Can I Get a Discount on Home and Content Insurance for Having Security Alarms?

Security alarms allow for your home to be better protected in the case of a break-in. They range from an onsite siren to being monitored by a third-party security company. Some insurers in Queensland offer incentives and cheaper home and contents premiums for homeowners who have installed a security system. Some insurers may require a security system as part of your quote or require that your existing system be maintained in working order. So which insurers offer a discount?

Disclaimer: The following data is all collected as of 19/09/2023 from each insurer's prospective Product Disclosure Statment (PDS) policies that will be linked to this article. It is also generalised information and insurers PDS policies should be checked for exact details.

So what do they offer?

36 of Queensland's largest insurers were surveyed to see what benefits they offer their customers for having a security system. Of those 36, only 12 offered some form of benefit for having a security system. 10 of those 12 do not specify what discount they apply only that they consider it when calculating your premium. The other two offered explicit values to their discounts for customers who have security systems installed. These are as follows:

RACQ: Offers up to a 10% discount however the alarm system has to be monitored 24/7. Alltronic Security and Electrical offer Back to Base alarm monitoring if you need 24/7 monitoring of your security systems.
BOQ: Offers up to 8% off your premium for every year you have sensors installed however you have to use their Honey Sensors. They do however offer up to $250 worth of discount for the sensors as part of your quote.

The other 10 of those insurers only stated that a security system was something they considered and not how much it would affect your premium. They are the following:

Budget Direct
Sure Insurance
Bendigo Bank
CGU
Virgin Money
Australia Post
ING
Elders Insurance
Qantas Insurance
Coles Insurance
Queensland Country Bank

However, most insurers surveyed offered some form of coverage for security call-out fees.

Alarm Installation

Call out Fee Coverage

Some of the insurers surveyed also offered callout fee coverage with most covering a set amount of the fee for a security firm response to your home. Of the 36 insurers surveyed 17 of them offered some form of coverage on some if not all of their home and contents insurance packages. The following is a list of these insurers and what they offer:

Westpac: Offers up to $500 for call-out fees
BOQ: Offers up to $750
Allianz: Offers up to $500
QBE: Up to $1,250
RACQ: Up to $750
Elders Insurance: Up to $2,500 on Accidental Damage Cover and up to $2,000 on Insured Events Cover
Australia Post: Up to $1,250
Queensland Country Bank: Up to $1,000
Bendigo Bank: Up to $1,000 for Gold and Silver Covers but offers no coverage for Bronze Covers.
CGU: Up to $1,000 for Premium and Quality Cover but offers no coverage for Basic Cover
Suncorp: Up to $2,500 for Classic Advantages Cover
GIO: Up to $2,500
Teachers Mutual Bank: Up to $500
Australian Unity: Up to $500
Beyond Bank: Up to $500
Police Credit Union: Up to $500
St. George Bank: Up to $500

Some Of these insurers also have other restrictions on how that money can be claimed so check your insurer's PDS for further details. Some of the insurers surveyed also have exclusions around whether your security systems are operating and in good condition.

Ensuring Your Security System is Maintained and in Working Order

From the insurers surveyed the majority had clauses in their PDS policies around whether a security system that you have told them is on your property. These policies look at whether the security system is:

Installed on the property
Is functioning
Has not been disconnected
Or affected by a cyber attack

At the time of a break-in or theft from your property. Of the 36 surveyed 28 of them had an exclusion that they wouldn't pay claims or you weren't covered if the following occurred:

The following insurers won't cover you If your security system is affected by a cyber attack during a break-in or theft however you will be covered if a break-in or theft occurs after your security system is affected by a cyber attack.

NRMA
ANZ
Queensland Country Bank
Bendigo Bank
CGU

Coles Insurance: also includes the previous exclusion and adds a clause where they will not cover you if you do not activate all security systems when you leave the house and a break-in occurs.
If you told the following insurers that you had a security system they will not cover if the system is not installed or if it is disconnected or not working in the event of a break-in or theft.

Shannons
Qantas Insurance
Budget Direct
AAMI
Suncorp
GIO
APIA
ING
Virgin Money

The following will not cover you if your security systems have been affected by building works such as renovations.

AHM
Real Insurance
Australian Seniors
Everyday Insurance
Bupa
Huddle Insurance

The following will not cover you if you have disconnected or removed a security system you told them you would have or a system they required you to install:

Westpac
Allianz
Teachers Mutual Bank
Australian Unity
Beyond Bank
Police Credit Union
St.George Bank

This is generalised data from information found in each insurer's clauses and may change insurer to insurer so check your insurer's PDS policy for exact policies. Alltronic Security and Electrical offers security alarm and camera repairs and servicing to ensure that your security systems are operating when you need them most. They also offer installations and monitoring of your alarm systems to keep your home protected and help defend against any potential break-ins.

Security System Installation and Maintenance

List Of Insurers Surveyed and links to their PDS policies: