The Station 9 (Oak Grove) fire department has improved its ISO rating from a 6 to a 5.
The department’s public protection classification (PPC) is 5/10. Properties over five road miles from a recognized fire station would receive a class 10.
ISO’s Public Protection Classification Program (PPC) plays an important role in the underwriting process at insurance companies.
In fact, most U.S. insurers -including the largest ones- use PPC information as part of their decision-making when deciding what business to write, coverage to offer or price to charge for personal or commercial property insurance.
Each insurance company independently determines the premiums it charges its policyholders.
The way an insurer uses ISO’s information of public fire protection may depend on several things -the company’s fire-loss experience, ratemaking methodology, underwriting guidelines, and its marketing strategy.
PPC is important to communities and fire departments as well. Communities whose PPC improves may get lower insurance prices.
PPC also provides fire departments with a valuable benchmark, and is used by many departments as a valuable tool when planning, budgeting and justifying fire protection improvements.