Mandatory Security System for Landlord Insurance?

[Jose Ditren]

Hi! I need Landlord insurance for a rental property and we are being told by our agent that we are required to have security system such as ADT because of the fire protection rating in the zip code. They gave us two quotes, with and without the system, which is making me think it is a suggestion for discount rather than mandatory. But we are far better off paying the higher premium than the security system. Does anyone know if this is in fact a requirement? Thanks!

[John Mocker]

Jose,

My guess is that the two quotes are with different Insurance companies. Each Insurance company files sets of guidelines with the state insurance dept. in each state they operate.  It is possible that company A has made it an underwriting requirement for the alarm and Company B does not have that requirement.  If that is true, you need to compare the savings for the less expensive company vs. the cost of the alarm.