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Be sure to compare bids on similar systems. Do not forget to factor in the initial installation charge, as well as monthly monitoring fees. Also, talk to your insurance agent; some systems may qualify you for a discount on homeowners premiums. Know the ins and outs of your contract. If your alarm system will be monitored, either by your installing company or by a third party monitoring center, find out the length of the contract. Typically, monitoring contracts are two to five years in length.