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Dissecting The Cost Of Monitored Home Security Systems

The mechanics of purchasing a monitored home security system generally fall into one of two payment options:

  1. First payment option is to pay out of pocket the full cost of the system’s equipment, installation, and other administrative fees. Depending on the size of security system you select, the cost will range between several hundred to several thousand dollars for the upfront cost. Additionally, you will have the cost of monitoring your system. Some companies will allow shorter term monitoring contracts and some companies may give you a lower monitoring rate because you paid for the entire system upfront.
  2. The second payment option is what you will see advertised the most. Usually basic system coverage (2 or 3 door sensors & 1 motion detector) with an average upfront cost of $99.00. The lower upfront cost option is made possible because an alarm monitoring agreement of 36 months is required. Monthly rates will range from acceptable to outrageously expensive. This provides enough revenue to cover the cost of equipment, installation, monitoring and of course, profit.


The decision making process continues. You now have to choose a security alarm company that is reputable, highly rated and provides the best product and service for the least amount of money.

Become an educated consumer and shop around before you commit to any long term contracts and know exactly what you will get and what it will cost you. The next series of articles will focus on what we see in the market and, hopefully, will provide some buying tips.

First Tip, don’t believe for one moment that big named national companies like ADT and XFINITY (Comcast) are the best at anything. Go on line and see how real customers review both companies. Please follow our next few articles to learn more.

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