Recently, NFPA published a study by John R. Hall, Jr. on TheTotal Cost of Fire in the US. To see the complete paper click on the link provided.

The core of the total cost of fire was $134.2 billion in 2007. Other cost components that have been estimated only in one-time special studies may add about $42.3 billion to the total. Human losses, which many people resist converting to dollar equivalents, would add $42.5 billion in 2007 if valued along the lines discussed in this report. And the value of the donated time of volunteers is very roughly estimated as $128 billion, using the rough bases of valuation discussed here.

Adding these all together produces a total value affected by fire - lost to fire, spent to avoid or deal with fire, or donated to avoid or deal with fire - of $347 billion, or about 2.5% of U.S. gross domestic product.

It should be clear by this point that most of the analysis supporting these estimates is soft and has wide bands of uncertainty. Nevertheless, the conclusion that fire has a tremendous impact on the way the U.S. uses its scarce resources is indisputable.

It also is clear that we have a dual interest in reducing U.S. fire losses – which include human losses that are among the highest per capita in the industrial world – and in seeking ways to achieve equivalent fire safety at lower costs, since the growth in total cost of fire has been led not by the fire losses but by the other cost components. This provides a clear indication of need for product innovations or other programs (e.g., educational) that can improve fire safety at the same or lower costs. It also shows the need for improved methods (e.g., models) for calculating fire performance and costs, so the implications of different choices can be considered and judged more comprehensively.