It’s a common assumption that fitting an alarm or camera automatically earns you a cheaper home insurance policy. The reality is more specific: insurers do factor security into pricing, but what actually counts — and whether you have to prove it — varies by provider and by the type of system you install. Here’s what UK and US insurance bodies actually say, rather than what a security company’s marketing implies.
What insurers say, in their own words
The Association of British Insurers (ABI), the UK insurance industry’s representative body, states plainly that “many insurers offer discounts for homes fitted with security devices such as burglar and smoke alarms and high-quality window and door locks” — but adds an important qualifier: your insurance provider will tell you which specific devices they approve. In other words, buying any alarm doesn’t guarantee any discount; the one you buy needs to match what your insurer already recognises. See the ABI’s guidance on cutting the cost of home insurance.
In the US, the Insurance Information Institute (III) makes a similar point about monitored systems specifically: writing on insuring a vacation home, III notes that “a centrally monitored alarm system that detects both fire and break-ins can help lower the cost of insurance” — the emphasis on monitored and on covering both fire and intrusion is deliberate, since a system that only alerts your phone doesn’t offer an insurer the same assurance as one connected to a staffed response centre. See iii.org/article/insuring-a-vacation-home.
Why insurers care about who installed it, not just what it is
For a monitored alarm to count for insurance purposes in the UK, most insurers want the installation carried out by a certified provider rather than a self-install kit. The Security Systems and Alarms Inspection Board (SSAIB) — a UKAS-accredited certification body — says directly that “for most installations requiring a security or fire system for insurance purposes, the Insurer will insist that a Third Party Certificated provider (e.g. SSAIB) is employed.” The National Security Inspectorate (NSI) plays the equivalent role and is treated the same way by most insurers. Practically, this means the SSAIB or NSI directory of certified installers doubles as a reference list that insurance companies, brokers and police already use. See ssaib.org and nsi.org.uk.
Police-response eligibility is a separate system with its own specific requirements — National Police Chiefs’ Council policy requires a certified installer, a certified Alarm Receiving Centre and a registered Unique Reference Number, alongside the system meeting the relevant technical standards. NSI or SSAIB certification generally forms part of qualifying for that, but insurer acceptance and police-response eligibility are governed separately, not by one single accreditation that automatically covers both — we cover the police-response requirements in more detail in Monitored Alarm Standards and Accreditation.
Self-monitored and DIY systems: a genuine grey area
Neither the ABI’s guidance nor the III material above specifically addresses self-monitored, app-only systems with no professional installer or monitoring centre behind them. In practice this means you should never assume a self-installed camera or DIY alarm kit qualifies for any insurance discount. Policy varies by insurer, and neither the ABI nor the III guidance above extends to self-monitored systems — so the only way to know where you stand is to ask your own provider directly before you buy, not after.
Security doesn’t only cut one way
It’s worth balancing this against a caution from the UK National Cyber Security Centre: smart home devices that aren’t kept updated and properly secured are a genuine attack surface, not just a convenience. A camera or lock that isn’t kept updated and password-protected is a liability as much as an asset — see our guide to securing a camera against account takeover and the NCSC guidance referenced in our smart devices explainer.
What to actually do
- Call your insurer before buying anything and ask which specific alarm types, locks or accreditations they recognise for a discount.
- If you want a monitored alarm to count, use an NSI- or SSAIB-certified installer, not a self-install kit, and keep the certificate of installation.
- Don’t assume a self-monitored camera or DIY sensor kit qualifies for anything — ask explicitly.
- Tell your insurer if you remove or stop paying for a monitored system after taking out a discount — undisclosed changes can affect a claim.
- Keep whatever you do install updated and password-protected; an insurer’s discount doesn’t cover the cost of a poorly secured smart device being compromised.
For the underlying cost decision, see our home security system cost breakdown and Are Home-Security Subscriptions Worth Paying For?.
Sources
- Association of British Insurers, “Cutting the cost of home insurance” — abi.org.uk
- Insurance Information Institute, “Insuring a vacation home” — iii.org
- UK National Cyber Security Centre, smart device security guidance (referenced in our smart devices explainer)
- SSAIB — ssaib.org
- National Security Inspectorate (NSI) — nsi.org.uk