Improved ISO Rating Allows Residents a Fire Insurance Cost Reduction

Effective November 1, 2016 the new split-class 2/4 rating could result in potential savings in fire insurance premiums for Montgomery County ESD 7 residents and businesses.  The meaning of the split-class ratings are: (Class 2) Residents & businesses that are serviced by a water districts with fire hydrants and are within 5-miles of a fire station. (Class 4) Residents & businesses that are or not serviced by water districts without fire hydrants and are within 5-miles of a fire station.

• Class 2:  Printable ISO Letter for Insurance Companies

• Class 4:  Printable ISO Letter for Insurance Companies

The ISO rating plays an important role in the underwriting process and pricing structure used by insurance companies. ISO is the leading supplier of data and analytics for the property/casualty insurance industry. Most insurers use ISO’s Public Protection Classification (PPC) number for underwriting and calculating premiums for residential, commercial and industrial properties.

ISO evaluates each community according to a uniform set of criteria as defined in the nationally recognized standards developed by the National Fire Protection Association (NFPA) and the American Water Works Association. A community’s PPC number depends on several factors:

• Emergency Communications: How well the department receives and dispatches fire alarms.
• Fire Department: The distribution of fire companies throughout the area; how well the department tests its pumps regularly and inventories each engine and ladder company’s equipment.
• Water Supply: Is there sufficient water supply for fire suppression beyond daily maximum consumption.
• Community Risk Reduction: Recognizes communities that employ effective fire prevention practices.