What is the State Farm Homeowner's Insurance Discount Given for Owning an Alarm System?

The State Farm Homeowner's insurance discount given for owning an alarm system varies upon many different factors. Alarm Grid cannot guarantee any sort of discount, and it is too uncertain for us to provide a real estimate. And some users in certain states may be ineligible for a discount.

Receiving an insurance discount is one of the best parts of owning a security discount. These discounts normally work by having an alarm monitoring test to make sure that the end user's alarms are reporting properly. Both fire and intrusion alarms are tested, and both alarm types can be stacked to receive a larger discount. If you want the largest discount, having both fire and burglary protection is recommended.

Once we have determined that your alarms are reporting properly, we will sent you a certificate of alarm (COA) document. You can then share this document with State Farm, and they will apply an insurance premium discount at their discretion. Again, we cannot guarantee or promise a discount. It is offered at the sole discretion of State Farm.

The size of any discount provided will depend on many factors. First and foremost is location. Like most insurance companies, State Farm provides larger discounts in certain states than they do in others. There may also be some states and locations where discounts are not offered. We recommend checking with your local State Farm branch to find out the policies in your area.

By comparison, the typical insurance company offers discounts ranging from 5% to 20% for owning an alarm system. In no way can we guarantee these discounts from State Farm. But they are good figures to keep in mind if you're still in the process of shopping for homeowner's insurance. Also remember that there are different things you can do to give yourself a better chance of ending up at the higher end of the spectrum.

For one, getting cellular monitoring is recommended. Cellular monitoring is more reliable than other communication paths, and some insurance companies may provide users with larger discounts for using it. For Alarm Grid customers, a Gold Plan or higher is needed to use cellular. You should also make sure your system offers both fire and burglary protection.

A very important thing to note is that insurance discounts are normally only provided when a customer has an alarm system that is connected with a 24/7 central monitoring station. This is known as central station monitoring. The central station needs to be certified as UL-listed for the system to be eligible. Alarm Grid is partnered with Criticom, a central station that meets these strict requirements.