4 Financial Benefits of Home Security


In our money-driven world, most people only have one question on their minds before they make any purchase:

“How much is this going to cost me?”

And when it comes to the cost of home security, the returns on that investment are often promoted in largely intangible terms. Peace of mind and a sense of security are very valuable, but you can’t cash those things at a bank. You can, however, reap real monetary benefits from having a home security system. Read on to find out how.

Lower homeowner’s insurance.

Like death and taxes, homeowner’s insurance is a certainty for most of us. While your individual premium will vary based on your location, coverage, payment plan, type of home and other factors, homeowner’s insurance is designed to protect your house and its possessions from loss and damage. Generally, there can be substantial discounts available to homeowners who have active, functioning security systems installed. Over many years, this could potentially amount to a substantial chunk of change.

Better protect your home from fire damage.

Typically, many people only associate security systems with burglaries and other forceful intrusions. But what they don’t realize is that the latest systems can provide a host of additional protections from the financial loss of a fire. With the average cost of repairing a home damaged by fire averaging around $4,000 nationally — and spiking to $12,000 or more in many cases — the advanced warning capabilities of a home security system add an additional layer of protection. Monitored systems not only detect smoke, but also the presence of extreme heat. And where there is heat, there could also be a fire building, which is why the heat detection capabilities of modern security systems are so valuable — they more effectively protect not only your safety, but also your wallet. 

Reduce your tax liability

Now, we’re not tax accountants or anything, so we encourage you to talk over all Uncle Sam-related matters with your tax guy. That said, a little birdie told us that there’s a strong possibility that your alarm system could make you eligible for a tax break. In some cases, your system may be considered a “capital improvement” on your home, and thus, enables you to add its price tag to your home’s adjusted cost basis when selling. This reduces your capital gain, and later, your capital gains tax when you sell. And if you are running a business out of your home, the portion of your system that protects the “business area” may be eligible for deduction as a business expense. 

Increase your home’s value

Security is a key factor that greatly influences a homebuyer’s purchase decision, and if you’re the owner of a dynamic security system, you’ll be able to better demonstrate to prospects that your home is safe. In order to really sell your particular system’s benefits, be able to demonstrate how sensors protect doors and windows, how the motion detectors work, and how the smoke, carbon monoxide, and flood detection features function. You are much more likely to get your home’s asking price if you can help prospects quantify the security investment you’ve made, including:

  • Hardwiring for the system
  • Motion-detected exterior lighting
  • Interior and exterior security cameras

Essentially, home security systems are the gift that keeps on giving — in both tangible and intangible ways.