KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Customer adding alarm.com components by DIY after the install
February 8, 2025
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Customer adding alarm.com components by DIY after the install
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Ken,
Scenario: We (the licensed security company) install a burglar alarm in a residential home, including the Alarm.com app. We are in the security business only, so do not install or service other "smart home" devices such as thermostats, garage doors, etc. However, a feature of the Alarm.com app is that it has the ability to bring all smart home devices together. If a customer, on their own accord, connects their thermostat to the app, and controls it via Alarm.com, and then down the road they have a heating issue that causes something like a frozen/burst pipe, are we (the alarm company) liable in any way since the thermostat was integrated with Alarm.com?
Please withhold my name.
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Response
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You are a Concierge Program Member and I know you have K&K Standard Form Agreements. I assume you are smart enough to use them.
The Residential All in One has a provision that prohibits the subscriber from tampering with or adding to the system you install. While you may have no interest in a system you sell and install and then have no further contact with [no monitoring or repair service] in which event you won’t know if anything has been added, here you are monitoring and presumably servicing, and you know about the add-ons.
Because you are an Alarm.com dealer, and in this case installing alarm.com components, you should have gotten the Alarm.Com Rider signed. That Rider will have, among all the legal necessary provisions, a list of the Alarm.com components being installed with the system. Something added after you left the job would be prohibited unless added by you, in which event you would be using the Supplemental Agreement [which is essentially an extra work order].
If you use the proper contracts you will have no exposure. If you get sued for the scenario above you should be able to extricate yourself from the case quickly [especially if your carrier engages K&K]. Even without a contract it’s unlikely you will be found liable for equipment added by the customer without your permission or knowledge. Without knowledge means that you don’t know about the addition, before or after it’s added.
If you do know the customer added components to the system [whether you have a contract prohibiting that or not] and you continue to provide monitoring services then you could be held responsible, i.e. be exposed to liability, subject to the contract, if you have one. I suppose an argument the customer or its subrogating carrier will make is that the added component isn’t covered by your contract. It’s not a great argument, but it’s something.
If you know your customer has breached your contract by adding components you should be diligent to call a default and at the very least require a new contract or modification of the existing contract. If the customer resists, call K&K’s collection department.
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Featured listings of alarm companies or accounts for sale
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If you are ready to sell or buy K&K is here to represent your legal interests in the transaction. As leading experts in the alarm/security/fire industry there is no learning curve and you can rely on our guidance throughout the process. Sellers can also look to K&K to broker the accounts or company for sale. The broker fee is one month net RMR, which is typically half of what the traditional brokers in the industry charge. If interested in listing with K&K contract Ken Kirschenbaum, Esq at 5165 747 6700 x 301 or Ken@Kirschenbaumesq.com.
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NEW For Sale: Queens, NY. Approx. 100 security alarm accounts, divided evenly between residential and commercial customers, with aggregate of approximately $17,000 monitoring net RMR. Accounts located in 5 boroughs of NYC and Nassau County. Equipment: Hirsch Electronics, Bosch Cctv, Avigilon- Access / Cctv, Speco Cctv, Honeywell – Access Control / Panic / Intrusion, Resideo Panic / Intrusion; panels: Intrusion / Panic: Vista 20, Vista 40, Vista 128, Proa7; operation software: Hirsch Velocity, Microkey Central Station Software, Avigilon- Various, Speco Blue. Service calls “per call”. For more information contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com. K&K NDA will be required for more info and to contact Seller direct.
NEW Looking to purchase residential alarm accounts: East coast. We are ready, willing and able to purchase with minimum nonsense and delay; top multiples; contact Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
NEW For Sale: Houston, Texas 350 alarm monitoring accounts; 78% residential; 22% commercial; 4 commercial fire alarms. Monitoring Net RMR $9.000; Fire Alarm Inspection and Service RMR $333 for commercial fire. Most accounts cellular, M2M cellular, some on alarm.com. If interest contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com; K&K NDA will be required for more information.
NEW For Sale: Riverside, CA: 171 alarm monitoring accounts; 90 alarm.com; 81 CMS; 43% residential; 57% commercial. Monitoring Net RMR $11.000; written contracts; Alarm.com, Uniview and Ubiquiti, 2GIG panels and Honeywell Vista; Quickbooks and alarm.com software; 3 techs; service vehicles. If interested contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com; K&K NDA will be required for more information.
For Sale: Southern California: commercial Net RMR $17,000.00; approximately 80 customers with 324 locations. No fire. Concentrated in Los Angeles, Riverside, San Bernardino, and San Diego counties. Third party vendors: Brivo, Eagle Eye, Cradlepoint. Equipment: Genetec, Brivo, Eagle Eye, Ocularius, DMP, Dell, Axis. Monitoring center: NMC. Most under K&K contracts. Panels: DMP. Significant EBITDA. More information requires a K&K NDA. Contact Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
For Sale: Nassau County, New York. approx 221 alarm accounts. residential 190; commercial security and fire 31; RMR approx $13,230.00 [res $8844; comm security and fire $2118; Inspection RMR $2268; Resideo / Honeywell; some Radionics. Vista 20P / Vista 128BPT. Most accounts on updated K&K contracts. Contact Ken Kirschenbaum,Esq at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com. K&K NDA will be required for more information.
For Sale. Phoenix area, Arizona., 181 alarm monitoring accounts [115 res; 66 commercial; commercial fire 5]. Net RMR $4700.00; DSC panel and equipment; Microkey software. Older contracts for most part. K&K NDA required for more information. Contact Ken Kirschenbaum,Esq at ken@kirschenbaumesq.com or 516 747 6700 x 301.
For Sale: Poughkeepsie, NY. Number of accounts 1580; Residential 30% or 471 accounts; Commercial 70% or 1109 accounts, Monitoring NET RMR approximately $50,000; RMR for Inspections $9,798, RMR for Service $17,345; Central Station Safeco and Affiliated Monitoring; Central Station monthly $15,414; Number of techs 7; Accounts are concentrated in Dutchess County NY; Equipment Honeywell Firelite Hikvision Unifi CDVIC; Panels Honeywell Firelite Silent Knight; Software Compass Silent Knight Software Suite HSS Strium Finder Napco Quick Loader. Contact Ken Kirschenbaum,Esq at 516 747 6700 301 or Ken@Kirschenbaumesq.com if serious buyer ready to close within 30 days.
For Sale: 15 Deep Sentinel accts; north of San Diego, Ca [one in La and one in Bay area]. RMR approx $5100; monitoring charges approx $1600 RMR. One year guarantee; 31 X; 20% Hold Back. Contact Ken Kirschenbaum for further info. 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
For Sale: Shrevesport, Louisiana over 1300 Alarm accounts; residential and commercial, over 45K RMR monitoring accounts; Kirschenbaum Contracts. mid-sized turn-key operation fully staffed with RMR and growth. Contact our attorney Ken Kirschenbaum,Esq for details. Ken@Kirschenbaumesq.com or 516 747 6700 x 301
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
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