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Kitov:
We heard about the defective Federal Pacific panels during the insurance investigation of our fire. In our case, the fire resulting from a defective circuit breaker on the heat pump circuit within a different brand of panel. The smoke alarm went off, the fire department arrived within a few minutes but the house was a total loss (mix of fire and smoke damage). The fire investigator indicated that a sprinkler system might not have put out the fire entirely but would have slowed its progression considerably until the fire department arrived and also would have minimized smoke damage which as many of you know, is generally more destructive than structural damage. Obviously, all those who say that good smoke detectors are better than nothing is true along with other common sense fire safety measures to escape the fire. However, from a property damage perspective, sprinkler systems are great investments (especially where you can also afford to install a backup generator like we did to protect against frozen pipes in the event of a power loss).
P.S. Servpro handles both smoke damage from a fire and water damage from burst sprinkler system pipes.