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Alarm contractors may want to branch out in providing security, servicing, and warrantees regarding personal data and private network protection, according to a white paper titled “Protect the Connected Home: Home Security Meets Personal Privacy” from Parks Associates.

As end users continue to add “smart” IP/Wi-Fi devices to their domiciles their interest in some form of smart device support services is growing quickly, Parks said. Two issues seem to have the most concerns for consumers:

1) Desire for Warranty/Insurance plans that cover all connected devices, including DIY installed equipment; interest has grown 50% from 2019 to 2021, with overall appeal of “Home Device Support Services” reaching 70% of survey participants.

2) Service that monitors devices and network functions 24/7/365 to annunciate trouble conditions to help proactively resolve problems.

Many consumers also need help hooking up their devices. 36% indicate that they have difficulty getting apps and related software to work properly; 39% indicate that they have challenges with getting devices to interface with other devices.

Data security is a visceral concern, with close to 70% surveyed concerned about the possibilities of installed smart devices enabling the “leakage” of their personal data from other networked devices.

Consumers also indicate their concerns about “Big Tech” having access to their private data.

Yet despite this interest, only 21% of dealers who provide professional monitoring also offer service agreements for non-alarm smart devices. Another opportunity that dealers may be missing: There is a strong interest in warranty services that “guarantee” that protect consumers against unauthorized access to their data.

SUBHEAD: Pluses and Minuses

Consumers are increasingly buying extended warrantees and service agreements when purchasing large “white goods” such as dishwashers and refrigerators. The value to security dealers upselling data/network services is obvious; increased RMR from new and existing accounts. However, the downsides of providing these services need to be carefully considered and such service agreements need to be carefully crafted. In today’s world it would be dangerous for a dealer to “guarantee” that a client’s data will remain private; IP, Wi-Fi, and Internet connections all offer some level of access to client devices from “bad” actors. Data also can be compromised from outside the client’s network.

Another potential problem for dealers is the ability to fix or replace problematic non-alarm smart devices. Most low-cost DIY devices cannot be field repaired, so a problem component must be replaced. The original component may well be obsolete and no longer available, so replacing, say, a defective smart thermostat with one from another vendor may well require not only replacement and connection of the new thermostat but also reprogramming/adding apps to clients’ smart phones. Time is money, along with the added cost of a new replacement device.

Another consideration is the overall liability for a dealer selling data protection services. After a violation, the cost to the end user may not be easily determined. And the losses after a data breach

might continue for months or years…who draws the line on the potential loss coverage and insurance pay outs?

One option is for dealers to partner with known personal information insurers such as LifeLockTM. The dealer sells a client data protection brokered through a known major insurer with that company bearing the burden of any client claims.

There may be RMR opportunities in non-alarm smart home device and personal data protection, but dealers should weigh the pros and cons before launching these services.

Security Equipment Supply (SES) is a leading wholesale security, access control, smart home and audio/video equipment distributor in the U.S. with 40 years of experience serving installation professionals. We carry a range of low voltage and security equipment, and our knowledgeable salespeople can help dealers with selecting the right equipment for their installations.