The president of Advanced Automatic Sprinkler Company in Hayward, California has developed a presentation that helps demonstrate the affordability of owning a residential fire sprinkler system.

When Brentwood city council members were considering a residential fire sprinkler ordinance, Fred Benn’s presentation came in handy. “The council had created a task force to determine the costs involved with requiring a residential sprinkler ordinance,” stated Benn. “When the task force presented its conclusion that sprinklers were too expensive, we were ready with a slide presentation and handouts.”

Benn first broke down the mortgage information for a $400,000 home, the average price for a 3,000 square foot home in his area. The cost to install the system was estimated to be $3,000. Using a 7.75% interest rate on a 30-year mortgage, Benn calculated the $3,000 sprinkler system cost would increase the monthly mortgage by $20.47.

Next, Benn figured the tax and insurance savings for installing a residential system. With 28% federal income tax and 5% California state income tax, a tax credit of $6.10 per month resulted from the deduction of the interest portion of the additional $20.47.
Benn contacted insurance companies to gather the premium discount provided to homeowners with residential sprinkler systems. Six insurance companies gave quotes. The premium reduction for having a residential fire sprinkler system ranged from $90 to $165 per year. Using the middle quote of $136 per year, Benn calculated the savings to be $11.33 per month.

Adding all the credits together gives a total of $17.43 per month. Subtracting that from the monthly mortgage increase of $20.47 leaves an increase of only $3.04 per month for the protection of a residential fire sprinkler system.

“Basically, for the price of a Happy Meal or a Starbuck’s coffee, your family can be protected by a residential sprinkler system,” Benn commented. His efforts paid off when the Brentwood City Council passed a residential ordinance that same day. 

Editor’s Note: Sprinkler installation costs vary. On average, HFSC estimates the cost of sprinklers in new construction to be between 1 and 1.5% of the total cost of construction. Installation costs are lower where demand is greater. For example, in Scottsdale, AZ, where fire sprinklers are required in new homes, the cost to install residential sprinklers is less than $0.80 per square foot.

This abridged article from Sprinkler Age Magazine is used with permission of the American Fire Sprinkler Association (AFSA).