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3. Install an alarm with an audible siren that will still sound if the phone lines are disabled. Even if it doesn't notify a security company or the local police, it will make noise that could end the invasion on the spot. Alarms also have a tendency to wake up neighbors and draw attention.
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Make a note too: Listen to the sound of the alarm system before you have it installed. There's a couple out there that make some weird "Weeep Weeep" sound. It's not enough to scare a 20 year old cat. You want LOUD. There really is no too loud. You WANT the neighbors looking out the window going "What on earth is that noise?!" It's also good (depending on location) to have a siren on the inside AND the outside. I have also seen people hook strobe lights to the alarm. That has GOT to be a surprise.