Short answer
A home security system costs money in four places: the equipment, the installation, the monthly monitoring fee, and the agreement that locks that fee in for a set number of months. Advertised deals usually discount one of the four and make it up in the others, so the only useful number is the total over the life of the contract.
- Self-installed kits cost the most up front and the least per month, and usually have no contract.
- Professionally installed systems often come with a large equipment credit, an installation charge, a monthly monitoring fee and a 24 to 36 month agreement.
- Early termination fees, permit fees and a credit check are common and are stated in the terms.
- Add up equipment, installation and every monthly payment before comparing offers.
The four costs in every system
Ready to compare providers? See our comparison of the best home security companies, with the service we work with reviewed next to self-installed kits and local dealers.
Whatever brand is on the box, you are paying for the same four things. Offers differ in which of the four they discount and which they quietly raise.
- Equipment. The control panel or hub, door and window sensors, motion sensors, cameras, a doorbell camera, smoke and carbon monoxide detectors, and a siren. A basic package covers a front door, a back door and one motion sensor; everything else is an add-on priced per device.
- Installation. Either your own afternoon with adhesive strips, or a technician who mounts, wires and tests everything. Professional installation is charged as a flat fee or folded into the first bill.
- Monitoring. The monthly fee for a monitoring center that responds when an alarm trips, calls you, and dispatches police or fire if needed. This is where most of the money goes over the years.
- The agreement. Professional monitoring usually comes with a contract of 24 to 36 months. The contract is what makes an equipment discount possible, and it is why leaving early costs money.
Two of these costs are easy to see (equipment and installation) and two are easy to overlook (monitoring and the agreement). Reverse that habit: when you compare offers, start with the monthly fee multiplied by the number of months, then add the upfront charges.
Three ways to buy, and what each costs
| Route | Upfront | Monthly | Contract | Who it fits |
|---|---|---|---|---|
| Self-installed kit, self-monitored | You buy the equipment outright | None, or a small app fee for cloud video | None | Renters, small homes, people who will answer their own alerts |
| Self-installed kit, professionally monitored | You buy the equipment outright | A monitoring fee, often month to month | Usually none | Homeowners who want 24/7 response without a long agreement |
| Professionally installed and monitored | An installation or activation charge; equipment often credited or financed | A higher monitoring fee that covers the equipment credit | 24 to 36 months is common | Larger homes, people who want it done for them, anyone who wants a technician to place the sensors |
The pattern is simple. The less you pay up front, the more you pay per month and the longer you are committed. None of the three is wrong; the mistake is comparing a kit's sticker price with a dealer's monthly fee as if they were the same kind of number.
A typical professionally installed offer today reads like this: the equipment is credited rather than sold, you pay a one-time installation charge, and you sign a monitoring agreement of 24 to 36 months at a fixed monthly rate. Multiply the rate by the months and add the installation charge, and you have the real price. A comparable self-installed kit with month-to-month monitoring can cost less over three years, but you buy the equipment and place every sensor yourself. Which is better depends on how much your time and a technician's judgment are worth to you.
What monitoring actually costs
Monitoring is the recurring charge, and it is where plans differ most. Published plans from national providers generally fall into three tiers:
- Basic intrusion monitoring. The center responds to burglar alarms and often smoke and carbon monoxide. The cheapest tier.
- Interactive or app monitoring. Adds remote arming, alerts on your phone, and control of locks or thermostats. Most providers steer you here.
- Video monitoring. Adds cloud storage for cameras and, with some providers, a human who watches live video when an alarm trips. The most expensive tier, and camera storage can be billed per camera.
Three things move the monthly number: whether the equipment is being paid off through the fee, whether cellular backup is included or extra, and whether the first-year price is a promotion that rises at renewal. Ask for the rate in month 13 and month 37, not only month 1.
The charges in the fine print
- Early termination fee. With a 24 or 36 month agreement, cancelling early usually means paying most or all of the remaining months. If you might move, ask what happens to the agreement when you do.
- Credit check. Professionally installed offers with an equipment credit commonly require satisfactory credit, because the provider is effectively financing the hardware.
- Permit fees. Many cities require an alarm permit, with an annual fee and fines for repeated false alarms. The provider does not pay these.
- Activation and service calls. Some providers charge to activate a system, to move a sensor, or to send a technician after the first visit.
