When in the market for a home security system, homeowners are not only comparing the different security providers and their various security packages, but they are also looking at upfront costs. Depending on the security company and their equipment, homeowners can either rent their system or buy it completely. But either way you look at it, monthly charges will occur for monitoring services.
There are obvious benefits in having a home security system (such as 24-hour monitoring from break-ins, fires, floods and carbon monoxide leaks), but what many don’t consider are the financial benefits of having an alarm system. Here are three ways it can help profit you financially:
1. They Lower the Cost of Homeowner’s Insurance
Most homeowners know how crucial it is to have homeowner’s insurance (though some opt out of having this option, despite the potential consequences). Homeowner’s insurance offers protection against possible home events such as fires, floods, property & structural damage, etc. It means having a peace of mind against devastating threats to both the home and property. For instance, According to the U.S. Fire Administration, the average household will lose approximately $4,000 in property damage in the event of a fire. Those unexpected loses can be financially devastating without homeowner’s insurance.
For those who currently have homeowners insurance or are looking to add it, an alarm system can directly affect monthly insurance rates. How much can it save? Rates can be reduced by up to 20 percent. These savings are an additional, effortless way of having money in your pocket that you otherwise wouldn’t have.
2. They are Potentially Tax Deductible
Dealing with taxes and the IRS is no joking matter. To see whether a security system can be tax deductible, an accountant will have to first verify that this not only pertains to you, but that it’s also worth claiming. The only way a security system can be considered as tax deductible is if a homeowner works from home and has a designated space for a home office. The portion of the home that’s a home office is technically also protected by the security system, which can be viewed as a business expense. Anything that’s tax deductible can generate a tax return or lower the amount of tax owed.
3. They May Increase Home Value
Owning or buying a home is a financial investment. And over the years, with home improvements done here and there, homeowners hope to have their homes increase in value. Whether it’s doing appliance upgrades (such as adding stainless steel kitchen appliances), adding hardwood floors (to previously carpeted areas), adding crown molding, etc., installing a home monitoring system is equally considered to be a home improvement.
These all add intrinsic value to any home. Regardless of whether a homeowner is planning on staying at their property for many years, or they are placing their home on the market, projects big and small are beneficial in increasing