Dizzying fine print and pushy sales reps
give home security system contracts a bad name.
I know, contracts aren't the sexiest topic out there,
but it is important to know what you're signing
before you pick up a pen.
And when it comes to home security systems,
there's a lot of details to cover.
From professional monitoring and installation
to the devices that will live in your home,
you need to spell everything out, literally.
So, how do you make sense of what you're about to sign
and what should you ask before choosing
a home security system?
We've got seven good questions to ask
before you sign any contracts.
And, stick around til the end of the video
and get a few tips on how to avoid
the contract altogether.
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But first, like and subscribe to SafeWise
here on YouTube for videos like this one
every week from myself
and our other expert, Rebecca Edwards.
All right, let's get started.
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You may not plan on canceling your home security service,
but contracts can last up to five years,
and they can hold you liable
for a large percentage of remaining monitoring,
equipment, and installation fees.
ADT's traditional plan, for example,
holds you accountable for up to 75%
of the remaining costs.
And Vivint requires a written notice
30 days before you plan on terminating
and an early termination fee which equals
any outstanding current fees, plus half
of what you will have to pay
if you stayed in the contract.
So, in many cases you can cancel,
but not without paying a large lump sum
or jumping through a few hoops.
We're not here to badmouth either of these companies,
but we do think it's important that you know
what kind of fees you might face
if you cut your contract short.
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If you're settled in a three-year home security contract,
feels like a sneeze compared to a 30 year mortgage.
That is, until you or your partner
gets transferred to another state for work.
Unexpected and expected moves happen
for tons of reasons, and throwing in a home security
system into the mix can just really complicate things.
Professionally installed systems, especially,
can be a bear to deal with when getting a new address.
Before you sign a contract, be sure to ask
the representative, or whoever
you're talking to, what happens
if you move.
Do you get to transfer your contract and equipment?
Will they remove the current equipment
from your old address?
Do you get new equipment at your new place?
And, if you leave your system behind,
will they continue to charge you?
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So, your contract is up.
Now what?
This is probably something you should ask
before you get locked in.
We recommend asking this now
because it brings up topics like
contract renewal, monthly bills,
and ownership of the equipment.
In theory, once you've paid off
your part of the contract,
the gear is yours and all you
should have to worry about is monthly monitoring.
So, after that time you might be able
to upgrade your system or change your monthly bills.
This information might not be in the fine print,
so it's helpful to know what happens
after you've fulfilled your part of the bargain.
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When you ask this question,
brace yourself for a big number.
The price might be steep, but it's really good to know
what all of this is worth together.
If you can afford paying up front,
I recommend it.
Most companies let you skip the contract
and go straight to monthly fees.
A heads up, word to the wise,
between us chickens, promises of low monthly fees
and $0 down usually come
with strings attached.
Normally, the lower the monthly fee,
the longer the contract.
You're basically leasing out this equipment
until you own it, so the more you pay up front,
the shorter the contract.
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Whether you're buying a house, a car,
or a home security system, credit checks
are pretty standard for big purchases.
And even if you have a good credit score,
it's nice to know when a company's checking up
on your finances.
This also tells you that if your credit
isn't up to their standards,
they might change their terms or refuse service altogether.
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If you're going with a big national brand,
they might not know the ins and outs
of your area's policies towards home security systems.
But, there are different laws across the country
regarding permits for home security systems
and even things like false alarms.
And these laws vary between counties
as well as states.
So, we recommend checking in with your city
or county before signing a contract.
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Customer service and installation reps
won't always go over this with you
at the right time.
And, as we all know, technology doesn't always cooperate.
Many companies keep their equipment under warranty
or give you a window of time to get repairs.
For an example, we looked at Vivint's contract.
Vivint will repair or replace any defective part
120 days after professional installation.
After that time, or if you've self installed,
Vivint will send you a replacement
for any defective part.
The trick is, you have to be the one
who physically replaces it.
If they have to come in person,
you might have to pay for service fees plus tax.
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So, I know we've made contracts seem really appealing,
but they're not that scary if you know
what you're getting into and take your time
to read them and understand them.
That said, you don't need a contract
to have a great security system.
Here's a few alternatives to handing over your Hancock.
Pay in full.
We know it's not fun, but a lot of companies
let you off the hook if you pay up in one fell swoop.
Look for a budget system.
Cheaper systems like Ring and SimpliSafe
don't offer contracts.
Why?
Because their systems are way cheaper
and don't require professional installation.
Self monitor your system.
If you want simple surveillance and sensors,
you can build a system yourself
from the ground up with third party equipment.
Just know this isn't foolproof, and professional monitoring
does genuinely help.
Contracts are meant to spell out expectations
for both parties.
So, whether it's a home loan or a home security system,
it's important to know what you're signing.
No matter what kind of contract
someone puts in front of you,
always read it, always take your time,
and always ask questions.
We hope these tips help you out.
Like and subscribe to SafeWise for new videos
every week. And, as always, stay safe.