After a break-in occurred just down the street, Olivia, a homeowner in Calgary, began to think more seriously about home security. Her neighbourhood was generally quiet, but the incident was a wake-up call. She installed a professionally monitored security system with cameras, smoke detectors, and water-leak sensors.
A few weeks later, while reviewing her home insurance policy, Olivia noticed a welcome surprise—her annual premium had dropped by nearly 10%.
The reason? Her insurer applied a security system discount—a benefit many Canadian homeowners overlook when trying to reduce insurance costs.
If you own a home in Canada, you may be wondering: Do security systems really make a difference to my insurance rate? The short answer is yes—but how much you save depends on the type of system you install and how it’s monitored.
Here’s how and why security systems can reduce your home insurance premium, which systems qualify for the biggest discounts, and how to make sure you receive every dollar you’re entitled to.
Home insurance premiums are based on risk. The lower the likelihood or severity of a claim, the lower the premium insurers are willing to offer.
Security systems reduce several of the most common and costly home insurance claims in Canada, including burglary, fire, and water damage. Because these claims account for a significant portion of insurer payouts, risk-reducing systems are often rewarded with discounts.
| Threat Type | How Security Systems Help | Impact on Claims |
|---|---|---|
| Burglary | Cameras, alarms, and signage deter intruders. | Fewer theft and vandalism claims. |
| Fire | Smoke detectors and monitored alarms alert responders faster. | Reduced fire damage. |
| Water damage | Leak sensors detect issues early. | Smaller, less costly water claims. |
| Frozen pipes | Low-temperature alerts identify furnace failures. | Fewer burst pipe incidents. |
Not all security systems qualify for the same level of savings. Insurers generally distinguish between unmonitored, self-monitored, and professionally monitored systems.
| System Type | Description | Typical Discount Range* | Insurance Impact |
|---|---|---|---|
| Unmonitored (local alarm) | Alarm sounds on site only. | 0%–5% | Limited — no guaranteed response. |
| Self-monitored smart system | Alerts sent to homeowner’s phone. | 2%–8% | Moderate — depends on homeowner action. |
| Professionally monitored (ULC-certified) | 24/7 monitoring with emergency dispatch. | 10%–20% (occasionally higher) | High — fast response reduces losses. |
*Discounts vary by insurer, province, and policy. Not all insurers offer the same percentages.
For the highest discounts, most Canadian insurers require professional monitoring through a ULC-certified (Underwriters Laboratories of Canada) monitoring station.
Insurers typically offer better discounts when a system protects against multiple types of loss, not just break-ins. Systems that address fire and water risks are especially valued due to the high cost of related claims.
| Feature | Purpose | Why Insurers Value It |
|---|---|---|
| Door and window sensors | Detect forced entry. | Reduces theft risk. |
| Motion detectors | Detect movement when the home is unoccupied. | Limits duration of break-ins. |
| Smoke detectors | Early fire detection. | Reduces severity of fire claims. |
| CO detectors | Detect carbon monoxide. | Improves occupant safety. |
| Water-leak sensors | Detect leaks near appliances and sump pumps. | Mitigates costly water damage. |
| Low-temperature sensors | Detect dangerous cold levels. | Helps prevent frozen pipes. |
| Professional monitoring | Confirms alerts and dispatches responders. | Key requirement for larger discounts. |
Important: While features like water-leak and freeze sensors improve risk reduction, not every insurer applies a separate discount for each device. Their value is often considered as part of the overall system.
Security system discounts are not applied automatically. Insurers require proof that your system meets their standards.
| Document | Purpose |
|---|---|
| ULC monitoring certificate | Confirms 24/7 professional monitoring. |
| Installation certificate | Verifies professional installation. |
| Invoice or device list | Confirms system features (fire, water, intrusion). |
Tip: Provide these documents to your insurance broker or insurer immediately after installation—or at renewal—to ensure the discount is applied.
Professional monitoring typically comes with a monthly fee, so it’s reasonable to ask whether the insurance savings alone justify the expense.
| Item | Annual Amount |
|---|---|
| Base home insurance premium | $1,800 |
| Security system discount (20%) | –$360 |
| Monitoring fee ($40/month) | $480 |
| Net additional cost | +$120 |
In this scenario, the insurance discount doesn’t fully offset monitoring costs—but homeowners gain:
For many Canadians, the risk reduction and peace of mind outweigh the modest net cost.
Security systems do more than protect your home—they can also reduce your home insurance costs. In Canada, insurers commonly offer meaningful discounts for professionally monitored, multi-peril systems that reduce risks from burglary, fire, and water damage.
To maximize your savings:
When done right, a security system protects both your home and your long-term insurance costs.
At Begin Insurance, we act as your dedicated broker and simplify the complex world of personal insurance for homeowners and condo-owners across Canada. We compare policies from multiple insurers to ensure you benefit from every available discount, including those for security systems, water protection devices, and multi-policy bundles. We help you find comprehensive and affordable home insurance coverage that provides true financial protection and peace of mind.
Whether you are looking to extend your current coverage, learn how to calculate home insurance or buy a mandatory or optional coverage, we can help. Request a free quote today to get started.
Posted Jul 4, 2019