What are the differences between alarm types when quoting property?
Overview
When quoting property, common questions related to safety and risk reduction are included in all applications. These pertain to reducing and preventing fire and burglary losses, which can be costly claims. Below is an explanation of each type:
Burglar Alarms:
Central Burglar Alarm: Monitored remotely by a company that alerts the authorities.
Local Burglar Alarm: When activated, this alarm triggers a siren, strobe, or sound but does not alert the authorities.
Fire Alarms:
Central Fire Alarm: Monitored remotely by a company that alerts the authorities.
Local Fire Alarm: When activated, it triggers a siren, strobe, or sound but does not alert the authorities.
Private Fire Department Service: A service that responds exclusively to clients who subscribe to their services.
It is highly recommended to install burglar and fire alarms on any property, as they mitigate risks and contribute to more favorable insurance premiums.
Quick Checklist for Agents Before Submitting:
Confirm whether a fire alarm is monitored (not just smoke detectors).
If uncertain, ask for an alarm monitoring certificate.
Only select "fire alarm" if central monitoring is confirmed.
Know that local alarms ≠monitored fire alarms.
FAQs
What is considered a "fire alarm" on the application?
A fire alarm refers specifically to a centrally monitored alarm system that automatically notifies emergency services (fire department) when triggered. It does NOT include:
Smoke detectors (even hardwired ones)
Standalone or battery-operated alarms
Local alarms that only sound within the building without outside notification
Pathpointer: If in doubt, ask the client if they receive an annual monitoring bill or if a third-party service monitors the alarm.
What is considered a "smoke detector"?
Smoke detectors are important for safety but do not qualify as a "fire alarm" in this context.
You should not select “fire alarm” on the application just because smoke detectors are present.
Smoke detectors are standard for homes but are different from monitored fire alarms.
What do I select if there is only a local (non-monitored) alarm?
If the property only has a local alarm (one that sounds onsite but does not alert emergency services):
Do not select "fire alarm."
Leave the fire alarm question blank or answer "No" if specifically asked if there is a monitored fire alarm.
Is a monitored burglar alarm the same as a monitored fire alarm?
No, monitored burglar alarms notify a security company or authorities about break-ins. Monitored fire alarms notify the fire department when fire or smoke is detected. Some systems combine both services, but you should verify whether there is fire monitoring specifically.
How are alarm types verified?
Carrier Inspections will verify the presence of a monitored fire alarm. If a monitored fire alarm is selected and one is not found during inspection, the policy may need to be endorsed (corrected), potentially delaying coverage adjustments.. Sometimes, you may be asked to upload an alarm certificate at binding to confirm the monitored fire alarm exists.
Are there insurance discounts for having a monitored fire alarm?
Sometimes. Discounts are often small, vary by carrier, and generally require proof of a central monitoring service. Selecting the wrong alarm type can result in losing the discount after inspection and a policy change.
If I answer the fire extinguisher question incorrectly, will I need to request an endorsement?
Fire extinguishers are important but not part of the fire alarm question. If a property lacks one, it may just trigger an inspection recommendation (not an endorsement).