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The term “takeover” in the security business describes the process by which a new alarm company takes over the monitoring of an alarm system from another company.  This process involves redirecting the alarm system to another central monitoring center.  However, some alarm systems are not reprogrammable and will require a new keypad and control panel (the brains of a security system) to make a workable alarm system or a GSM unit if the customer wants to use the AT&T Cellular network.

There are several reasons a customer would switch monitoring companies:

• Existing Company is too high priced
• Original Local Company went out of business
• Customer wants to add GSM cellular service
• Customer wants to add video service

Most alarm monitoring agreements between an alarm company and its customers involve a contract of from one to five years.  However, many alarm subscribers are on a month to month basis and are not contractually bound to the alarm company monitoring their system.  Alarm subscribers without a contract can cancel their service without any penalties and are free to move to another alarm monitoring company, provided they either own the alarm system, or if they don’t, are going to replace it.  If the alarm subscriber is leasing or renting the system, the alarm company owning the equipment has the right to remove it from their former customer. If this is the case,the subscriber simply has to request in writing for the alarm company to remove the equipment in 30 days.  If they do not the equipment is yours.

Alarm companies cannot take over another alarm company’s subscribers under contract, unless there are justifiable legal reasons which invalidate the contract.  Alarm subscribers that break an alarm monitoring contract without just cause, are usually subject to financial penalties by the former alarm company.

Most alarm companies have an automatic renewal clause which goes into effect immediately after the termination date of the contract.  The renewal term is usually for one to five years and it’s not necessary for alarm subscribers to sign a new contract.
These contracts usually require the alarm subscriber to provide the alarm company with a thirty to ninety day notice of cancellation prior to the expiration date of the contract.  It’s important for subscribers to give written notice of their intent to cancel to the current alarm company prior to the specified renewal date, so the contract does not automatically renew.

Before allowing a new alarm company to do a “takeover”, alarm subscribers should read their contract to see if it has expired, or automatically renewed and who owns the alarm system.

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