What is ISO?
Every Fire Agency within the United States is rated by an independent risk assessment and standards authority for the purposes of establishing insurance policy premiums for homeowners and businesses. The vast majority of States utilize the Insurance Services Office, or ISO, for this purpose.
What is their Purpose?
Owners of residential homes and property, as well as owners of commercial buildings are impacted by these ratings that are established by agencies such as ISO. They are the basis of how insurance premiums and policy coverages are established, and how many insurance companies compete to offer insurance premiums.
Insurance Carriers use a communities Public Protection Classification rating to: 1) identify opportunities for writing new business; 2) manage the quality of community fire protection across their business lines; 3) review loss experience in various rating territories; and 4) offer coverage and establish deductibles for individual homes and businesses.
In general, improving Classifications results in lower insurance premiums for our commercial occupancies. For residential homeowners it most often does not directly offer lower premiums but results in more competition for insurance and that can result in lower premiums.
What is our PPC?
ISO routinely conducts assessments of each fire agency in the United States. Their stated goal is to re-assess once every five years. They have struggled until recently, to meet this self-imposed cycle. The Fire District was last rated in 2000, and the City of Sausalito in 2003.
The Fire District was last rated in 2000 and received a PPC rating of 3, and the City of Sausalito was last rated in 2003 and received a PPC rating of Class 5. The rating scale from best to worse is One (1) – Ten (10).
In July 2015 The Fire District was notified by the Insurance Services Office (ISO) that the District was due for an ISO review and update to its current public protection class (PPC) rating. The analysis began in September of 2015. The Fire District recently received the findings and new PPC from the ISO. Our 2016 survey resulted in an improved PPC of 1/1X. Both the City of Sausalito and the Fire District now enjoy a PPC Classification of 1.
How are PPC’s determined?
The Insurance Services Office evaluates four broad categories of fire suppression when establishing a PPC. These categories include: 1) Fire Department; 2)Emergency Communications; 3) Water Supply; and 4)Community Risk Reduction.