A home security insurance discount typically ranges from about 5% at the low end to as much as 15% to 20% for a professionally monitored alarm, according to the Insurance Information Institute. The catch is the fine print: the biggest credits require an alarm that reports to a UL-listed central station, and your insurer will ask for a certificate proving it.
That's why two neighbors with "security systems" can get very different discounts. One has a DIY camera and earns a small device credit. The other has monitored professional service and earns the full alarm discount. This post breaks down the real ranges, what insurers actually require, why DIY often misses the full credit, and how to get the monitoring certificate that unlocks the savings. No guesswork, just what qualifies and what doesn't.
How big is the home security insurance discount, really?
The numbers are smaller than some sales pitches imply, but they're real and they recur every year.
- A basic protective-device credit usually starts around 5%, according to the Insurance Information Institute.
- A centrally monitored fire and burglar alarm can earn up to 15% to 20%. In the III's words, "Some companies cut your premium by 15-20% for a fire and burglar alarm that rings at a monitoring station."
- The discount applies to your premium every year you keep monitoring active, so it compounds over time.
On a typical Triangle homeowners premium, a 15% to 20% credit can offset a meaningful chunk of your monitoring cost. That doesn't make monitoring free, and we won't claim it does. It does mean the real out-of-pocket cost of professional monitoring is lower than the sticker price once the insurance credit is applied.
What insurers actually require to give the full discount
Here's where people get surprised. The full discount isn't for owning equipment. It's for having monitoring that reports to a certified station.
- A monitored alarm, not just cameras. Insurers want a system that signals an alarm event, not only a doorbell that records video.
- A UL-listed central station. The full 15% to 20% credit generally requires that your alarm reports to a UL-listed central monitoring station, per the Insurance Information Institute. UL listing is the industry certification that the station meets response standards.
- Proof, in the form of a certificate. Your insurer will ask for a Certificate of Alarm, sometimes called a monitoring certificate, that documents your system type and the monitoring station.
Miss any of those and you likely fall back to the smaller device credit. The certificate is the piece most homeowners don't know to ask for, and it's the piece that actually moves your premium.
Why DIY often doesn't qualify for the full credit
DIY security is a fine choice for plenty of people, and we say so plainly in DIY vs professional monitoring. But on insurance, DIY usually leaves money on the table.
- Self-monitored and DIY setups typically earn only a 2% to 5% protective-device credit, not the full alarm discount, according to the Insurance Information Institute and Alarm Grid.
- The reason is simple: a DIY system that only pings your phone isn't reporting to a UL-listed central station, so it doesn't meet the requirement for the larger credit.
- Many DIY providers also can't issue the formal monitoring certificate insurers accept, because there's no professional monitoring account behind it.
So the DIY math has two sides. You save on the monthly fee, but you also give up most of the insurance discount. Over a few years, that lost credit can quietly erase the monthly savings. If the insurance angle matters to you, that trade-off is worth running before you decide.
How to get your monitoring certificate
Getting the discount is mostly paperwork, and it's not hard once you know the steps.
- Confirm your monitoring is central-station based. Ask your provider whether your alarm reports to a UL-listed central station. If it only sends phone alerts, it won't qualify for the full credit.
- Request a Certificate of Alarm. A professional monitoring company can issue this document. It lists your address, the system components (burglar, fire, or both), and the monitoring station.
- Send it to your insurance agent. Give the certificate to your homeowners insurer and ask them to apply the monitored-alarm discount to your policy.
- Ask about fire and CO too. Fire and carbon monoxide monitoring can sometimes add to the credit, since insurers care about life-safety and property loss alike.
- Keep it current. If you change systems or move, request an updated certificate so your discount stays valid.
Secur-Tek can provide the monitoring certificate your insurer wants, because your alarm reports to Affiliated Monitoring, a UL-listed central station. Just ask, and we'll issue it.
The cost picture once the discount is applied
Put the pieces together and the value of professional monitoring looks different than the monthly fee alone.
- Secur-Tek's cellular monitoring starts at $31.95 per month, on a one-year term through a UL-listed central station.
- A 15% to 20% homeowners discount (III) offsets part of that cost every year, which a DIY setup earning only a 2% to 5% credit largely can't match.
- The monitoring runs on cellular, so it isn't tied to a phone line or WiFi that could fail, which we explain in cellular vs WiFi alarm monitoring.
The honest limitation worth stating: the discount amount is set by your insurer, not by us, and it varies by carrier and policy. We can't promise a specific percentage. What we can do is give you the UL-listed monitoring and the certificate that make you eligible for the higher end of the range.
Frequently asked questions
How much can a security system lower my home insurance? Usually 5% at the baseline, up to 15% to 20% for an alarm that reports to a monitoring station, according to the Insurance Information Institute. The exact figure depends on your insurer, your policy, and whether your system is professionally monitored.
Why doesn't my DIY camera qualify for the full discount? Because it likely doesn't report to a UL-listed central station. DIY and self-monitored setups typically earn only a 2% to 5% protective-device credit (III, Alarm Grid), since the larger alarm discount requires central-station monitoring and a certificate most DIY services can't issue.
What is a monitoring certificate and how do I get one? It's a Certificate of Alarm documenting your system and monitoring station, which insurers require to apply the discount. Your professional monitoring company issues it. Secur-Tek can provide one because your alarm reports to a UL-listed central station.
Does fire and carbon monoxide monitoring add to the discount? It can. Insurers weigh both burglary and life-safety risk, so a combined fire, CO, and burglar alarm reporting to a central station may qualify for a larger credit than a burglar alarm alone. Ask your carrier how they treat each.
Will the discount cover the cost of monitoring? Sometimes it offsets a good portion, but it depends on your premium and carrier, so we won't promise it pays for itself. What we can promise is UL-listed monitoring at $31.95 per month and the certificate that makes you eligible for the higher discount range.
Get the certificate and claim your discount
If you're paying for a homeowners policy in Apex, Cary, Raleigh, or anywhere in the Triangle, you may be leaving a discount on the table without the right monitoring. Secur-Tek provides UL-listed central-station monitoring starting at $31.95 per month on a one-year term, plus the monitoring certificate your insurer asks for. See how local monitoring works on our home security in Raleigh, NC guide, or start on our home page. Call (919) 387-1800 for a free Triangle security review, and ask us to prepare your alarm certificate.
Secur-Tek has protected Triangle homes since 1990 and is NC ASLB-licensed #SP.FA/LV.15309.