Security Tips: Home insurance discounts

If you have a home security system and you have not mentioned it to your insurance company, you may be losing out on substantial insurance discounts.

Insurance companies may offer up to five per cent off your home insurance costs if you have installed a local alarm system, that is, an alarm which is not monitored. A discount of 10 to 15 per cent may be available if you have an alarm system connected to a central monitoring station. If your alarm is monitored for burglary and fire, you could receive up to a 20 per cent discount on your home insurance. This is in addition to your Block Watch discount of five per cent.

It's always a good idea to ask about all the possible discounts for which you are eligible as a security-conscious homeowner. Claim-free discounts of 10 to 15 per cent are offered to the home owner who has not had a claim for three to five years. This alone is reason enough to ensure your home is secured with the proper locks and an alarm system to prevent a break-in and to keep those discounts coming in.

Most insurance companies will pay up to $1000 total to replace or re-key the locks on your dwelling or automobile, including the ignition, if your keys are stolen. However,the theft must be reported to the police or law enforcement agency that has jurisdiction at the location of the theft. This coverage is not usually subject to a deductible.

When purchasing a new home, it is imperative that you re-key your home before you start moving your belongings into the house. Key violation is an ongoing problem and the only way to prevent this is to change the keys. You don't have to buy all new locks - a locksmith simply changes the existing combination of a cylinder or lock so that it can be operated by a different key. This renders the old key inoperable, and the cost for this service is minimal.

Seasonal dwellings are another area of importance. If you have a cottage or cabin, you should consider securing it as you would your year-round residence.

Most insurance companies offer optional coverage against theft of personal property which leaves visible signs at the point of forced entry or exit. So, it is a good idea to get into the habit of locking your home and always activating the alarm system, even if you are just going to the corner store for a few minutes.

Note

When purchasing insurance, use your zone identification number to confirm your Block Watch status and earn a discount of five to 10 per cent.