7 Security Upgrades That May Lower Your Insurance Premiums
Last Updated: November 1, 2026
Quick Summary
Reducing insurance premiums through security upgrades works only when your insurer's underwriting rules credit that specific control, and property and cyber policies credit completely different things. Confirm the credit in writing before you buy, since no upgrade guarantees a discount.
Cyber policies reward MFA and endpoint detection, while property policies reward monitored alarms, deadbolts and cameras.
Underwriters commonly ask for evidence dated within the last 12 months, and some carriers re-verify at renewal.
Call your insurer before buying anything and get the qualifying requirements in writing.
Monitored alarm discounts typically require 24/7 professional monitoring, not DIY app alerts.
Divide annual cost by the confirmed annual credit to check payback before you buy.
Table of Contents
How Security Upgrades Can Affect Insurance Premiums
Reducing insurance premiums through security upgrades is possible, but it works differently than most homeowners expect. The share of insurance clients opting into cyber coverage rose from 26% in 2016 to 47% in 2020, according to the U.S. Government Accountability Office report on cyber insurance trends.
Here is the core tension. A security upgrade can lower your premium, but only if your insurer's underwriting rules credit that specific control. Buy the wrong hardware and you have spent money for zero premium relief.
Below, we break down which upgrades insurers actually assess, how to ask for credits, and how to prioritize spending by risk and payback.
Cyber vs. Property Insurance: What Each One Credits
Cyber insurance covers data breaches, ransomware, and network attacks. Property insurance covers physical damage, theft, and fire.
Cyber policies reward digital controls: multifactor authentication, endpoint detection, and incident response plans.
A common mistake is assuming a new alarm system lowers a cyber premium. It does not.
The GAO reports that some insurers reduced coverage limits or raised premiums for higher-risk organizations (GAO analysis of cyber insurance availability).
Policy Type | Controls That Typically Count | What It Does Not Credit |
Property | Monitored alarms, deadbolts, cameras, door hardening | Software, MFA, endpoint tools |
Cyber | MFA, endpoint detection, incident response plans | Locks, alarms, cameras |
Business (general) | Loss prevention, documented risk management | Consumer-grade DIY devices |
Security Controls Insurers Commonly Assess
Insurers do not credit controls they cannot verify.
The controls below are the ones that show up most often in property and cyber underwriting questionnaires.
Control | What Insurers Typically Look For | Evidence That Usually Satisfies Review |
Monitored burglar alarm | 24/7 professional monitoring, cellular or backup power, dispatch to a central station | Monitoring contract, central station certificate, alarm permit where required, recent signal test |
Security cameras | Coverage of entry points and high-value areas, retained footage | Camera map or photos, retention settings screenshot, maintenance log |
Deadbolts and door hardening | ANSI/BHMA-rated deadbolts, reinforced strike plates, solid-core or metal doors | Photos of installed hardware, product spec sheets, installer invoice |
Multifactor authentication | MFA enforced on email, remote access, and privileged accounts | Identity provider admin screenshot showing enforcement and coverage percentage |
Endpoint detection and response | EDR deployed on all endpoints, alerts monitored | EDR console screenshot showing agent coverage and alert routing |
Patch management | Documented cadence and exception process | Patch policy document, recent patch compliance report |
Employee training | Documented phishing and safety training with completion records | LMS completion report, training policy, sample phishing simulation results |
Incident response | Written plan with named roles, contact tree, and recovery timeline | Signed IR plan, tabletop exercise notes, last review date |
Two patterns matter more than any single row. First, the control must match the policy type. A monitored alarm is a property control; it will not move a cyber premium.
Second, the evidence must be current.
Pro Tip Build a single "insurance evidence folder", digital or physical, with one subfolder per control. When your broker or underwriter asks, you send the folder, not a scavenger hunt. This alone shortens underwriting cycles and reduces the chance a credit is dropped for missing paperwork.
