CITY of SAGINAW ISO PUBLIC PROTECTION CLASSIFICATION IS ELEVATED TO A “2” RATING
This year the City of Saginaw underwent an evaluation by the Insurance Service Office or ISO. The ISO collects information about the quality of a municipalities fire protection services and assigns a Public Protection Classification or PPC. The PPC is a standardized countrywide classification system used to reflect a community’s local fire protection for property insurance rating purposes. Assigned PPC’s range from 1 to 10. Class 1 generally represents superior property fire protection and Class 10 indicates the area’s fire-suppression program doesn’t meet ISO’s minimum criteria. ISO evaluates four major areas when establishing a PPC. The communities fire department, the water supply, the emergency communications system and their risk reduction efforts.
A community’s investment in fire mitigation is a proven and reliable predicator of future fire losses. Generally communities with a lower PPC result in the ability to secure lower homeowners and commercial property insurance premiums. There are several factors insurance companies use to establish premiums for a particular community but most U.S. insurers use ISO’s PPC in some fashion when calculating premiums.
Prior to this year’s ISO survey Saginaw was a PPC of 4. “Reducing our classification from a 4 to a 2 rating is a benefit to our City that hopefully translates to insurance premium savings for our homeowners and business community” states Fire Chief Spears. “We strongly believe we have an excellent fire department and provide services and protection to our citizens that are at the highest levels”. “A PPC of 2 simply reinforces this belief”.
Although the largest percentage of PPC points is directly related to the fire department and their operations, the water supply system plays a significant role in the evaluation. “Current and previous City leaders and water department staff are to be commended for the water supply and distribution system that our City has”. “We are fortunate the water infrastructure was prioritized and planned for many years ago and remains as a high priority today” Chief Spears.
Nationwide 47,500 communities have been evaluated by ISO and assigned a PPC rating. Point 1% (.1%) have a PPC rating of 1. Point 7% (.7%) have a PPC rating of 2. 2600 communities in the State of Texas have been evaluated by ISO and assigned a PPC. Only 21 currently have a PPC rating of 1. Saginaw’s 2 rating places them in the company of 187 other municipalities. Among them:
North Richland Hills
Saginaw’s new lower ISO PPC rating of 2 is effective on December 1, 2014. Home and business owners within Saginaw are urged to contact their property insurance agent or representative to request a review of their policy to determine is a reduction in premium is applicable.