Are insurers offering home owner coverage requiring video monitoring or offering more discount for that service January 15, 2022
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KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com ****************************** Are insurers offering home owner coverage requiring video monitoring or offering more discount for that service January 15, 2022 ******************* Most of you are familiar with a customer’s request for a Certificate of Service. This is a document you provide the customer so that the customer can present it to his insurance company in order to get coverage or get a discount in premium. The form can also be used to confirm alarm coverage needed by a tenant for a landlord, an owner who has a mortgage, a commercial business needing theft and fire coverage and other situations. The need for security or fire alarm protection in order to even get insurance is not uncommon. This too has evolved over time, so that a simple burglar alarm or fire alarm is no longer acceptable to the insurance carrier [or other asking for the alarm coverage] unless there is also central station monitoring service. Some carriers step it up by demanding UL central station coverage. So the question is, are carriers now demanding video monitoring, either as primary protection or back-up verification of an emergency situation? The answer seems to be that it’s not required. Keep in mind that you will be asked for a Certificate of Service and there is a specific form for it; you need to be careful not to convey any rights to the carrier; your certificate needs to be informational only. I happen to think that video verification is valuable becoming popular, especially the video door bells. Cameras offer a fairly reliable way to view in real time what’s going on at the subject premises to confirm a real or false alarm. The added deterrent feature of visible cameras is also a significant addition to a security system. I asked the insurance experts on The Alarm Exchange and here are the responses I received. You should support these insurance experts. ******************** Ken I know that one carrier will offer credits for monitoring on fleet auto accounts. There are various credits that can be offered on auto fleets, and if filed with the state, an insurance company does have the option to offer that credit. Insurance companies also have other credits to offer and may do so in conjunction with a robust safety plan – to include video monitoring. Thanks Tammy Rossi Paris-Kirwan Associates, Inc tammyr@paris-kirwan.com 800-724-2627 ****************** Ken, I have not heard about any insurance carrier offering discount for video monitoring; could be beginning. Ralph A.Costa John T. Costa Agency,Inc aka In California John T.Costa Insurance Agency,Inc 973-835-8689 ralph@burglaralarminsurance.com ************************** Ken That is a very vague question without specifics. I will make some assumptions that the dealer is concerned the end users will not receive discounts on their home and business insurance policies without being video monitored? And that the dealer uses that as one of his selling points to sign up new clients? With more than 2000 insurance carriers offering property insurance in the USA, it is tough to say what each will do? Most insurance carriers offer discounts in varying degrees. For example: a smoke detector, fire extinguisher, burglar alarm, fire alarm, fire suppression system, access control, video monitoring, etc. Discounts typically can range from 1% up to 15% depending upon what degree of protection the end user has. Some insurance carriers may stop offering one discount but will add another. If the property owner isn’t happy with the discount or lack thereof, then I would recommend them reaching out to an independent agent that offers multiple options with multiple discounts. If my assumptions are incorrect, then give us a better description and we can respond to the issues. Talk to you soon. Shawn Iverson, CIC The Insurance Center 801-622-2626 www.InsuranceCenterUT.com ******************** Ken, Most underwriters can justify rate discounts by a variety of “safer practices” being followed. Sounds more like a sales line to me. Thanks, Larry St John, CIC, CRM Eclipse Marketing & Insurance Services lstjohn@eclipseinsurance.com 707.469.6776 x102 ******************** Ken I don’t have any carriers that require Video Monitoring in order to provide additional discounted rates. It may go into the overall underwriting of risk which may play a factor in overall rates, however not directly tied to a % discount of any kind. Jeff Schulz, CIC, CRM Managing Director, Commercial Division J. Krug 847.818.7508 ********************* To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com