4.9 Allocation of costs and benefits by stakeholder group Examining how costs and benefits accrue to different stakeholders in greater detail is worthwhile. Doing so will help proponents of the National WUI Guide understand the interests of decision-makers who follow or decline to follow the National WUI Guide. Table 42 lists stakeholder groups and quantifies how those costs and benefits are distributed. See Multi-Hazard Mitigation Council (2020) for background on this allocation and for ideas on how to align the interests of different stakeholder groups. Table 42. Allocation of costs and benefits among stakeholder groups Stakeholder
Costs
Benefits
Developer
CC1 and CC1(FR) costs. Not quantified here: cost to understand and adapt to National WUI Guide recommendations; possibly costs to educate suppliers and contractors.
Lower fire insurance overhead and profit costs during holding period, perhaps 2% of the total of these benefit categories.
First owner
Construction costs transferred from developer; vegetation maintenance costs.
Lower insurance overhead and profit cost. Assuming a 10-year ownership period, perhaps 15% of the total of these categories. Possibly higher resale value (not quantified here).
Later owners
Vegetation maintenance costs; possibly higher purchase price (not quantified here).
Like first owner. Lower risk of death, non-fatal injury, and PTSD. Lower content loss. Lower insurance overhead and profit costs for people with renter’s insurance. Lower displacement costs, especially uninsured renters. Benefits in these categories in proportion to tenancy period as a fraction of the 75-year life of the property. Non-monetary losses not quantified here: mementos, peace of mind, and pets.
First and later renters and owneroccupants
Insurer
Data collection, management, and actuarial analysis associated with policy underwriting that recognizes satisfying National WUI Guide (not quantified here).
Lower building and content claims, lower additional living expense claims, lower claims management costs. Benefits in these categories in proportion to policy life as a fraction of 75-year life of the property.
Lender
Data collection, management, and actuarial analysis associated with mortgage underwriting that recognizes satisfying National WUI Guide (not quantified here).
Lower mortgage default risk (not quantified here).
Municipality
Policy analysis and development plans; paving; added access routes; firefighting response planning, evacuation planning, and resources; planning for buses, watercraft, and emergency communication; public education development and implementation.
Reduced firefighting and other first responder monetary costs and health impacts; lower debris removal costs and environmental impacts; retention of community character; reduced risk of permanent relocation of residents.
Electric and water utilities
Construction of water distribution system; vegetation management around above-ground lines; undergrounding or pole replacement (if used).
Reduced property loss; lower debris removal costs and environmental impacts; greater stability of demand, service, and revenues; reduced risk of permanent relocation of employees.
Taxing authorities
86
Provinces enjoy a varying fraction of indirect business interruption benefits (generally 10%) through HST stability. Federal government enjoys 5% of indirect business interruption benefits through GST stability.
