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Security systems, smart devices and discounts
Which alarms, sprinklers and smart-home devices earn homeowners insurance credits, what proof insurers want and if the discount ever pays for the equipment.
Most homeowners insurers give a credit for smoke and fire alarms, burglar alarms, sprinkler systems and, increasingly, connected devices that send alerts to your phone. The biggest credits go to centrally monitored alarms and sprinklers, the smallest to a lone smoke detector or deadbolt, and the discount rarely covers what the equipment costs. Buy the system for the protection it gives, then make sure your insurer knows about it.
What insurers are rewarding
A protective device discount is a rating credit for something that makes a loss less likely or less severe. Insurers care most about the claims that cost them the most. The Triple-I's ISO data for 2019 through 2023 shows why fire devices matter more than burglar alarms: fire and lightning claims were rare, at 0.23 per 100 house-years, but averaged $88,170, while theft claims were 0.12 per 100 house-years and averaged $5,524 (Triple-I; the data exclude Alaska, Texas and Puerto Rico). Water damage and freezing sat in the middle at 1.50 claims per 100 house-years and $15,400 a claim. That mix is why newer programs focus on fire and water sensors as well as break-in alarms.
A credit usually applies to the peril the device addresses, so a burglar alarm may reduce only the theft portion of the premium. Nationwide, for instance, says its smart home discount applies to fire, theft and water coverages. Ask what part of the premium a credit touches before you count on a figure.
Devices, and how insurers tend to treat them
| Device | What it addresses | How it tends to be credited | Proof an insurer may ask for |
|---|---|---|---|
| Smoke and heat detectors | Fire | Small credit, often expected as a baseline | Usually your statement |
| Local burglar alarm (siren only) | Theft | Small credit | Installer or alarm company letter |
| Centrally monitored burglar or fire alarm | Theft, fire | Larger credit than a local alarm | Current monitoring certificate |
| Automatic sprinkler system | Fire | Often the largest fire credit | Installer's certificate or inspection |
| Deadbolts, gated community | Theft | Small, and not offered by every insurer | Your statement or community address |
| Connected devices (hubs, sensors, cameras) | Fire, theft, water | Varies; some insurers credit only devices that alert you to a specific event | Device receipt and app screenshot |
| Electrical-fire and water-leak sensors | Fire, water | Varies, sometimes free from the insurer | Activation confirmation; see water leak sensors and shutoff valves: discounts and value |
The Texas Department of Insurance lists a monitored burglar or fire alarm system and a sprinkler system among the discounts Texans may find, and says each company decides the amount (TDI consumer guide).
What the discounts look like
Figures differ by company and state, and this is what some of them say.
- Triple-I general guidance: at least 5% for a smoke detector, burglar alarm or deadbolt locks, and as much as 15% to 20% at some companies for a sprinkler system combined with a fire and burglar alarm that rings at a monitoring station (Triple-I, an undated page).
- Travelers lists a protective device discount for smoke and fire alarms, interior sprinklers and home security systems, and includes "smart or connected home technology, which alerts the customer that a fire or burglar event is occurring." It gives no percentage, and says discounts depend on underwriting criteria and state availability.
- Nationwide offers eligible homeowners a free Ting electrical-fire sensor and a free LeakBot water-leak detector. Its page states a 10% discount for water and theft and 5% for fire in California, and 5% on all perils in Washington; elsewhere it gives no figure. The device must be activated within 55 days of enrollment or the discount is removed, and the program is not offered in several states (Alaska, Hawaii, Louisiana, New York and Oklahoma are listed). Nationwide says the data collected will not be used to deny a claim.
- USAA lists up to 8% through its Connected Home program for sharing data from smart leak and smoke devices, and a protective device credit of up to 5%. Connected Home is offered only in select states, and in most states the two credits are not combined.
- Amica Mutual Insurance says its smart home program gives a larger discount when a device is monitored by a third party rather than only by you.
- American Family Insurance and Kin Insurance list smart-home credits (American Family calls its credit Safe, Secure, Smart Home; Kin names alarms and automatic water shutoff valves).
- State Farm says home security discounts are not available in all states and may require an eligible non-tenant homeowners policy.
- PURE Insurance supplies Ting electrical-fire sensors and LeakBot and Flume water sensors to eligible members as loss prevention rather than as a discount.
These are the insurers' published offers as of October 2026. Programs open and close, and an offer on an insurer's marketing page may not be filed in your state.
Does the discount pay for the system?
Usually not. Say a home carries a $2,400 premium and a monitored alarm earns a 5% credit on the whole premium, or $120 a year. If the system costs $30 a month to monitor, that is $360 a year. The discount covers about a third of it. If the credit applies only to the theft portion of the premium, it is smaller still. These numbers are hypothetical.
That arithmetic changes in three cases. When the insurer gives you the device free, there is nothing to pay back. When you already own the equipment and have never reported it, a call to the insurer costs nothing. And when the device prevents a loss, which no discount can price. A water sensor that catches a failed supply line in an hour rather than a weekend saves a water claim, a deductible and a claims-history entry. Run your own numbers with the roof and mitigation upgrade payback calculator.
The fine print
Monitoring has to stay active. A centrally monitored alarm earns its credit only while the monitoring contract is in force. If you cancel it, tell your insurer. Keeping a credit for a system you no longer have can be treated as a misrepresentation, and the savings are not worth that risk.
Data comes with some programs. Some credits require you to share device data with the insurer or with a third party. Find out what is collected, how long it is kept and whether it can be used in underwriting or at renewal. your data and your home insurer: privacy rules covers the rules, and smart home technology and insurers looks at how insurers use the information.
Activation deadlines and eligible lists. Programs often name approved devices and set a deadline. A device that is unplugged, never paired or lacks a connection may not count. Keep the confirmation email.
Not every camera qualifies. A doorbell camera or an indoor camera records but does not necessarily alert or deter in a way the insurer's filing recognizes. Ask whether your device is on the list rather than assuming.
A discount is not coverage. An alarm does not change what the policy pays after a break-in. Theft limits and exclusions are the same; see theft and burglary claims under a homeowners policy and fire and smoke damage: how homeowners insurance responds.
How to claim the credit
- Ask your agent or the insurer's service line which protective devices and smart-home programs are filed in your state, and what each is worth.
- Gather proof: a monitoring certificate with your name and address, a sprinkler installer's letter, or an activated-device screenshot.
- Send it, and ask whether the credit starts now or at renewal.
- Get the change confirmed on your renewal offer or declarations page.
- Recheck at each renewal. Devices, monitoring contracts and insurer programs all change.
Key takeaways
- Monitored alarms and sprinklers earn the largest credits; a lone detector or deadbolt earns the least. Connected-device credits vary by insurer and state.
- Fire and water devices guard against the costliest and most frequent claims; burglar alarms address a rarer, cheaper loss.
- The discount seldom covers the cost of monitoring, so buy the system for protection and then claim the credit.
- Ask what the credit applies to, what proof is needed and whether the program shares your data.
- Tell the insurer when you cancel monitoring or remove a device.