NFPA: Total Cost of Fire in U.S. Almost Doubled Since 1980

The total cost of fire has increased by 86 percent since 1980, according to a new report released by the National Fire Protection Association (NFPA).

Based on data from 2007, the complete total cost of fire is estimated at $347 billion, making up approximately 2.5 percent of the U.S. gross domestic product (GDP).

The complete total cost of fire is defined as the sum of economic loss (e.g., property damage, business interruption), human loss (e.g., lives lost, medical treatment, pain and suffering), and the cost of provisions to prevent or mitigate the cost of fire (e.g., fire departments, insurance, and fire protection equipment and construction).

Other key findings from the report: Although the core total cost of fire increased, the economic loss due to fire decreased by 13 percent since 1980, totaling $18.6 billion.

The total cost of direct property damages, reported or unreported, totaled at $16.6 billion. This figure represents 90 percent of the economic loss. The other 10 percent represents indirect losses, such as business interruption.

Human Losses are Estimated at $42.5 Billion.

NFPA has been a provider of fire, electrical, building and life safety to the public since 1896. The mission of the international nonprofit organization is to reduce the worldwide burden of fire and other hazards on the quality of life by providing and advocating consensus codes and standards, research, training and education.

For fact sheets on the total cost of fire, visit www.nfpa.org/research. FSM