Most people install a security system to protect their home and family and gain peace of mind, but there are number of economic benefits of a home security system, which may make it an even more attractive proposition. For some people, it is all about the numbers, so here are some financial considerations to consider if you are doing a cost-benefit analysis.
The Top 5 Economic Benefits of a Home Security System
- Lets take a look at the financial implications of a burglary or break-in. According to 2009 FBI statistics, there were over 4.6 Billion in property losses due to burglaries, with the average break in resulting in $2,096 in losses. Homes with professionally monitored security systems are 3 times less likely to be targeted.
- According to the National Fire Prevention Association, in 2010, there were over 1.3 million fires resulting in $11.6 billion in property losses due to residential fires-with the average loss per structure of $20,158. Early smoke or fire detection and immediate response can save lives and minimize property losses.
- It is estimated, by FloodSmart.gov, that a mere one inch of flooding to a 2,000 square foot home will result in homeowner losses of $20,920. Security systems can be equipped with low temperature sensors and flood sensors to protect against the possibility of frozen pipes and detect rising water- providing real time alerts to enable you to take proactive steps to mitigate damages.
Reduce Energy Bills
Modern home security systems can be equipped with a multitude of home automation features which can result in thousands of dollars of savings over time. One can reduce electicity costs by controlling lighting, as well as heating and cooling of the home. It is estimated that $180 a year can be saved in the average home by using a programmable thermostats-which can be integrated into your home security system.
Save on taxes
While I am in no way offering tax advice, a home security system is normally considered a “capital improvement” on a home. If you make such an improvement you can add the cost to your home’s adjusted cost basis at the time of sale. This reduces your capital gain and, therefore, your capital gains tax when you sell your home.
In addition, monitoring fees are typically eligible for treatment as a deductible business expense. If you are running a business out of your home, this may also true for that portion of the system that is protecting the “business area.” (See your accountant for advice concerning your particular situation.)
Lower Insurance Costs
Insurance companies know that monitored security systems help prevent losses. In fact, a home with a security system is 3-4 times less likely to be burglarized than a home without a system. So most insurance carriers offer discounts on insurance premiums when you install or upgrade a security system.
Depending on the type of system installed, this can mean savings of 5% to 20% or even more on your premiums. For maximum discounts, make sure that you let your agent know about any fire and environmental hazard protection(low temperature, CO, flood sensors) that was installed with your system. Your security company should provide a certificate to verify the level of protection your system provides.
Real Estate Benefits
As most agents will tell you, installing a home security system will increase the property value . Most home buyers recognize the intrinsic value of the home security system. In addition to the dollar value, it is also a sign that the previous owner was conscientious and took prudent steps to protect the home and family.
In many cases, it also can help the home sell more quickly. For some, it is on the list of “must haves”….especially when moving into an unfamiliar neighborhood. In addition, many buyers are looking for some of the “bells and whistles” provided by modern home security systems with Touch Screen interfaces, Interactive capabilities and Home Automation features.
Although the “peace of mind” one gains by installing a professionally monitored home security system can’t be measured….there are a number of economic benefits of owning a home security system that can be quantified.
While it used to costs thousands to have a home security system professionally installed, today’s wireless security systems are easy to install and make it affordable for almost anyone to protect their apartment or home and family.
To see how affordable home security systems can be, check out our Top Alarm Companies.
Thank you for visiting. Feel free to comment or leave feedback on the Economic Benefits of a Home Security System…or share your ideas on how owning a security system can help you save money, below.
Last Updated on August 27, 2020 by The Home Security Advisor