No Contract Monitoring from Premier Securityby Chris Anderson, Premier Security Service Manager on 03/14/10
No Contract for a very good reason.
Many home and business security system monitoring companies require customers to sign contracts of 3-5 years in order to install and monitor their security systems. There are several good reasons not to sign a contract when searching for your security system provider. Local research will find you a number of regional security system monitoring companies offering security services with no contract required.
1) Companies state that contracts are to guarantee their monitoring rate. However, they should guarantee the monitoring rate without the need for a contract and effectively provide monitoring at competitive market value.
2) Beware the contract automatic extension. Most consumers believe after the initial term of the contract they are then on month-to-month. Read the fine print if you are signing a long term contract. Most companies have automatic renewals of one year if you fail to provide cancellation within 60 days prior to the end of the original contract.
3) If you are moving or unsatisfied with the service from your security provider, breaking the contract early can be costly. You may be liable for hundreds of dollars in monthly monitoring fees for the remainder of the contract, or a payoff balance.
4) Find out how long the warranty period is on the equipment being installed. Should you need service work outside of the warranty period, many companies are charging $150.00 per labor hour. Contracts force you to pay the amount dictated by these companies. 2.5 labor hours is the cost of a brand new security system installation!