The Home Security Contract Clauses That Cost People Money
Equipment ownership, auto-renewal, early termination and price rises — the four clauses we found in the seven agreements we signed.
1. Who owns the equipment
SimpliSafe, Ring, Abode, Cove and Arlo sell it to you outright; cancel monitoring and the kit still works, usually self-monitored. ADT and Vivint commonly finance the equipment into a multi-year agreement, so cancelling monitoring does not cancel the payments.
2. Early termination
ADT's standard agreement charges 75% of the remaining monitoring fees. On a 36-month contract cancelled at month 12, that is around $900. Vivint's equipment loan runs 42 to 60 months and survives cancellation.
3. Auto-renewal
Several contracts renew automatically, often month to month but sometimes for a further term. Some US states cap or regulate automatic renewal of alarm contracts; the notice period is typically 30 days, and it is on you to give it.
4. The price after year one
Introductory monitoring rates rise. Ask for the rate in month 13 in writing before signing, and check whether the agreement lets the company raise it during the term.
What we would sign
A month-to-month monitoring agreement on equipment we own. That is SimpliSafe, Ring, Cove, Abode or Arlo. A contract only buys you something when a technician is installing a large or complicated house.
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