Alarm contracts usually last 3 to 5 years. Before signing, get in writing the term, the fee, what happens when it ends and what leaving early costs. If you sign at home, Florida gives you until midnight of the third business day to cancel.
1. The term of the contract
Across the industry, contracts usually run 3 to 5 years: Alarm.com reports that its installing companies sign contracts of that length with their customers. At Inhoome, the best-priced plan is 36 months, and there is a month-to-month option from day one: ask for its price.
2. What happens when it ends
Many contracts renew on their own. In Florida, when a contract renews automatically for more than one month, the company must notify you 30 to 60 days ahead and let you cancel the same way you signed up; if it doesn’t, the renewal clause is void (F.S. 501.165). Inhoome’s agreement renews month to month when it ends.
3. What leaving early costs
This is the number that surprises people most. Some national brands charge up to 75% or 80% of what is left on the contract, and reviews from customers of big brands describe cancellation charges of almost $900. Ask for this cost in writing before you sign.
4. If you sign at home
When the sale happens in your home, the law gives you until midnight of the third business day to cancel, and the contract must include that notice (F.S. 501.025 and 501.031; federal rule 16 CFR 429).
5. Red flags to watch for
The FTC warns about:
- “Free” equipment tied to a long contract.
- “There were break-ins in your area” scares, to make you sign fast.
- Fake “upgrades”: someone shows up at your door claiming to come from your alarm company.
6. The company’s license
In Florida, the contractor’s license number must appear on every offer and ad (F.S. 489.521). If it is missing, ask. How to verify a license.
Checklist to take when you sign
- Term and monthly fee.
- Total of the whole contract.
- What happens when the term ends.
- Cost of cancelling early.
- What happens to the equipment if you move.
- The contractor’s license number.
Sources for this guide
- Florida Statutes 2026: 501.165, 501.025, 501.031 and 489.521.
- 16 CFR part 429, cooling-off rule for door-to-door sales (FTC).
- FTC, tips for buying a home security system.
- Alarm.com, 2025 annual report (10-K).
- ConsumerAffairs and SiteJabber: reviews from customers of big brands.