A home security system will require paying for upfront costs. And while those costs vary—depending on which package option you choose with ADT monitoring (Basic package: $36.99/mo.; Basic Wireless package $48.99/mo.; ADT Pulse package $52.99/mo.; ADT Pulse + Video package $58.99/mo.), there are numerous financial benefits of having a home security system in your home. Consider it an investment that also provides constant security monitoring to help protect your home and loved ones. It’s beneficial no matter what perspective you look at.
So now, you may be questioning how exactly will a home security system provide financial benefits. Here’s three different ways that’ll put money back into your pocket:
1. It Reduces Homeowner’s Insurance
Having homeowner’s insurance isn’t necessary to have; however, some mortgage lenders do require it to help protect their investment. Regardless, homeowners should know the importance of having homeowner’s insurance, since it protects against a variety of unforeseen circumstances—such as fires, floods, personal property damage, structural repairs, etc.
For example, according to the U.S. Fire Administration, a small flame can turn into a devastating fire within 30 seconds— which then costs an average of $4,000 in property damage. And that amount is simply the average: it can easily be more— leaving a household in financial hardship.
Having a home monitoring system not only helps protect against fires and floods, but it can directly impact insurance premiums. Whatever your homeowner’s insurance premium may be, it’s still an additional household expense— and bills certainly do pile up. A home security system often reduces home insurance costs by up to 20 percent. It’s definitely worth investigating.
2. May Be Tax Deductible
First of all, you’ll want to speak with your accountant on this specific matter, but generally speaking, home monitoring systems can be tax deductible for home businesses. Be aware that there is specific criteria in claiming a home business (the IRS takes this particular claim seriously). But if you do work or run a business from home, you can claim that specific work area (which is protected by the home monitoring system) as a business expense.
To claim a home business you have to meet certain requirements, which you can find more about on the IRS Home Deduction page. Deduction requirements essentially include:
- Regular and exclusive use. Meaning you have a designated area that is used solely for business purposes. You’ll have to measure the dimensions of this space and use it to base your home business claim. The larger the space, the larger the deduction.
- Principle place for business. This means that your home is the main place of business, where you conduct your business either full-time or substantially.
3. Increases Home Values
Home investments are a beautiful thing—particularly if they can increase the value of a home. When looking to sell a property, potential buyers are aware of home upgrades: anywhere from kitchen appliances, flooring, etc. A home monitoring system is no exception; it is another selling factor that can encourage a potential buyer to make an offer at a good asking price.