How insurers assess security risk in commercial and residential properties

Home and commercial premiums are on the rise due to an increase in security breaches, repair costs, inflation, and even bad weather. According to a 2025 study by Norton Insurance Brokers, UK insurance premiums saw significant rises in 2024-2025, with some data indicating an 8.5% to 26% increase.

However, insurance premiums can vary depending on several factors. If you have been wondering how insurance companies assess security risk and set premiums, then this guide is just for you.

Read on to learn more about how insurers assess security risk in commercial and residential properties and what you can do to combat rising premiums:

HOW RISK ASSESSMENTS WORK

Insurers begin by building a risk profile of a property to see how much premium they can apply. In fact, this methodology is also followed for other types of insurances, such as car and life insurance.

Several factors go into building your risk profile. Here are some of them:

Location-Based Risks

Location plays a big role in determining the insurance premiums of a residential or commercial property. Factors like local crime rates, proximity to emergency services such as police and fire stations, environmental risks such as flooding or subsidence, and even your previous history can affect your premiums.

Property Characteristics

This involves the age and size of the building. Older buildings tend to have more problems since the materials used in the construction are more likely to deteriorate.

The layout of the property is also considered, and factors such as its vulnerability to damage or intrusion are also considered when building your risk profile.

Claim History

As mentioned above, any previous security-related claims on the property by the owner can increase the perceived risk of the property. For example, if there have been one or two intrusions in a calendar year, and you seek to claim damages, then this pattern will also be recorded and accounted for in your risk profile.

More claims in a year would result in a higher premium charged in subsequent years until your property is properly secured.

Occupancy

Vacant properties or industries with high turnover are often rated higher risk because of greater potential for security failures.

In other words, empty properties are more likely to be vandalised and damaged by nefarious parties just because there is no one inside or around them for protection.

This factor also applies to residential properties, especially if the owner is frequently away from home.

COMMERCIAL PROPERTY RISK ASSESSMENT

Commercial properties require a more complex approach for their risk profiles.

Here are some of the ways insurers determine the premiums of commercial properties:

Security Standards

Insurers often begin by looking for detailed security measures, or the lack of them! This includes looking for intruder alarm systems, the placement of the alarms, and the system’s overall efficiency.

Preference is given to systems that use compliant and recognised standards like the BS EN 50131. Typically, higher grade systems result in lower risk and therefore, lower premium charges.

Alarm Monitoring

Commercial properties that are monitored by professional alarm receiving centres (ARCs) are regarded as more comprehensively secure than properties with just a standalone system.

Professional monitoring enables real-time security, and the agents at the ARC can immediately confirm and report suspicious activities to law enforcement or emergency services. This, in turn, increases the overall perceived security of the property and allows the user to obtain lower premiums.

Hardware Protection

Security hardware such as security systems, locks, access control systems, and door and window alarms is crucial for securing the property and obtaining lower premiums. Properties that use approached locks as per the BS3621 standards are seen as more secure than properties that use random and non-standard measures.

CCTV Quality

Even the quality of the footage recorded by the on-site surveillance cameras is crucial in determining the overall risk profile of a commercial property. Insurers expect evidence-quality CCTV covering all access points and high-risk areas.

Additionally, these systems must also be continuously maintained and often retain recording for a set period (such as for a few weeks or a month).

RISK ASSESSMENT AND DOCUMENTATION

Insurers often require a formal risk assessment report prepared by a security company or consultant. For example, if you install your system with a certified security company like Calder Security, then they can help you create a formal and comprehensive risk assessment report that you can share with your insurer to get discounts on your premiums.

Typically, the report:

• Identifies property vulnerabilities and access points.
• Recommends mitigation measures that can further increase security.
• Documents completed security upgrades and repairs.

This report informs all the underwriting decisions when your risk profile is built. However, please note that insurers may also require proof of implementation before offering the policy. This proof can be provided by your security installer.

SECURITY ALARMS AND RISK PREMIUMS CHECKLIST

What are the top security measures that businesses and residential properties need to secure lower policy rates?

Here is a checklist for some of the top and most used security hardware:

Burglar Alarms and Sensors

Burglar alarms and sensors form the basis of any good security system and are key to reducing insurance rates.

Door and window locks are a good start, but you also need to invest in state-of-the-art burglar alarm systems that can provide comprehensive security, even when you are away from your property.

Alarm systems use sensors that are placed in key locations around the property. As mentioned above, these places are usually around key entry and exit points. Basically, anywhere that people can enter or exit the building.

The sensors work by detecting unusual movement or activity when they are armed. This is usually during nighttime or early in the morning, when all sensors are activated. If movement is detected, the system sounds a loud siren to alert all those around to the intrusion.

These systems can be armed and disarmed depending on your activity around the property. For example, the sensors within the property can be disarmed during the day when people are on and about, while the perimeter security sensors remain armed. At night, all sensors can be armed.

Alarm systems are tried and tested to be one of the best deterrents against burglaries and intrusions. For even more added security and protection, you may opt for professional alarm monitoring services where a monitoring company or Alarm Receiving Centre (ARC) will continuously monitor your property and alert emergency or law enforcement services as needed.

