Short answer: yes — most insurers offer a homeowners discount for a monitored security system, commonly in the range of about 5–20% (often 5–10%) on the portion of your premium they apply it to. It usually won’t pay for the system on its own, but combined with deterring break-ins and catching fires and leaks early, it meaningfully offsets the cost. Here’s how the discount works, which devices earn it, and how to claim it in Texas — where premiums run high and every credit counts.
Key takeaways
- Monitored systems typically earn a ~5–20% discount (commonly 5–10%); the exact amount varies by insurer and what it applies to.
- Professional monitoring usually earns more than a self-monitored DIY setup.
- Stack the layers to maximize the discount: monitored security + monitored fire + monitored water/flood protection.
- Water/flood protection has three layers — spot leak sensors, whole-home flow-rate detection, and an automatic shutoff valve — and many insurers now reward (or require) the shutoff valve on higher-value homes.
- You’ll likely need to show proof (a monitoring certificate) to your insurer to get the discount applied.
- The discount rarely covers the whole system cost, but paired with break-in, fire, and water-damage prevention, it adds up.
This is general information, not insurance advice — confirm specifics with your own insurer.
- How much can a security system lower your insurance?
- Which devices actually earn a discount?
- Why this matters more in Texas
- How to stack your discount (the three layers insurers reward)
- How to actually claim the discount
- A note for San Antonio homeowners (and USAA members)
- Other ways to lower your homeowners rate
- Are there downsides to a security system?
- Get monitored protection that earns the discount
- Frequently asked questions
How much can a security system lower your insurance?
The discount varies by insurer, but a monitored system commonly knocks 5–20% off the relevant part of your homeowners premium, with many companies landing around 5–10%. On a typical Texas policy, that’s real money each year — though, as carriers are quick to note, it usually won’t fully pay for the system itself. The bigger financial picture is prevention: a deterred burglary, a fire caught early, or a leak stopped before it floods a room can dwarf the premium savings.
There’s a behavioral reason insurers like these systems, too. In an Alarm Industry Research and Educational Foundation study of convicted burglars, about 60% said they’d move on to a different target if they could tell a home had an alarm. Fewer claims for the insurer means a discount for you.
Which devices actually earn a discount?
Insurers reward devices that prevent or limit a loss — not just anti-theft gear. Commonly credited:
- Monitored burglar alarm with door/window and motion sensors.
- Monitored smoke and fire detectors — often a separate fire-alarm credit.
- Water/leak sensors — catch a burst pipe or failing water heater before it becomes a five-figure claim.
- Freeze/temperature sensors — increasingly relevant in Texas after hard winter freezes.
- Sprinkler systems and, in some cases, video cameras.
The common thread: professional monitoring. A monitored system that can dispatch help (or alert you to a fire or leak while you’re away) is what most insurers want to see — and it typically earns a larger discount than a self-monitored DIY kit that only pings your phone.
Why this matters more in Texas
Texas homeowners pay some of the highest insurance premiums in the country, driven largely by hail, wind, and storm risk. That has two implications. First, a percentage discount on a high premium is worth more here than in a low-cost state. Second, the non-theft sensors carry extra weight — monitored smoke detection, water/leak sensors, and freeze sensors guard against exactly the kinds of losses (fire, water damage, frozen pipes) that drive Texas claims. If you’re shopping a system for insurance reasons, don’t think “burglar alarm” — think “monitored whole-home safety.”
How to stack your discount (the three layers insurers reward)
The single biggest mistake homeowners make is thinking “burglar alarm” when insurers actually reward monitored whole-home safety. You generally earn the most by stacking three layers of monitored protection — and each layer can add to your credit:
1. Monitored security. A professionally monitored burglar alarm with door/window and motion sensors. This is the baseline credit, and professional monitoring earns more than a self-monitored kit.
2. Monitored fire & life safety. Monitored smoke, heat, and carbon-monoxide detection often earns a separate fire-alarm credit — and protects against one of the costliest claims there is.
3. Monitored water & flood protection — where the biggest savings are emerging. Water damage is one of the most frequent and expensive home insurance claims, so insurers increasingly reward (and, on higher-value homes, require) leak protection. The strongest setups use three layers of water defense, and we install all three:
- Spot flood sensors, professionally placed at the highest-risk points — under water heaters, sinks, behind washing machines, near sump pumps — to catch standing water fast.
- Whole-home flow-rate detection (like the Alarm.com “Water Dragon”) installed on your main line. It learns your normal usage and flags abnormal flow — a running toilet, a burst pipe, even “you’re using more water than you’d expect.”
