The Financial Incentive: Why Securing Your Home Makes Perfect Cents
When we think about home security, most of us imagine it as just another expense—an added cost on top of everything else. Have you ever wondered how investing in home security can benefit you financially? There are plenty of financial incentives for securing your home, especially if you live in Brisbane, or anywhere else in Australia.
Incentives range from lower insurance premiums to preventing the massive costs associated with a burglary. Home security is a smart investment that pays off in more ways than one. Let’s dive into why home security could be the financial lifeline you didn’t know you needed.
Insurance Premium Discounts
Let’s start with one of the most obvious ways home security can save you money—your home insurance premium. Most Australian insurance companies offer discounts to residents who have installed security systems, and the savings can be significant.
Why Insurers Offer Discounts
Insurance companies calculate your premiums based on risk. If your home is considered high-risk for break-ins or damage, you’ll end up paying more. On the flip side, if you take measures to protect your home, you’re reducing the likelihood of a claim, which means the insurer will see you as a lower risk.
According to the Insurance Council of Australia, homeowners who invest in security systems can expect to see premium reductions ranging from 5% to 20% (Insurance Council of Australia, 2023). That’s money you’re saving every year, simply by taking steps to protect your property.
Savings Example
Imagine your annual home insurance premium is $2,000. If you qualify for a 15% discount by installing a security system, that’s $300 back in your pocket each year. Over 10 years, that’s $3,000 in savings! In many cases, this amount is enough to cover the cost of a comprehensive security system, which means the investment practically pays for itself.
Preventing the Cost of a Break-In
Insurance is great for recovering the cost of stolen goods, but it doesn’t cover everything. In fact, the average cost of a home burglary in Australia is approximately $2,400, according to a study by the Australian Institute of Criminology (AIC, 2021). And that’s just the direct financial cost—there are many other hidden expenses that come with being a victim of burglary.
Hidden Costs of a Break-In
Increased Insurance Premiums: After you make a claim, there’s a good chance your insurance premium will increase. Research by Mozo found that around 19% of Australians experience a rise in their premiums after making a claim (Mozo, 2021). That means you’re not only losing money in the burglary itself but you will be paying for it in the years to come.
Time Off Work: There’s the time you may need to take off work to deal with police reports, insurance claims, and the emotional aftermath. For some, this can mean lost wages or even unpaid leave.
Replacing Items: Not everything is covered by insurance, and sentimental items can never truly be replaced. It is key to remember that items may be subject to depreciation.
By investing in home security, you significantly reduce the risk of experiencing these losses. Research shows that homes with security systems are up to 300% less likely to be targeted by burglars (Cozens, 2022). In other words, it’s a financial shield that can prevent a costly disaster.
Increasing Property Value
Here’s something that might surprise you: home security can increase the value of your property. In today’s market, potential buyers aren’t just looking for a nice kitchen or a spacious backyard—they want safety and security. Having a high-quality home security system already installed is a huge selling point.
What Buyers Want
A 2022 survey conducted by Domain found that 67% of Australians consider home security systems to be a desirable feature when buying a property (Domain, 2022). If you’re planning to sell your home in the future, a security system could be the feature that sets your property apart, allowing you to negotiate a higher sale price.
In Brisbane, where property crime rates have seen a steady increase, homebuyers are becoming even more security-conscious. Given this, a home equipped with modern security features becomes an attractive option for buyers, allowing you to recoup your investment when it comes time to sell.
Tax Incentives for Home-Based Businesses
If you run a business from home, whether you’re a freelancer, a small business owner, or working remotely, there’s an added bonus: home security systems can be tax-deductible. That’s right! In Australia, the Australian Taxation Office allows deductions for expenses related to securing your home office or workspace.
How It Works
If you’ve installed a security system to protect your home-based business equipment, you can claim a portion of the cost on your tax return. This includes installation, monitoring fees, and even repairs. Keep in mind that the deductible amount depends on the percentage of your home that you use for business purposes.
Peace of Mind is Priceless (But It Saves You Money Too!)
We’ve talked a lot about the tangible financial benefits, but there’s another cost-saving factor that’s harder to measure: peace of mind. The peace of mind that comes with knowing your home is protected is worth its weight in gold. It’s an investment in your mental health, well-being, and future financial security.
Final Thoughts
While home security systems may seem like an added expense upfront, it’s actually a savvy financial move for Brisbane residents. From lowering your insurance premiums and preventing the costs associated with a burglary to increasing your property’s value and even providing tax incentives, the benefits are clear. In the long run, investing in home security is one of the smartest financial decisions you can make.
By protecting your home, you’re not just securing your belongings—you’re also safeguarding your hard-earned money, your future, and your peace of mind. So, the next time you’re wondering whether to splurge on that home security system, just remember it’s not just about keeping burglars out, it’s about letting more savings in.
References
Australian Institute of Criminology (AIC), 2021. The Financial Impact of Burglary in Australia. [Online] Available at: https://www.aic.gov.au/
Insurance Council of Australia, 2023. How Security Systems Can Lower Your Insurance Premiums. [Online] Available at: https://www.insurancecouncil.com.au/
Mozo, 2021. Home Insurance Claims and Premium Increases. [Online] Available at: https://mozo.com.au/
Cozens, P., 2022. Crime Prevention through Environmental Design (CPTED): Reducing Crime by Design. Journal of Crime Prevention Studies, [Online] Available at: https://journals.sagepub.com/
Queensland Police, 2023. Brisbane Crime Statistics. [Online] Available at: https://www.police.qld.gov.au/
Domain, 2022. What Do Australian Homebuyers Want? [Online] Available at: https://www.domain.com.au/
Energy Australia, 2022. How Energy-Efficient Lighting Can Save You Money. [Online] Available at: https://www.energyaustralia.com.au/
