Home security system

Even when homeowners think they live in a safe neighborhood, they could be at risk for a burglary. If they find their possessions missing or damaged after a burglary, homeowners could file a claim with their insurance company. However, after experiencing a home theft several times, homeowners could see their insurance premiums rise.

The chance of a burglary is high. There were more than 2.1 million burglaries in 2012, the equivalent of one burglary every 15 seconds, according to alarm.org, run by the Electronic Security Association.

By installing a home security system with burglar alarms, homeowners can deter thieves from breaking into their homes. Alarm.org stated 90 percent of convicted burglars said they would avoid homes with alarm systems.

With the frequency of home theft, homeowners should consider whether a security system is worth it, not only to protect their belongings, but also save on insurance.

Here are five ways to reduce insurance costs with a security system:

1. Boost home safety
Insurers may provide a discount on insurance premiums if homeowners have a security system, which can help increase home safety. The decrease in incidents that could result in damaged properties could show insurance companies that homeowners are less of a risk and could qualify them for discounts.

2. Save up to 20 percent on insurance premiums
Homeowners could see their insurance premiums drop up to about 15 to 20 percent if they install a comprehensive home security system, according to the Insurance Information Institute. Not only can they reduce their insurance costs, they can also save money on buying these security systems if they ask about discounts.

3. Lower risk of cost hikes
To avoid higher insurance costs, homeowners should make sure that they carefully read their policies. Home insurance companies may decide to increase the limit of homeowners' deductible in case a burglary occurs, according to The Simple Dollar.

4. Reduce theft claim quota
Security systems can also help save neighbors money by limiting the total theft claim quota. The Simple Dollar recommended homeowners ensure their neighborhood has not reached their theft claim quota, or the number of thefts within a certain area.

5. Install system with other safety features
Additionally, homeowners can also look for other safety features to lower their insurance premiums. These include smoke alarms and deadbolts, according to III. The combination of a security system and other ways to protect their home could save them the stress of worrying about safety and money.

CoverHound specializes in online search tools to save on homeowners insurance.

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