Many people are also moving towards smart sensors that use artificial intelligence (AI) and advanced algorithms to detect threats.

However, for insurance purposes, you will have to make sure that the hardware is compliant with British Standards and that your insurer recognises the system that you want to implement. You can ask the installer for more details on picking the right hardware for your property.

CCTV

CCTV cameras have been around for a long time and have proven time and time again to be very effective.

Installing CCTV cameras adds eyes and ears to your property and enables you to collect evidence that you can later use for insurance claims.

The mere presence of these cameras is enough to deter crime, and they are extremely useful for looking out for your property, even when you aren’t around.

CCTV cameras come in several varieties. The most common CCTV hardware is usually rated for perimeter security. An insurance company agent will carefully assess your business for security flaws and check the number of CCTV cameras covering blind spots and other important access areas.

In the same way as burglar alarms, you can go with smart or IP cameras, but make sure that this type of hardware is recognised by your insurer.

Wireless cameras may not be as effective as wired cameras because they rely on a stable internet connection. So, if there is network lag, then you will not be able to access live footage and may not be able to even detect threats.

Additionally, a camera with a lower resolution may not be able to capture footage correctly. The camera must be able to record in crisp quality, where you can easily see the perpetrator’s faces or features. This is why insurers also account for the CCTV quality when building your property’s risk profile.

A great way to get everything in order is to go with security audit services. Top-notch companies like Calder Security offer consultation as well as audit services where technicians will come out to your property and conduct a thorough investigation that can help reveal security gaps.

This report can be used to increase the overall security of your property and bring down your insurance rates. Security companies can provide you with tailor-made security solutions that are based on industry standards. This means that you can be sure that your security hardware will be fully compliant.

Access Control Systems

Access Control Systems control the flow of people in and out of the property. These systems use advanced locking mechanisms and authorisation interfaces to only allow authorised people into the property.

This can greatly enhance the security of your property and increase its overall accountability as well. There are three common authentication types for access control systems: the first is the classic keypad lock. This lock features a numpad, and only people who know the code can access the restricted space.

The second uses biometric authentication. Authorised personnel will need to register their thumb or fingerprint to create their account. This method provides a lot of security and convenience since personnel will not require a physical card on their person. Biometric authentication pads are becoming increasingly popular in high-risk businesses because of their convenience and reliability.

RFID access control systems are also incredibly useful and convenient. The user authenticates themselves by holding a special RFID card against the scanner. Like biometric scanners, RFID scanners are ideal for businesses that want very specific access in restricted areas.

There are also multiple forms of access control systems, like role-based, mandatory access, and discretionary access systems. These systems increase accountability by allowing only a select few to enter high-risk premises, thereby reducing the chance of breaches.

Access control systems are even more important for places that hold cash. In fact, it may also be strongly recommended by your insurer to install a comprehensive access control system in this case.

By complying with these recommendations, you can show the insurance company that you have taken all the necessary measures to secure your property at your end. We recommend that you consult with a security installation company like Calder Security to better understand these systems and figure out the right system for your property.

Locks and Safes

Safes and locks have been used for centuries, and their utility continues to prove their importance.

Storing valuables in a safe instead of in the open is a great way to add instant security to your property. Safes are great for protecting valuable assets such as money, jewellery and even important documents, such as property documents.

Poor locks are by far the most common reasons for break-ins in the UK. It may seem shocking, but you would be surprised by the quality of locks people use! The best way to fully secure your property is to go with compliant locks that are built using a high-level of standard.

By opting for a professional installation company like Calder Security, you can ensure that all the hardware used for your property is up to the required standards. More importantly, Calder Security has its own certified locksmiths who have a track record of keeping their clients’ valuable assets safe.

Staff Training

They say the weakest link in modern security systems is the human element, and this may be true, especially for untrained occupants.

Training is an added security measure that allows you to strengthen the overall security of your property and to decrease the loss of assets and life.

Occupants must be trained on how to pick up on threats and use the right protocols for avoiding and reporting threats. These practices can significantly increase security and prove to your insurance company that you take security seriously.

CONTACT CALDER SECURITY

At Calder Security, we provide a comprehensive range of security solutions that include not just professional installation but also monitoring, maintenance, and repair services for your home burglar alarm systems.

We are members of the Master Locksmith Association (MLA), approved members of the Security Systems and Alarms Inspection Board (SSAIB), and also conform to all the relevant British and EU Standards.

We follow all the best practices in the industry and install only high-quality, state-of-the-art security systems.

We offer various levels of monitoring via a 24-hour monitoring centre using Dualcom and BT Redcare signalling, which is the most secure alarm monitoring system and the largest supplier of intelligent alarm signalling services in the UK.

We understand the importance of having to regularly maintaining security systems since the inability to do so might result in serious faults and consequent vulnerabilities in your property’s security.

We provide professional maintenance checks and reminders for when the checks are due to help you stay compliant with the law and work fast to restore your security systems to excellent condition.

We offer a 24-hour call-out service for customers and can also repair systems not installed by us. Our engineers are highly skilled and can restore faulty systems to full working order in one visit.

Contact us here or call us on 0800 612 9799 to talk to our experts for more information on how insurers assess security risk in commercial and residential properties.

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