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
Loss Prevention
- 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
It’s nice that you pointed out how modern home security systems could be equipped with a multitude of home automation features which could result in thousands of dollars of savings over time. We are now trying to improve our house and we are thinking of adding a home security system to it. Security is very important so I know it is going to be worth it.
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I had no idea that burglars are at least 3 times less likely to steal from your home if you have a security system set up. My brother is interested in installing an alarm system in order to protect his house while he and his children go on vacation this summer, but he needs to find one that makes loud noises since he doesn’t have any neighbors that live close to him. I hope that he can find a way to deter trespassers while he is away.
Adding a home security system sounds like a great idea. I love how you said that modern systems often include home automation, which would be awesome. If we got one of those, we’d get home security and home energy efficiency! That would be a win-win.
I would never have guessed that a home security system could have economic benefits as well. It was interesting to learn that a home security system can help to reduce energy bills since they allow you to control your lighting when you are away from home. I can imagine how helpful a home security system can be when it comes to making a home more attractive when it is being sold.
Yes, there are many benefits creating a “smart home” with an integrated security and home automation system. Our Best Home Security Companies can help save energy and money as well.Best Home Security Companies
I never would of guessed that having a home security system could have so many economical benefits. Thank you for explaining that “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.” My parents installed a home security system in their home last summer and it really helped them to control their energy bill even when they were not home.
Thank you for sharing, Rockford. It is great to hear that your folks are really taking advantage of some of the benefits of owning a security and home automation system. So many people just think of them as “burglar alarms”…and don’t realize all the other benefits of owning a home security system.
Mike, you make a good point about how investing in a home security system can be written off on your tax form. I didn’t realize that an alarm system can be considered a capital improvement. Aside from offering protection for you and your family, it seems like there are a lot of great financial benefits to installing a home security system.
Couldn’t have said it better myself. A lot of companies claim pretty significant energy savings with the home automation equipment as well. Thanks for visiting.