Property Management
Frequently Asked Questions, cont.

Do I need a sprinkler system in my building?

The answer to this differs depending on whether you are a building owner or a building tenant.

An owner is always better off if his building is sprinklered because insurance rates are lower and most tenants prefer a sprinklered building.

A tenant is better off with a sprinkler system because the insurance rates for his product will be lower, and because the business is likely to suffer a shorter interruption if a fire is extinguished early. However, if the tenant stores metal materials that would suffer more from the water damage, he may prefer not to have a sprinkler system.

It is important for the tenant to speak with his insurance company about this before beginning the process of looking for a building in order to determine the difference in insurance rates for its products. We have seen a difference in insurance that amounted to as much as 5 cents per square foot additional cost for certain companies if they did not have a sprinkler system. 

Furthermore, some buildings will have a fire sprinkler monitor that indicates water flow, which in turn indicates a possible fire. This water flow triggers an alarm system, and the fire department can be immediately dispatched.

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