Do You Get a Discount on Home Insurance If You Have a Security System?
Yes — and with Texas homeowners paying an average of $4,704 per year for home insurance, the savings a security system can generate are more financially meaningful than most Texans realize. Here is the complete breakdown.
The Discount Range: 5% to 20% Off Your Premium
Installing a home security system can qualify you for a homeowners insurance discount of 5% to 20% — and the exact savings depend on the type and sophistication of the system you install. A basic local alarm system that sounds a siren but does not contact a monitoring center typically earns a modest 2% to 5% discount. A fully monitored smart security system with video surveillance, professional response, and environmental sensors can generate savings of up to 20% — meaning a Texas homeowner paying $4,704 annually could save between $235 and $941 per year from this single upgrade alone.
Professional Monitoring Is the Key to Maximum Savings
The single most important factor determining your discount tier is whether your system is professionally monitored. Some insurers give a small 2% to 5% discount for having an alarm system at all — but the 10% to 20% discounts require professional monitoring with a certificate from your security provider. Your insurer will ask for a monitoring certificate — a document issued by your security company confirming the system is active and connected to a central monitoring station — before applying the higher discount tier to your policy.
Texas Insurers Are Going Further Than Basic Burglar Alarms
In 2026, Texas insurers are moving beyond traditional theft-deterrence discounts into what they now call Active Risk Management — and the deeper discounts follow. Major Texas insurers now offer the deepest discounts — up to 15% — for what they call Active Risk Management, which goes beyond a basic burglar alarm to include environmental protection such as water leak sensors and smoke detection systems. Given that water damage is one of the most frequent claims in Texas, a smart system that detects leaks early is exactly the kind of loss-mitigation investment insurers want to reward.
How to Claim Your Discount Right Now
Contact your insurance company directly and ask about their protective device discount — and get the answer in writing before purchasing any system. Ask your security provider for a certificate of monitoring immediately after installation — this is the document your insurer requires to apply the discount. TDI's September 2026 bulletin specifically reminded insurers to minimize administrative burdens and stop requiring redundant inspection forms alongside monitoring certificates. Contact the Texas Department of Insurance at 800-252-3439 if your insurer refuses to apply a documented security system discount.
