What is the standard price of an alarm system?

Along with its pricing, the concept of an alarm system has evolved dramatically over the past few decades. When monitored systems were first introduced in the 1980s, alarms shifted from being considered a product to a service, and many companies established a monthly fee for clients in addition to an introductory installation charge. If they opt for an alarm that links directly to an emergency call center, homeowners can expect to pay anywhere from $25 to $45 dollars a month, depending on the intricacy of their system.

Most monitored systems come with a minimum 3-year service contract, but some allow for a month-to-month obligation. The contract locks in your rate and warns that if you exit the agreement prematurely, you will have to pay a fine. Therefore, if you sign up for 3 years of service from a company and decide that you want to terminate the contract after 6 months, you may have to pay monthly fees for another year in a lump sum. In addition to protecting against intrusion, some systems also monitor for smoke, heat, dangerous carbon monoxide levels, freezing temperatures, and rising water. These features usually cost extra and are more common with the security systems installed in office buildings, as they often store valuable records and inventory.

The cost to install an alarm system in a residential location typically ranges from $100 to $800, which covers the price of equipment like motion detectors, glass sensors, keypads, and door contacts. Adding a warranty to cover these products could tack another 5 to 10 dollars onto your monthly monitoring rate. Security systems for businesses and larger homes can cost upwards of $4,000 for installation and equipment, with surveillance cameras or CCTV (closed circuit television) representing the majority of this expense. Employers usually install these cameras to prevent theft, vandalism, and workplace harassment. CCTV also allows business owners to keep watch over large property areas that cannot constantly be monitored in person.

Another common feature that larger businesses install along with their alarm systems is access control. A lot of companies store sensitive information and materials in their offices and can only allow approved employees to enter. In order to restrict admission into a facility, an alarm company will arm the building with a system that is only accessible with the necessary smart cards, bar codes, and photo badges. If business owners want to track when employees are coming and going through access control, this service will cost an additional $200 to $600 each year. Some of the larger security systems for businesses come with an annual service rate, as opposed to a monthly monitoring fee that most home systems have.

As you can see from this outline of estimates and ranges, there is no such thing as a standard price for an alarm system. With each company offering competitive prices and an endless list of features, your budget and your personal security needs will likely determine which system works best for you. Once you contact a specific alarm company and express interest in a system, the company will usually send a representative to assess your property and give you a more specific quote. The following are several details to consider that may affect the pricing of your alarm system:

For residential security systems:

1. Do you live in a single family home, a townhouse, a condo, or an apartment?
2. Do you own or rent this property?
3. Is your home prewired for a security system?
  • 3.1. This will affect the cost of hard-wired systems only.
    4. Does your home exceed 3,000 square feet?
    5. How many levels is your property?
    6. Are there more than five bedrooms?
    7. How many doors and vulnerable windows do you want to protect?*
    8. Does the main door have a deadbolt lock?
    9. Do you have a finished basement or attic?
  • 9.1. This will affect the cost of hard-wired systems only.
    10. Do you have kids? If so, what are their ages?
    11. Do you have pets?
    12. Do you travel often?
    13. Do you have a residential phone line? If so, do you often lose phone service?

    *A vulnerable window is a lower level window hidden from plain site or an easily accessible second-floor window that a burglar could potentially enter.

    For commercial security systems:

    1. Does your property exceed 5,000 square feet?
    2. Do you have more than 25 employees?
    3. Does your property have an existing alarm system?
    4. Do you have more than two major entry ways?
    5. Are there overhead/rolling doors than need to be guarded?
    6. Do you have a drop-tile, open, or closed ceiling?
  • 6.1. Exposed wiring may be a factor with open and closed ceilings.
    7. Do you have a safe that needs extra protection?
    8. Does your business require a monitored fire or sprinkler system?
    9. Does your insurance company mandate a UL-certified alarm system?*
    10. Do you want a tracking system with your alarm that can verify who disarms the keypad and at what time?
    11. Do you need more than one control panel/keypad?

    *Underwriters Laboratories Inc. (UL) tests and certifies products for safety in over 100 countries throughout the world. In 2006, over 21 billion UL Marks appeared on over 70,000 manufacturers' products, and many insurance companies require businesses to install UL-certified alarm systems before they offer coverage.