Homeowners Insurance Alarm Credits: Is Professional Monitoring Required?

If you’ve ever looked for ways to save on your homeowners insurance premium, you’ve probably come across alarm system discounts. It makes sense: Installing a security or fire detection system lowers your risk of property damage, theft, or loss – which is why so many homeowners qualify for an insurance discount for home alarm systems. But not all alarm systems qualify.

At Edison Insurance Company, we believe in encouraging smart home protection – but our alarm credits come with specific requirements. If you’re considering installing a new system or wondering whether your current one makes the cut, it’s important to understand how these credits work and whether professional monitoring is required.

Here’s what Florida homeowners need to know.

What Are Alarm Credits?

Alarm credits are a type of homeowners insurance discount. They’re designed to reward policyholders who invest in systems capable of reducing the likelihood or severity of certain losses, such as theft or fire.

At Edison, we currently offer two main types of alarm credits:

• Burglar alarm credit – for systems designed to detect unauthorized entry

• Fire alarm or sprinkler credit – for systems detecting smoke, heat, or fire and triggering suppression or emergency notification

But simply having an alarm system isn’t enough to qualify. The type, installation method, and monitoring status of the system all matter.

Is Professional Monitoring Required?

The short answer is yes. To qualify for an insurance discount for home alarm protection through Edison, your system must be professionally monitored. This means your alarm system must:

• Be professionally installed
• Be currently operational and active
• Report directly to a central monitoring station
• Trigger a response from police, fire, or emergency services when an event occurs

In contrast, self-monitored or unmonitored systems do not qualify – even if they’re high-quality or send alerts to your phone.

Why Isn’t Self-Monitoring Enough?

Modern DIY systems like Ring, Nest, and others have become popular for their affordability and convenience. While they do enhance home security, these systems often rely on homeowner action – meaning you must see the alert and call emergency services yourself.

With a professionally monitored system, an operator at the central station is automatically notified and can contact local authorities on your behalf, even if you're asleep, at work, or away on vacation.

Home insurance is about risk reduction. Professionally monitored systems reduce the likelihood of catastrophic losses by ensuring faster, more reliable emergency response. This type of response is exactly what qualifies a system for an insurance discount for home alarm coverage.

Why Do Insurers Offer Alarm Credits?

Homeowners insurance is based on the likelihood of loss. If you take steps to lower your risk of loss – such as protecting your home against intruders or fires – your insurer is in a better position, and so are you.

Here’s how professionally monitored alarm systems help reduce risk:

• Burglar alarms deter intruders and notify police quickly, which may prevent theft or minimize damage.

• Fire alarms and sprinkler systems can reduce smoke and flame damage by responding instantly – even before emergency crews arrive.

• Central monitoring ensures an alarm doesn’t go unnoticed.

In short, monitored systems create a measurable benefit for homeowners and insurance companies, which is why insurers like Edison offer credits for systems meeting specific standards.

What Documents Do I Need to Qualify?

To receive your alarm credit, you’ll need to provide proof your system is both installed and actively monitored by a centralized monitoring station.

Acceptable documents may include:

• Certificate of professional installation
• Monitoring agreement or current monitoring subscription

Be sure the documentation includes:

• Your name and address
• Alarm company's name
• Statement about the system reporting to a central monitoring station
• The type of monitoring (burglar, fire, or both)

If your system isn’t actively monitored or if your documentation doesn’t meet the criteria, your credit could be delayed or denied.

Thinking of Installing a New Alarm System?

If you’re considering installing a new alarm system with the goal of earning an insurance discount for home alarm protection, here are a few helpful tips:

• Choose a provider offering central station monitoring. Not all alarm companies provide 24/7 central monitoring, so make sure yours does. Ask whether they issue certificates for insurance purposes.

• Confirm the system meets local building codes. For fire and sprinkler systems in particular, Florida building codes may require certain features or certifications.

• Request documentation right away. After installation, request a certificate or formal statement confirming the system is monitored and functioning. This makes it easier to submit for credit.

• Notify your Edison agent. As soon as your system is up and running – and you have the right paperwork – contact your Edison Insurance agent. They’ll help you add the credit to your policy if you qualify.

FAQs: Home Alarm Systems & Insurance Discounts

At Edison Insurance Company, we want to help you get the savings you deserve. The following FAQs cover what qualifies, what doesn’t, and how to claim your alarm system discount.

Q: How do I qualify for an insurance discount for home alarm systems?

Make sure your system is professionally installed, reports to a central station, and can dispatch emergency responders. Be sure to provide documentation to your agent.

Q: Can I still qualify if I install the system myself but use a professional monitoring service?

A: Possibly – but only if the monitoring is provided by a licensed central station and your system is functioning properly. Self-install kits are trickier to certify, so you’ll need documentation proving the system qualifies.

Q: What if I cancel my monitoring service?

A: Alarm credits are based on ongoing monitoring. If you cancel or let the service lapse, you’ll likely lose the premium credit.

Q: How much can I save?

A: Alarm credits vary by system type and policy. While they won’t drastically reduce your premium, they can provide meaningful annual savings, especially when combined with other discounts.

Protect What Matters Most With Home Alarms – and Get a Discount on Your Homeowners Insurance Policy

Alarm systems do more than beep – they provide peace of mind. And with the right setup, they can save you money on your homeowners insurance, too. But to qualify for an alarm credit with Edison Insurance Company, your system must be professionally installed, fully functional, and monitored by a central station able to dispatch emergency services. Taking these extra steps help to keep your home, your family, and your investment protected 24/7.

Want to See if You Qualify?

Contact your Edison Insurance agent today to review your policy and learn more about our alarm system discounts. Not yet insured by Edison? Visit our website to get a quote and see if you qualify for an insurance discount for home alarm protection.