Protective device discount

A protective device discount lowers your premium when the home has equipment that reduces the chance or size of a loss. Common qualifying devices are a centrally monitored burglar alarm, a monitored fire alarm, a sprinkler system, smoke detectors, deadbolt locks and, with some companies, automatic water shutoff valves or leak sensors. Credits are generally larger for systems tied to a monitoring center than for a battery detector, and sprinklers often earn the most. Amounts vary by insurer and state.

You report the device at quote or renewal, and many insurers ask for proof, such as a monitoring company certificate, an installer's receipt or an inspection. Say a monitored alarm earns 5% off a $2,100 premium (hypothetical): that is $105 a year, which might offset part of the monitoring fee. The insurer can remove the credit if the monitoring contract lapses.

Common mistakes are assuming a doorbell camera or unmonitored smart device qualifies when the insurer's list is narrower, forgetting to send the certificate after installation, and buying a system for the discount alone, since the savings may not repay the cost. Ask your agent which devices count before you buy. See the security system discounts guide and the leak sensors guide, and compare the mitigation credit.