ref

Costs of Crime 2008 Australian Institute of Criminology https://aic.gov.au/publications/cfi/cfi169