- Price increases. Monitoring rates can rise during the agreement unless the contract says they will not. Ask.
- Equipment ownership. With some offers you own the equipment; with others it is leased and goes back if you cancel. The answer changes what the equipment credit is actually worth.
- Automatic renewal. Agreements often renew month to month or for another term unless you cancel in writing within a notice window.
None of these are hidden if you read the terms. The problem is that the headline price is on the page and the terms are below the fold. Read the fold.
Is a system worth the money?
A monitored system does three things for the money: it responds when you are not there, it deters some would-be intruders who see the signs and cameras, and it can earn a homeowners insurance discount. The first is the real value, and it matters most for people who travel, work long hours, live alone or have older relatives at home. The deterrent effect is real but hard to measure, and no system prevents every break-in. The insurance discount is usually modest and requires proof of professional monitoring, so ask your insurer what they offer before you count on it.
A system is a weaker buy when you are home most of the time, when your neighborhood has low property crime, or when the monthly fee would strain a tight budget. In those cases a self-installed kit with a doorbell camera and a couple of sensors covers most of the risk for a fraction of the long-term cost.
How to pay less without losing protection
- Start with the entry points. Front door, back door, ground-floor windows and a motion sensor in the main hallway cover most homes. Add cameras later if you want them.
- Price the whole term. Equipment plus installation plus every monthly payment. Compare that number across offers, not the monthly fee alone.
- Ask about month-to-month monitoring. Some providers offer it at a higher rate with no agreement. It can be cheaper if you may move within two years.
- Check your insurance discount. It may make professional monitoring cheaper than it looks.
- Skip features you will not use. Smart locks and thermostats are nice; they are also why the plan costs more.
- Get the alarm permit. It is cheaper than the fines, and some cities will not dispatch to unpermitted alarms.
Questions to ask before you sign
- What is the total I will pay over the full agreement, including installation?
- How long is the agreement, and what exactly does it cost to end it early or when I move?
- Do I own the equipment at the end? What happens to it if I cancel?
- Will the monthly rate change during the agreement? What is it after the agreement ends?
- Is cellular backup included? What happens to monitoring if my internet goes down?
- Is there a credit check, and does it affect the price?
- Who is the monitoring center, and is it the same company that installed the system?
- What is the cancellation notice period, and does the agreement renew automatically?
Get the answers in writing, in the agreement itself. A salesperson's promise that is not in the contract does not exist. If you are being pressured to sign the same day for a price that "expires tonight", that is a reason to wait, not to hurry. The Federal Trade Commission's guidance on the Cooling-Off Rule explains when a sale made in your home can be cancelled within three business days.
How we're paid: HomeownerPedia publishes free guides for homeowners. The next step on this page takes you to our comparison of your options. Companies on that page, including our partner, HomeSafe, a home security service that matches homeowners with a professionally installed, monitored system, pay us for referrals. If you continue to a partner's website from there, what you enter goes directly to it, not to us. You decide whether to move forward. HomeownerPedia is not a security company or installer. Equipment, monitoring prices and contract terms are set by the provider, and no system prevents every break-in.
Questions homeowners ask
Do I have to sign a contract for a home security system?
Not always. Self-installed kits with professional monitoring are often month to month. Professionally installed systems with an equipment credit usually require a 24 to 36 month monitoring agreement, because the credit is being recovered through the monthly fee. Ask which kind of offer you are looking at before anything else.
Is professional monitoring worth paying for every month?
It is if nobody will reliably see and act on an alert when you are away or asleep. A monitoring center responds around the clock and can dispatch police or fire. If you are usually home and will answer your own phone alerts, self-monitoring covers most of the risk for far less.
Can a security system lower my homeowners insurance?
Often, yes. Many insurers give a discount for a professionally monitored burglar and fire alarm, and a smaller one for local alarms or cameras. The amount varies by insurer and state, and you usually need a certificate from the monitoring company. Ask your insurer before you buy.
What happens if I move before the agreement ends?
It depends on the contract. Some providers transfer the agreement to the new home, some charge to move the equipment, and some treat it as an early termination. Ask for the moving terms in writing if there is any chance you will relocate during the term.
Do I need a permit for a home alarm?
Many cities and counties require an alarm permit, with a yearly fee and fines for repeated false alarms. Your provider should tell you, but the permit and the fines are your responsibility. Check with your city before the system is activated.
