Home Insurance Articles
How Installing A Fire Alarm Could Earn You Home Insurance Discounts
2010-01-19
Home insurance, also referred to as homeowner's insurance (HOI) or hazard insurance, is a type of insurance that covers private homes and the property contained within them against a wide variety of situations, including damage and theft. HOI policies also typically cover claims for personal injuries that occur on insured property in addition to liability insurance against accidents. Because having home insurance is a requirement in virtually all mortgage agreements, approximately 95% of U.S. homes carry insurance policies.
According to the U.S. Fire Administration, every year in the United States fires are responsible for thousands of deaths, tens of thousands of injuries, and billions of dollars in property damage. Due to the possible catastrophic damage that fires can do to homes, property, and persons, having fire insurance is a chief concern for homeowners. Naturally, if a property is less likely to have something bad happen to it and have a claim filed then insurers will charge less to protect the property from these eventualities. By making your home safer you can take advantage of a wide variety of discounts offered as incentives by insurers.
One popular way to earn a home insurance discount is to install a fire alarm, which reduces the likelihood of a fire damaging or completely destroying the home and its contents. There are two basic types of alarm systems: monitored systems and unmonitored systems. Both types of systems make use of smoke and heat detectors that provide audible or visual feedback (sirens or flashing lights) to alert those in the home of fires. Monitored systems are tied directly to a security company that will remotely detect when your alarm has been triggered and will immediately dispatch the fire department to the property and contact the homeowner. Unmonitored systems are not watched remotely and rely on the homeowner to contact emergency services. The benefits of a monitored system include faster response from the fire department and police, however, these systems are more expensive to install and typically require contracts with monthly or yearly fees.
The benefits of having a fire alarm cannot be denied. In addition to the safety provided, it is estimated that a security system with fire protection can save a homeowner 15-20% on a home insurance premium through discounts. Over time, the cost of installation and service monitoring for these systems can be partially or completely offset by the discounts provided on your HOI premium. Similarly, equipping your home with fire extinguishers and sprinkler systems will yield similarly steep discounts to your premium in addition to granting peace of mind gained by knowing that you, your family, your property, and even your home itself is safe.