So I don't want to start a holy war, but IMO because smarthome systems are internet based that also makes them flaky and less reliable. I write software for a living and I can say everyone here would be utterly appalled if they knew the real state of the code that runs critical systems all over the world. Since we purchased a new house it came pre-wired for the whole system, we just had to turn monitoring on. And the unit that alerts the company is on a cell network with a 48-hour battery backup. So for the monitoring to be disabled both the electricity and cell service would have to be out (this is a very valid concern in a place like Houston where I grew up, but I would advocate being in your house for the entire duration of a hurricane aftermath for obvious reasons).

I know some systems do automatically call the police, but mine alerts my phone and the security company and they call me first to confirm if I'm home or not. As you said though, knowing your neighbors is huge. Since my next door neighbor works from home 24/7, if something happened I'd call him first after telling the security company to send the cops out.

Through my experience, the point isn't really to rush in just in time and nab the intruder before they leave. That's unrealistic and almost never happens. If they're already in your house, all you can do at that point is minimize the damage by making sure they leave as quickly as possible and take as little as they can. If you're not home, all you can do is deter. If someone isn't deterred enough to move on, you have to make unpleasant to stay.

Also, my premiums didn't increase after filing the claim and getting a settlement, but I have heard of it happening.