It is therefore important for homeowners to make the right decision when it comes to choosing whether or not to install a home alarm system. Although they do provide an element of safety, they are not cheap and thus do represent an investment. As is the case with most major home improvement projects, substantial time should be spent in the process of selecting the alarm system to be installed as well as in the process of selecting the best deal. You will find below a comprehensive analysis of the various aspects that determine the costs and prices of the home alarm systems available in the market today.

Upfront Equipment Costs

The main cost factor when it comes to Home Security Systems is the initial cost of the equipment. This includes control panels, motion detectors, door/window sensors, smoke detectors, sirens, keypads, yard signs, and window decals. Like most home security services, most home security companies either expect you to buy the equipment or pay for it in installments and interest-free for the agreed service period. Plan on spending anywhere from $300 to $1500+ for your first alarm system equipment. 

  • Type of system: They are cheaper than hardwired systems since installation is much easier in wireless systems. There is no need to drill holes and run the wire all over the house. The prices for entry-level systems with the simplest set of functions cost between $300 to $500. Solutions with video monitoring, home integration, and total home automation potential may range from $1,500 or more.
  • Square footage: They pointed out that in large homes it is easier for intruders to get in because it may be difficult to cover all the points of entry because of the number of surveillance equipment needed. You have to install extra motion sensors, contacts, keypads, and other devices. The cost of small systems for apartments/condos starts at $300. In large systems for estates over 5,000 square feet, it costs more than $3,000.
  • Equipment quality: As might be expected, the quality of the equipment is a central factor that can be either a strength or a weakness for a company. Store-bought DIY systems are also more susceptible to tampering than professionally installed ones. They may encounter problems with their performance or their wireless connection will not be stable also. Systems installed by professionals are also more reliable, particularly the new-generation smart home systems. The going rate for going pro is at least $750. Advanced systems with interactive capabilities are, as a rule, costlier than $1,500.

Monitoring/Subscription Fees Many home security systems need professional monitoring which you pay every month. It is one of the costs that are easily disregarded during such planning. Monitoring fees range from $15 to $60 monthly depending on the services chosen and the contract period. 

  • Contract length. The longer 3-5 year contract will be cheaper per month than the month to month which will be around $60 per month. This is indicative of the monitoring company subsidizing the cost of equipment in the long run. Sometimes one might be required to pay an activation fee especially if the user is going for the month-to-month plans. If one wants to commit for 3 years, the fees could be as low as $20 per month at the start.
  • Level of service. Basic monitoring is limited to reacting to the sensor activity. For $15 to $30 per month, the provider will send out the emergency response team in case of a trigger. The additional features of fire/medical monitoring may cost another $10 to $15 extra per month. Other features such as video review, environmental monitoring as well and compatibility with home automation will gradually raise subscription fees too. This feature can cost as little as $15 or as much as a few dollars more per month.
  • Interactive services. Wireless options for control panels, built-in control systems with smart speakers, and remote monitoring with a wireless application have gained much popularity. While helpful, these interactive services are usually charged at an additional cost in addition to the equipment and basic monitoring charges. It also depends on the features activated, the interactive services can cost between $10 and $30 extra on the monthly bill.

Other things being equal, the following are some of the factors that affect the overall costs: When tallying up total costs, homeowners should consider other factors that alter pricing: When tallying up total costs, homeowners should consider other factors that alter pricing:

  • Professional installation. It is worth knowing that DIY installation does indeed save some money. However, it is worth remembering that most home insurance companies require professional installation/activation of home security systems before they can offer premium discounts. Hiring the services of a security company to purchase, code, and trigger the system usually increases the cost by $100-$300+.
  • Extra fees. Before signing any alarm monitoring contracts, make sure to read through all the small prints. The likes of yard signs, activation fees, cellular communication fees, and early termination fees bring the overall investment up very fast. Also include county fees and insurance policy deductibles for any false/unintentional alarm triggers. Each of them can together sum up to hundreds of extra dollars in the long run.
  • Home automation integration. Security monitoring of homes can also be integrated with other smart devices to offer total home control and surveillance from one app. However, this functionality incurs extra costs for all the different lighting controls, thermostats, door locks, and smart cameras required. You should expect to pay $500 or more extra to get a fully integrated smart home alarm system.
  • Expandability/upgrades. Ideally, home alarm systems must have some flexibility or expansion regarding the growing demands of the family and more advanced technologies. To upgrade sensors or cameras in the future, for instance, one has to incur expensive costs to rebid and alter the current system. When choosing the initial equipment, this is why you should try to plan for future upgrade requirements.

What is the Cost of Professional Installation & Monitoring?

Analyzing national averages, the professionally installed alarm systems, with professional monitoring, cost from $30 to $100+ in monthly fees. Taking into consideration the equipment costs, most homeowners spend $1,500 to $3,000+ for the fully installed system with a multi-year monitoring agreement. Here is a pricing sample from two top security providers: 

Vivint Smart Home: $599 for equipment + $599 for installation + $59. 99/month Vivint has a 5-year contract, and for their mid-tier system, they charge $599 for installation. The professional installation costs $599, and the basic package with monitoring and some home automation features costs $59. 99 per month. The total cost of the loan over the 60 months is $4194.

ADT Security: $549 for the equipment + $99 for installation + $41. 99/month The equipment content of the ADT Starter Kit is basic and costs $549. Installation costs $99 while activation fees are not charged to customers who opt for multi-year service. The first level of professional monthly monitoring is $41. 99. All the fees in the 3-year contract amount to $1,636.

Bottom Line

Today’s home alarm systems offer homeowners complete protection, environment control, home automation, and even home entertainment and videos. Yes, these advanced systems are relatively expensive compared to the traditional ones. But they also provide priceless assurance and comfort. Review the requirements and make sure the total cost of the equipment and monitoring service is calculated accurately. Also, it is essential to know if there are any rebates or incentives for utility companies or insurance providers that bring down the actual costs of the investment.

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