How Fire Loss Is Calculated

1/19/2021 (Permalink)

After a commercial fire, you will probably hear something about your fire loss or your losses directly related to the disaster. Here are some key points that can help you understand what this is and how it is calculated.

The Purpose of It

One of the main reasons fire loss is calculated is that it helps understand how severe the disaster was. Knowing how much loss an area sees will give communities an idea of whether they need to increase the amount of fire protection or not.
A fire loss estimate is also good for identifying situations with high monetary losses. The fire department officials can look at the losses and determine which situations could have benefited from more force and which could have used less. This helps fire departments establish what equipment and practices they will need to use in different situations.

What Is in the Calculation
Here is a rough outline of what is included in the calculation:

• Calculate the total monetary loss due to fire damage to structures
  
• Add contents directly damaged by the fire, smoke, or extinguishers
  
• The fire loss total will not include indirect costs, such as business interruption or fees for a remediation company
  
  

Documenting Fire Loss
To document fire loss, an official will estimate the total pre-incident value of your structure and contents. Then, they will document the monetary losses you incurred due to the fire. They will generally round numbers since this is a rough calculation. However, after the initial report is submitted, it can be edited if more accurate details are uncovered. Damage to adjacent properties will also be included in the report because it is based on the incident, not the property.
Getting an estimate for how much loss you incurred due to fire and smoke damage in Smith Village, OK, is something that the fire department will use to improve its operations. It will generally include the total direct monetary loss incurred on all properties involved.