As a result, homeowners with a security system may experience hearing damage over the years.
Why is this allowed?
Pretty much the only way I've ever seen door alarms configured.
The way yours is configured would result in a "Crying Wolf" situation where everyone is so used to hearing it go off they'll just ignore it as usual if there is an actual breakin - just like car alarms at apartment complexes.
Maybe yours is different, but every alarm system I've seen lets you configure this so that the alarm doesn't go off for a short period of time, to give you a chance to enter the passcode before the deafening begins.
You want the alarm itself to be deafening. That's what makes it effective as an alarm.