Multifactor Authentication and Access Control
Multifactor authentication is a login method that requires two or more proofs of identity, such as a password plus a phone code.
On the physical side, access control means electronic locks, card readers, and keypad entry.
A common mistake is installing access hardware without integrating it into a documented system. Insurers and auditors want to see who has access, when, and how it is revoked.
Threat Detection, Endpoint Protection, and Incident Response
Automated threat detection and endpoint detection and response tools catch attacks before they become claims.
An incident response plan is a written procedure for detecting, containing, and recovering from a security event.
Recovery readiness matters as much as prevention. A business that can restore systems fast files smaller claims.
Three controls insurers commonly review:
Endpoint detection and response deployed on all devices
Automated threat detection with alerting
A tested incident response plan with a recovery timeline
The GAO notes that rising cyber threats have pushed premiums up and availability down (GAO on cyber insurance market pressure).
How to Claim a Home Security System Insurance Discount
A home security system insurance discount is a premium credit insurers give when a home has verified protective devices, usually a monitored alarm or cameras. The discount is not automatic.
Here is the process we recommend:
Call your insurer before you buy anything.
Ask which specific systems qualify for a credit.
Get the requirements in writing, including monitoring terms.
Install the system and keep every receipt and contract.
Submit proof and request the discount in writing.
Confirm the credit appears on your next policy statement.
Watch out: buying a system first and asking questions later is the most common way homeowners lose the discount. Some insurers only credit systems with professional monitoring, not self-installed devices.
The Monitored Alarm Insurance Discount: What Qualifies
A monitored alarm insurance discount typically requires 24/7 professional monitoring, not just a siren. Insurers want a third party watching for signals and dispatching help.
What usually qualifies:
Professionally monitored burglar alarms
Monitored smoke and fire detection
Systems with backup power and cellular backup
Contracts showing continuous monitoring
What often fails to qualify:
DIY alarms with app alerts only
Unmonitored cameras
Systems with lapsed monitoring contracts
Discount amounts vary by insurer, property, and policy. Ask your insurer directly.
Deadbolt Lock Insurance Discounts and Door Hardening
A deadbolt lock insurance discount is a credit some insurers offer for hardened entry points.
Door hardening goes further: metal frames, security hinges, and door reinforcement kits. These controls reduce forced-entry claim risk, which is exactly what property underwriters care about.
If you are weighing lock hardware, our article on the benefits of upgrading to smart locks covers convenience, access tracking, and how smart locks compare with traditional deadbolts.
One honest limitation: lock discounts are smaller and less common than alarm credits. Ask before you assume.
How to Ask Your Insurer About Security Discounts
Knowing how to ask your insurer about security discounts is half the battle. Insurers respond to specific, documented requests, not vague questions.
Use this script:
"I am adding [specific control] to my property at [address]. Does this qualify for a premium credit under my current policy? If so, what documentation do you need, and how is the credit applied?"
Follow up with these questions:
Which controls on my policy qualify for credits?
What proof do you require: receipts, contracts, photos, or inspection reports?
Does the credit renew each year or require re-verification?
Will the upgrade affect my coverage limits?
Before that call, it helps to know whether inspections and maintenance are covered at all. Our article on whether home insurance covers preventive maintenance inspections explains what carriers typically reimburse.
The National Association of Insurance Commissioners notes that premiums are rising and discusses ways to lower costs, but it does not promise that any single upgrade earns a discount (NAIC guidance on rising premiums).
Prioritizing Upgrades by Risk, Budget, and Payback
Most owners sequence security spending by what a salesperson recommends or by the largest advertised discount. A better sequence starts with the claim most likely to happen, then layers in the controls your insurer will actually credit, then checks whether the math works.
Tier 1: Low-cost controls to do first (days to weeks)
These are cheap, fast, and often improve both risk and insurability:
Reinforce every exterior door with ANSI/BHMA Grade 1 or Grade 2 deadbolts, reinforced strike plates, and 3-inch screws into the framing. Hardware cost is modest; the risk reduction is immediate.
