Information on ISO/PPC Ratings

FIRE is the largest single cause of property loss in the United States. In the last 10 years, fires have caused losses of more than $120 billion. Every year, fires injure more than 20,000 people and more than 3,000 people die in building fires.

The International Standards Organization (ISO) is an independent organization that serves insurance companies, fire departments, insurance regulators, and others by providing information about risk. ISO's staff collects information about municipal fire-protection efforts in communities throughout the United States. ISO analyzes the relevant data and assigns a Public Protection Classification (PPC), that is, a number from 1 to 10. Class 1 represents exemplary fire protection, and Class 10 indicates that the area's fire protection program does not meet ISO's minimum criteria.

Virtually all U.S. insurers of homes and business property use ISO's PPC in calculating premiums. In general, the price of fire insurance in a community with a good PPC is substantially lower than in a community with a poor PPC.

A Community's PPC depends on:

   *fire alarm and communications systems, including telephone systems, telephone lines, staffing, and dispatching systems

   *the fire department, including equipment, staffing, training, and geographic distribution of fire companies
  
   *the water supply system, including condition and maintenance of hydrants, and a careful evaluation of the amount of available water compared with the amount needed to suppress fires

ISO's PPC program incorporates nationally recognized standards developed by the National Fire Protection Association (NFPA) and the American Water Works Association. The program also provides help for fire departments and other public officials as they plan for, budget, and justify improvements.

A community committed to saving lives and property needs trained firefighters, proper equipment, and adequate supplies of water. Insurance companies consider it good public policy and good business to promote and encourage the efforts of individual communities to improve their fire-protection services.

Reference: ISO’s PPC Program Website.
To request information the ISO toll free number is 1-800-888-4476

This information was researched and provided by Mike Petullo