Savings Through Sprinkler Retrofit
sprinkler system, retrofit, tax rebate, insurance rates July 16, 2010
Sprinkler systems are an important part of a fire/life safety system, but many existing buildings were built before they were required by code and many facility mangers balk at the challenges posed by retrofitting a system in an existing building. But the benefits of such system extend even to the bottom line. Maybe some of these figures can help you make a retrofit case to your C-suite.
The most immediate financial benefit is in insurance rate reductions. According to experts, with a sprinkler system an office building can reap a 46 percent reduction in insurance cost for the building and a 43 percent reduction for the contents. This estimate is based on a 10-year-old, 10-story, 110,000-square-foot masonry-construction facility with typical contents and occupancy.
The trick to cashing in on this benefit is to keep up with annual inspections and testing and to make sure the results are sent to the insurance company. Once a facility is overdue by a year for its inspection, the rates start to climb back up, typically by 5 percent the first year, 20 percent the second year and back to unsprinklered rates once a facility is overdue by three years or more.
Other immediate savings are available through income tax deductions.