The economics of fire protection: Fast-response residential sprinklers

This paper develops and applies in selected cases a benefit-cost model for evaluating the economic efficiency of providing fire loss mitigation through the use of a newly adapted technology: fast-response, residential sprinkler systems. The model calculates present value net benefits as they would accrue to the owner of a system. The nine selected hypothetical cases pertain to new, single-family dwellings in the United States. The cases assume an 'average' level of fire risk to the homeowner as indicated by recent. US aggregate fire loss statistics, and sprinkler system effectiveness based on the results of laboratory and field tests. Break-even values are calculated for key decision variables. The model can be used to evaluate the economic efficiency of home sprinkler investments under alternative conditions. The results that are presented here, though based on hypothetical cases, have implications of interest to members of the research and building communities who are concerned about the economics of home fire protection.