State of the Art Methodologies for the Estimation of Fire Costs in Buildings to Support Cost–Benefit Analysis

Fires can lead to costly building damage as well as loss of lives and injuries. Installed to protect buildings from fire, or to limit the damage from such outbreaks, fire protection measures are a common feature in buildings. However, these features come at a cost. Although quite ubiquitous in buildings, the value of these features to private individuals and to society is not fully understood. To understand their value, a cost benefit analysis detailing the costs and benefits of fire protection measures is needed. Carrying out such an analysis requires methods for computing both the cost of these fire protection measures, and losses from fires (including both direct and indirect losses). This study outlines methodologies for evaluating those costs and losses. An exhaustive collection of available data necessary for estimating both costs and losses is presented. Several limitations in current methodologies and data constraints were identified, with recommendations proposed to address these shortcomings. Relevant sections of a study by the authors that refines fire protection cost estimation at national and sub-national levels are emphasized, including updated building categories, guidance on computing multipliers, and detailed cost calculation methods for installation and maintenance costs. The calculation uses regularly updated U.S. Census Bureau construction data, ensuring timely multiplier updates. The insights and suggestions presented in this study will ultimately refine the process of selecting fire protection strategies that maximize the net benefit of fire protection measures for both private stakeholders and society at large.