Add exterior lighting at entries, driveways, and dark corners. Motion-activated lighting is inexpensive and shows up in property underwriting questionnaires.
Turn on MFA everywhere it is free, email, remote access, and administrator accounts first. Most identity providers include MFA at no extra cost.
Write a one-page incident response plan with names, phone numbers, and a recovery order. A written plan costs nothing but time and is a standard cyber underwriting item.
Tier 2: Monitored detection and documented cyber controls (weeks to months)
These carry the strongest credits but also recurring costs:
Professionally monitored alarm with cellular backup. The recurring monitoring fee is the real cost; the hardware is secondary. Confirm the central station and certificate before signing.
Camera system covering entries and high-value areas, with a defined retention window.
Endpoint detection and response on all endpoints, with alert routing to a monitored inbox or SOC.
Patch management policy with a documented cadence and exception log.
Tier 3: Capital upgrades (months to a year)
Door and frame hardening on the highest-risk entries.
Access control systems with audit logs and revocation workflows.
Tested incident response exercises and tabletop drills.
How to check payback before you buy
Payback is a simple comparison, not a guarantee:
Get the credit confirmed in writing first. Ask your insurer or broker for the specific credit amount or percentage that applies to the exact control you plan to install. Do not accept "it should help."
Add up the true cost. Include hardware, installation, the recurring monitoring or subscription fee, and any maintenance. A $0-hardware alarm with a monthly monitoring fee has a real annual cost.
Divide annual cost by confirmed annual credit. If the credit is smaller than the recurring cost, the upgrade may still be worth doing for risk reasons, but it is not a premium-saving move, and you should know that before you buy.
Re-check at renewal. Credits can change when the policy renews, when the carrier re-underwrites, or when the control's evidence goes stale.
Watch Out No upgrade guarantees a discount. Underwriting can override any single control, and some carriers reduce credits or raise base rates even when controls improve. Treat any projected savings as unconfirmed until it appears on a policy statement.
A realistic sequencing rule
If you have a limited budget, spend in this order: (1) fix obvious vulnerabilities that a claims adjuster would flag, (2) add the monitored or documented control your insurer names in writing, (3) harden entry points, (4) document everything, and (5) re-shop the policy annually.
If you want to avoid spending on upgrades that will not pay back, read our guidance on avoiding unnecessary security system upgrades. It covers how to separate real risk from sales pressure.
Frequently Asked Questions
Can security upgrades lower homeowners insurance premiums?
Sometimes, but not automatically. Insurers price policies on overall risk, and a monitored alarm, deadbolts, or cameras may earn a credit if the carrier lists them. Premiums are rising broadly, and no single upgrade is guaranteed to earn a discount. Confirm eligibility and the exact savings with your insurer before you buy, and get any credit in writing on your declarations page.
Which home security systems may qualify for an insurance discount?
Carriers usually credit professionally monitored systems that signal a central station, not self-installed cameras alone. Ask whether your policy requires UL-listed monitoring, a specific certificate, or proof of a contract term. A home security system insurance discount is typically a small percentage of the premium, so compare the annual savings against the monitoring fee before committing to a multi-year plan.
Do monitored alarm systems reduce homeowners insurance costs?
A monitored alarm insurance discount is one of the most common credits offered, but the amount varies by insurer, property, and policy form. The credit often ranges from a small percentage of the premium and may require a certificate of monitoring from your provider. Send that certificate to your agent and ask for the discount to be applied at renewal, then check the declarations page to confirm it appears.
Will my premium go down automatically after an upgrade?
No. Insurers do not monitor your property, so a new deadbolt lock insurance discount or alarm credit applies only after you report it and supply documentation. Call your agent, describe the upgrade, and ask which forms or certificates they need. If the credit is denied, ask why in writing. You can then decide whether the upgrade still makes sense for loss prevention, recovery readiness, and business continuity rather than premium reduction alone.
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