Home Insurance Discounts? Unmonitored, monitored? California

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Does anyone in the Community here have experience with Home Insurance discounts based on adding a “home security system”?

Various subscription-based security system vendors mention that discounts “average” about 5% for unmonitored systems (i.e., just some sort of alarm on the windows and doors), and up to 20% for monitored systems (the level of monitoring is not described, but they mention that the system must be UL Certified, and/or that the security system vendor will provide a “certificate” to send to your insurance provider).

I called our current policy provider, and they offered ONLY a 1.6% discount, regardless of the type of system. WTF?

I think there are some inexpensive monitoring services that can be used with SmartThings that may make the system quality for the “monitored” certification … though I obviously have to get some more premium quotes before even getting to that possibility!

Thanks,
…CP.

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Mine did the same. No questions asked and no need to prove installation but no additional discount for premium or UL certified security system.

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My insurance Co said NO discount unless it’s a “monitored security system”… I said I monitor it on my smart phone! No joy.

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Hmm… I think I need to investigate this! :smile:

SmartThings servers monitor its resources (though is not provided a service or is action based alerting by a physical person)… its all relative really…

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Did they tell you what discount they offered for a “monitored” system?

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Can anyone comment specifically on State Farm to save me a confusing call with the representative who wouldn’t understand anything besides ADT, et al.

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I will be contacting “Farmers Insurance” (California) soon, FYI.

But, indeed, my representative at Safeco was completely useless with respect to defining the options and requirements related to this topic.

NB: The requirements certainly will vary from State to State, as insurance commissions regulate at the State level.

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Anyway to get ST to come up with some type of Certificate saying what our ST systems are capable of monitoring and alerts we receive? If so it may be enough for my insurance Co ( I just got off the phone with my insurance Co.).

@Ben

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Smoke/carbon monoxide & security etc.

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I am looking into this.

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Dave: Were you able to get your insurance company to “bullet point list” the required security functions needed to qualify as a “certified home security system”?

Definitely getting SmartThings to handle the other side (i.e., listing the capabilities of ST) will help, but, really, the combination of requirements + capabilities = success!

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Here is the State Farm promo page: https://www.statefarm.com/insurance/home-and-property/homeowners/discounts/home-monitoring-offer?wt.mc_id=displaybuy&camp=8201695&site=1575298&plac=110124727&crea=0

They’ve hooked up with iris and offer discounts of “Up to 2%” and a coupon for the purchase of the kit.

I’ll give my agent a call and see about getting a bullet list of requirements for the discount. Hoping it’s feature based and not brand based.

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Thanks for this! I’m on State Farm as well. Can you post their reactions?

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any update on state farm responses?

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I am in the Bay Area and use Bay Alarm - I have “retrofitted” it so I can see all my sensors through ST - the discount they give me is based on a package of things so I am not certain exactly what the % is. However, active response gets the larger of the discounts from passive - i.e. notify the police. Also having recorded CCTV provides incremental discount - DropCam works good with ST and the CVR (Cloud Video Recording) from them is sufficient for most insurance companies. Plus you can now see who is at the front door without getting up from the couch. :smile:

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Thanks… May I ask which insurance company?

The frustration I had with mine (Safeco via Wells Fargo) is that they had ZERO documentation on what the minimum or incremental requirements are for an “Alarm System” – and only seemed to find a less than 2% discount. WTF?

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It is a package from Wells Fargo also - Travelers and Hartford - don’t remember which is for what…

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@Ben any updates on ST putting a certificate together saying what the system can do? I imagine some of us would be able to get a discount from our insurance Co.

Thank you

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Thanks … I guess Wells Fargo is just acting as a broker or agent or something. The underwriters must set the actual policy rules and premium discount schedule.

Did you get something in writing or see a section in your policy that precisely describes what your Alarm System Discount is based upon? If you disconnect incrementally (e.g., disconnect active response, or disconnect CVR), is it clear that you need to inform them and what exact amount your premium will increase?

This is a Topic that must be difficult to address due to the complexities of insurance regulations across the country; but it could be quite lucrative to SmartThings as the discount could (?) easily offset a significant portion of the purchase price of SmartThings.

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I work in the insurance industry and would be happy to answer any specific questions.

Generally speaking, insurers will tend to be conservative, only giving discounts when the benefits of something can be accurately measured. The impact of giving too much of a discount to one group of consumers would be that the non-discounted group would be subsidizing those getting the discount. The industry will tend to lag changes in the marketplace as we try to understand the impact.

With that said, Smart Homes will go way beyond just a security discount. Insurance Claims are made up of preventable and unpreventable losses. Smart Homes will start preventing losses and that will indeed be a game changer.

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