Does Home CCTV Reduce the Price of Insurance Premiums?

20th July 2016

The main factors that decide the cost of your home insurance will be based on the property location, crime rate in the area, and value of possessions inside. These are the main type of issues that insurance companies look for when offering a policy.

If you’re looking at other ways to reduce your insurance premiums, take into consideration the strength and effectiveness of your home security. One way to achieve this is by investing in CCTV cameras and installing them in effective positions to deter potential break-ins.

To what extent having CCTV will lower insurance premiums is not in itself conclusive, simply because various insurance companies offer different policies. With this in mind, it makes sense to shop around before you both buy a CCTV package and take out an insurance policy.

Effectiveness of CCTV

Numerous studies have been conducted into the effectiveness of CCTV cameras in the fight against crime. Although much depends on the location of the property and building type, the general consensus is that their presence does deter the threat of criminal activity.

According to one American study conducted by the FBI, homes with security systems are three times less likely to be targeted than those without. In another, the Alarm Industry Research and Educational Foundation (AIREF) found that 94% of home alarm owners were satisfied with the increase in home security after installing CCTV.

You can increase the efficiency of cameras by positioning them in prime locations to both deter criminals and capture high-quality images. Likewise, by installing robust, anti-vandal models, or placing them in high areas, intruders won’t be able to disable them.

Saving Money

Although installing cameras may reduce your home insurance, it won’t pay for the entire cost of the installation in the first place. However, by installing an effective CCTV system, the chance of your property being targeted will most likely be reduced – this could save you a vast amount of money in the future.

Essentially, investing in CCTV cameras does make sense financially if you shop around for a good deal and using a reputable supplier.

Insurance companies will take into account other security measures, as well as the presence of CCTV. Purchase effective locks and robust doors that can’t be penetrated easily, along with double-glazed windows and window locks. Having a resilient security plan for when the home is vacant and even joining a Neighbourhood Watch scheme are also looked upon favourably.

Although some suppliers don’t recognise the effectiveness of CCTV alone in preventing crime, what they do acknowledge are systems linked to sophisticated monitoring centres. This is when cameras integrate hi-tech sensors so movement is not only detected but also alerts a fast response team, who themselves can contact the homeowner or the police. Insurance companies can’t ignore the effectiveness of such a system and thus will be more inclined to lower their premiums.

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