How does inspections affect my insurance rate?  Buildings which are completely sprinklered enjoy special reduced rates. However, if the insurance company does not receive verification of system inspection, penalties in the form of higher insurance rates apply.

The Insurance Services Office (ISO) publishes a Commercial Fire Rating Schedule (CFRS). Section 402 of the CFRS requires building owners to have annual inspections of sprinklered systems to enjoy the "sprinklered" insurance rate.

If an inspection is overdue for up to 12 months, a 5% penalty applies. If the inspection is overdue for 12-24 months a 20% penalty applies. If an inspection is 24-36 months overdue, a 60% penalty applies. If after 36 months an inspection is still not performed, a fully sprinklered building is rated as "Unsprinklered" for the purpose of insurance, with no credit allowed.

Check with your insurance carrier about the rate for your building. Even though it is fully sprinklered you may not be getting as big a discount you're entitled to. Get your sprinkler system inspected and take full financial advantage of your fire sprinkler system.