With the cost of living steadily rising, many New Zealanders are looking for creative ways to cut costs. Home insurance premiums, in particular, have surged in the past two years, putting increasing pressure on already stretched household budgets. An experienced security team can help drive those costs down while providing invaluable peace of mind that your home, property and family are safe from harm.
Let’s look at exactly how your premiums are calculated and what you can do to save on your house and contents insurance.
Understanding Your Home Insurance Premiums
There are a few common factors that are taken into consideration by insurers when they calculate your home and contents insurance premiums. While some of these are largely out of your control, others – like home security – can be managed with some careful preparation and the right tools and support.
Property Value
The total worth of your property and its contents will heavily influence your overall insurance costs. As your home and possessions increase in value, so do your premiums, simply because their increased value makes them more costly to repair or replace.
Location
Location also plays a significant role in how your home insurance costs are calculated, with crime-prone or environmentally vulnerable areas attracting higher premiums. When considering your location, insurers are typically looking for things like high incidents of vandalism, break-ins, and damage claims for weather events such as flooding.
Claim History
If you’ve previously made a claim, this will likely drive your costs up, as homeowners with frequent or expensive claims can be viewed as higher risk. Prevention is key when it comes to keeping your premiums down.
Security Measures
Enhanced home security measures such as monitored smoke alarms, cameras, and professional security systems are taken into account by insurers as they calculate your premiums. By putting these precautions in place, you can reduce the possibility of theft, fire, and other damages, lessening the potential for future claims and lowering your premiums accordingly.
What Insurers Want To See
Each measure that you put in place to deter crime and prevent damage can have a positive impact on your home and contents insurance costs. Insurers will reward you for implementing security measures on your property, and the more quality measures you put in place, the more you can potentially save on your home and contents insurance costs.
Locks
Good locks are the first line of defence in your home. Ensure that all windows lock and all exterior doors include deadbolts, as stronger locks offer more protection. For even more peace of mind, investigate access control systems to supplement your physical locks.
Lights
Light is the enemy of would-be criminals. Exterior lights can be an easy and inexpensive way to increase the nighttime security of your home and property. Install timed or motion-sensor lighting around your entry points, pathways, and property boundaries to deter unwanted visitors.
Smoke Detectors
While every home should have basic smoke detectors that are regularly tested, a monitored fire alarm increases your fire safety and could help reduce your insurance costs.
Patrols
Neighbourhood watch programmes provide an additional layer of security protection by keeping extra eyes on your property and building a stronger community. For homeowners wanting a bit more assurance, foot patrols from a professional security company can help you sleep easier, particularly if you need to leave your property for an extended period of time.
Camera Systems
Closed-circuit television (CCTV) systems with mounted cameras are becoming increasingly accessible and popular for homeowners, as they can provide a visual deterrent for crime, real-time footage of your property’s security, and documentation of any incidents that occur. Installing a camera system is a safe and effective way to protect your property and valuables from harm, and could have a significant and positive effect on your insurance premiums.
Monitored Alarms
Both homeowners and insurers will agree that there is no substitute for a monitored home alarm system. With an alarm system connected to a central monitoring station, any incidents are immediately reported to a trained professional who can then assess the situation and respond quickly as needed.
More than Just Theft Protection
A CCTV camera system and monitored alarm can reduce your insurance premiums and streamline the insurance claim process in the case of theft, vandalism, or property damage. The evidence they provide can also save you valuable time and money in the claims process, not only in the case of criminal activity but also when confronted with damage due to emergencies or extreme weather events. Cameras, themselves, are a visible deterrent for criminals and their footage also reduces the administrative burden on your insurance company when they are verifying a claim, further incentivising them to reduce your premiums accordingly.
How Much Do You Save if You Have a Security System
All of the precautions above have the potential to reduce your insurance premiums, with CCTV cameras and professionally monitored security systems likely having the biggest impact on your bottom line. New Zealand insurance companies can offer reductions of up to 20% for houses with advanced security measures in place, which, over time, means that your home security system could even pay for itself.
The available discounts vary by provider, so the best thing to do is approach your insurer and discuss what potential reductions are available. Make sure to read the fine print about any requirements, and work with an experienced security team to professionally install and regularly maintain your home security system.
The Home Security Experts
Good security measures are one of the best ways to invest in your property and your family’s well-being. A reputable and experienced security company can help you implement a customised system that is optimised for your home, and work with you to meet or exceed any security requirements from your insurance company in order to lower your premiums.
Contact Frontline Security today to learn about monitored home security, camera systems, and foot patrols to protect your property, keep your family safe, and reduce your home and contents insurance costs.