Homeowners who choose to install state-of-the-art electronic security systems often do so for peace of mind. But there’s another advantage: a home security system could deliver a direct financial return by way of insurance savings. By installing a security system and paying for professional monitoring, you might actually save money on your homeowners’ policy.
Savings vary by company, but it is not unusual to save 5-20%. Just know this: insurance companies do not take their customers’ word for it. In order to claim a discount, a homeowner usually has to produce an alarm certificate.
What Is an Alarm Certificate?
An alarm certificate is an official document issued by a home security provider, like Vivint Home Security. It is sometimes formally known as the Alarm Monitoring Certificate or Certificate of Installation. It serves as legal proof that a home is equipped with an active, functional, and connected system.
While certificate details vary by provider, a standard certificate usually includes the following:
- Account holder details, including name, property address, and account number.
- System features and capabilities. Think things like burglary/intrusion detection, smoke/CO detection, etc.
- Confirmation that the system is connected to a professional monitoring center.
- The system’s installation and activation dates.
Professional monitoring is the tricky part. It could be hard to get a certificate from a company that provided equipment but does not offer monitoring. If you’re self-monitoring, it is completely off the table anyway.
Do Homeowners Need Them?
Although local municipalities sometimes require homeowners to obtain alarm certificates, the primary purpose of a certificate is to demonstrate eligibility for an insurance discount. That tells us a lot about the types of homeowners who need them.
Insurance carriers are willing to offer discounts on home security systems under the assumption that monitored home security reduces their risk. But before underwriters can apply discounts, they need proof. An alarm certificate serves as that proof. As for who needs one, there are four groups of people:
- Homeowners who want to save money on their annual premiums.
- Tenants whose renter’s insurance covers personal property.
- Homeowners or renters switching their insurance carriers.
- Homeowners or renters upgrading their current security setups.
All of this assumes that you’re using a security system from a company like Vivint. Your system was professionally installed and is monitored around the clock. Providers like Vivint can provide certificates upon request, but what if you’ve built your own system and monitor it yourself? You may be out of luck. Check with your insurance carrier.
How Do I Get an Alarm Certificate?
Getting an alarm certificate should not be difficult if you have a professionally installed and monitored system. You also shouldn’t have a problem with a DIY system that is professionally monitored. The monitoring provider can handle the details.
All you need to do is contact your security provider and tell them what you need. They will prepare the document and send it either to you or your insurance carrier. Make sure you verify the details regarding your name and address before the document is prepared.
If you’re operating a DIY system that you monitor yourself, you’ll have to contact your agent or carrier to see what they say. Not all insurers consider DIY systems eligible for discounts. Those that do will most certainly have documentation requirements.
Consider It an Annual Insurance Bonus
It wouldn’t make sense not to claim an insurance discount if your security system is eligible for one. So if you need motivation, think of the discount as an annual insurance bonus. Just like a bonus from work, it represents money you can put into more important things.