- Automatic water shutoff valves. When a leak or abnormal flow is detected, the valve shuts the water off to the whole house automatically — stopping a burst pipe from becoming a five-figure claim, even when you’re away.
That third layer matters more every year: because of how large water-damage claims have become, many insurers are starting to require automatic shutoff valves on mid- and higher-value homes — and several major carriers pre-approve these systems for premium discounts. Adding monitored water protection with a shutoff valve is often the most overlooked way to increase your discount.
How to actually claim the discount
- Choose a monitored system (professional monitoring earns the best credit).
- Ask your insurer what qualifies and at what discount — and whether they want specific devices (monitored smoke/CO, leak sensors, a flow detector, or a shutoff valve).
- Stack the layers — add monitored fire and the three layers of water protection to maximize the credit (and, on higher-value homes, meet emerging shutoff-valve requirements).
- Get a monitoring certificate from your provider — insurers usually require proof the system is monitored.
- Submit it and confirm the credit is applied to your renewal, and re-check after every upgrade.
A note for San Antonio homeowners (and USAA members)
A large share of San Antonio families are insured by USAA — which is headquartered right here in San Antonio — and many of our customers are USAA members. Carriers like USAA increasingly value exactly this kind of monitored, whole-home protection, especially water and flood detection with automatic shutoff, because it prevents the claims that cost everyone the most. If you’re a local homeowner, it’s worth asking your carrier specifically about credits for monitored leak detection and a shutoff valve — it’s one of the clearest wins available right now.
Other ways to lower your homeowners rate
The PAA “5 ways” question, answered briefly: raise your deductible, bundle home and auto, improve the roof and maintenance (big in hail country), add safety/security devices (this article), and shop and compare carriers. Keep coverage adequate, though — the “80% rule” means insuring your home for at least 80% of its replacement cost to avoid penalties on partial claims.
Are there downsides to a security system?
The honest answer: upfront equipment cost, and — with many national providers — long contracts and a monthly fee that climbs over time. That’s the part the big brands bury. The way to capture the insurance benefit without the downside is a monitored system with no long-term contract and equipment you own, so you get the qualifying monitoring certificate and the deterrent value without locking into years of rising payments. (More on that trade-off in our home security cost guide.)
Get monitored protection that earns the discount
We set up professionally monitored systems that qualify for insurer discounts — monitored security, monitored smoke/fire, and the full three layers of water-damage protection (spot leak sensors, whole-home flow-rate detection, and an automatic shutoff valve) — and we’ll provide the monitoring certificate your insurer needs. All for a flat $19.99/month, no contract, with equipment you own. Get a free quote and we’ll build a system that protects your home, helps trim your premium, and meets emerging insurer requirements.
Frequently asked questions
Most insurers offer roughly a 5–20% discount (commonly 5–10%) for a monitored system, applied to part of your premium. The exact amount varies by insurer, so confirm with yours.
Usually you get a larger discount with professional monitoring than with a self-monitored DIY system, because insurers value a system that can dispatch help or alert a monitoring center to a fire or leak. Most require a monitoring certificate as proof.
Monitored burglar alarms with sensors, monitored smoke/fire detectors, water/leak sensors, freeze sensors, sprinkler systems, and sometimes cameras. The non-theft sensors are especially valuable in Texas.
Typically no — the premium savings rarely cover the system on their own. The bigger value is preventing break-ins, fires, and water damage, plus the peace of mind of monitored protection.
A percentage discount is worth more on Texas’s high premiums, and monitored smoke, water, and freeze sensors guard against the fire and water losses that drive many Texas claims — so the benefit can be meaningful here.
It’s the guideline that you should insure your home for at least 80% of its replacement cost; fall below that and insurers may pay only a reduced amount on partial claims. A security discount doesn’t change the rule — keep your coverage adequate.
Stack monitored layers: a monitored security alarm, monitored smoke/fire detection, and — often the most overlooked — monitored water/flood protection. The water layer alone has three parts (spot leak sensors, whole-home flow-rate detection, and an automatic shutoff valve), and adding the shutoff valve frequently unlocks additional credit.
Increasingly, yes — because water-damage claims are so frequent and costly, a growing number of insurers now require or strongly incentivize automatic shutoff valves on mid- and higher-value homes, and several major carriers pre-approve these systems for premium discounts. Ask your carrier what they require and credit.
(1) Spot flood sensors placed at high-risk points like water heaters, sinks, and washing machines; (2) a whole-home flow-rate detector on your main line that flags abnormal usage; and (3) an automatic shutoff valve that cuts the water to the house when a leak or abnormal flow is detected — stopping a burst pipe from becoming a major claim, even while you’re away.