7 Quote Red Flags Checklist

A printable one-page checklist of the 7 quote red flags every homeowner should run before signing — auto-renewal, escalators, 'free' equipment trap, and more.

A One-Page Quote Audit from SecurityCompass HQ

Version: 2026.05 Free, no paywall. Print and use at the kitchen table.

A security salesperson just left. You have a quote in front of you. Before you sign, walk these seven items.

If you can't get clear written answers to any of these, that is itself an answer.

RED FLAG 1 — Contract length over 36 months

Look for: "36-month term," "48-month term," "60-month agreement"

Why it matters: Long contracts compound every other risk on this list — escalators, ETFs, equipment lock-in. 36 months is the industry baseline; longer contracts are usually structured to make "free equipment" deals work for the seller.

Question to ask: "What is the shortest contract length you offer? Is no-contract monitoring available?"

RED FLAG 2 — Auto-renewal with a narrow notice window

Look for: "Automatically renews," "rolling renewal," "month-to-month after initial term"

Why it matters: Some brands renew silently into another multi-year term. Some require certified-mail notice in a specific 30-day window. Miss the window and you're locked in again.

Question to ask: "After the initial term, exactly how do I cancel? What is the notice window? What method is required?"

RED FLAG 3 — Monthly rate escalator

Look for: "Subject to annual adjustment," "may increase by up to X% per year," "CPI-indexed," "rate may change with notice"

Why it matters: Even a 3% annual increase on $50/mo becomes ~$58/mo in year 5. Lock-in plus escalator is the #1 hidden-cost pattern in the industry.

Question to ask: "Is the monthly rate locked for the full contract term, or can it increase? If it can increase, by how much per year, and is there a cap?"

RED FLAG 4 — "Free" equipment

Look for: "Free panel," "free installation," "free smart home equipment"

Why it matters: "Free" usually means financed under a separate equipment agreement OR recouped through a longer contract. If you cancel mid-term, you may be charged for the equipment as if you bought it.

Question to ask: "Is the equipment financed under a separate agreement? What happens to it if I cancel? Do I own it or lease it?"

RED FLAG 5 — Vague insurance discount promise

Look for: "Up to 20% off your home insurance," "qualifies for insurance discount"

Why it matters: The actual discount varies by carrier and is usually 5-15%, not 20%. "Up to" with no specific carrier named is marketing copy, not a promise.

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