Top Items to Focus On
Underwriters put a lot of focus on public protection to generate the pricing for the policies and this is driven by:
Distance to fire department and type of fire department
Distance to or lack of, fire hydrants
Photos
Take a photo of the hydrant. Be on the look out for the as you approach the property.
Inspection Prep
Check for hydrants and fire department info online prior to inspection. It is easy to look for hydrants on Google Street View.
Public protection is a very important factor in evaluating the loss potential of a property. Many items must be investigated. For the most part, these are all FACTUAL elements of the report and missing their presence or getting it wrong is not acceptable. It is not a good day for the Gardner Group when an agent calls up to say that there is a fire hydrant right in front of the house, when our report clearly states that no hydrant is present.
Why is distance to a fire hydrant so important? Many don't realize that the proximity from the nearest fire hydrant and fire department has large effects on your homeowners insurance. Generally, the closer a building is to a fire station or fire hydrant, the lower the ISO rating. Distance to the nearest Fire Station and more importantly Fire Hydrant is an item that must not be over looked.
ISO Ratings and Insurance
Who is ISO and why should I care? The Insurance Services Office (ISO) is an independent company that rates every community in the United States for fire & emergency readiness. The ISO rating is then used to determine the insurance rates for the community that the fire department is responsible for. The communities are rated on items like manpower, equipment and training, water supply and communications. The fire department is the holder of this rating and by lowering their ISO ratings every fire department can in turn lower the cost of property insurance for their community.
How Do ISO Ratings Effect Insurance Premiums?
ISO ratings are one of the many factors that affect insurance premiums. Age of the structure, construction material, and loss history in a particular area also affect the base rate. As you have seen in other sections, factors such as property value, deductible amount, multiple policies, security systems, and credit ratings affect an individual's rates.
ISO bases a fire department's rating on many factors including the number of personnel on duty, training level of personnel (paid or volunteer), the amount of water the fire department can get to a fire, and the amount and quality of equipment used (such as fire engines and hand tools). The purpose of ISO is to give insurance companies a uniform system on which to base their insurance premiums.
What is the real cost in dollars then in change from a lower to a higher ISO rating?
A basic study of insurance costs was conducted within Fort Oglethorpe, Georgia's fire district and the following premium changes were found on the value of homes denoted if the ISO Class rating changed from a Class 3 to a Class 5.
In another example, consider a $100,000 brick veneer house in three different communities The first house is in a city with a PPC rating of 4. The second is in a town with a rating of 7. The third is in an “unprotected” area rated 10.
An insurance company’s premium in the city graded 7 is 15 percent higher than the one in the town with a PPC rating of 4. The owner of the house in the “unprotected” area rated 10 pays about 25 percent more than the one in a city rated 4.
As you can see, the premium that the carrier will receive is tightly tied in to the ISO rating. Many of our customers do not use the ISO rating but will determine their own rate based on distance to hydrant, distance to the fire station and so on. That is why the distance to the fire hydrant is a Hot Button Hazard.
What about homes in remote locations?
Any building more than five road miles from a fire station or outside the boundary of a fire protection area, such as a city or volunteer fire department service area is rated 10. An exception is an area that has an “automatic aid agreement” with a recognized and rated fire department to respond to fires in that area. In such cases, ISO assigns the area a rating after evaluating the agreement. Use of the assigned rating will depend on the distance of individual buildings from fire stations.
This is the reason why you see the carrier putting so much emphasis (and we do in review) on the distance to the fire department and the name of the department.
How is the ISO rating determined?
Here are just a few of the more common items covered in an ISO audit:
You are graded on how well you receive and handle fire alarms. How many PSAP (Public Safety Answering Point) operators do you have, compared to how many you need. The arrangement of the dispatch facility. How call notification are handled? What are the NFPA (National fire Protection Association) requirements?
What is your needed fire flow? Who are you providing the service too?
What are your response distances?
How many pumpers you have compared to how many you need. How are they equipped compared to NFPA/ ISO's equipment list? Do you have any reserve pumpers? Do you need them? How are they equipped?
What's the pump capacity of in-service and reserve pumpers as compared to your basic fire demand?
Do you need an aerial truck? How is it equipped? Do you need a reserve aerial? How should it be equipped?
Do you need service trucks? How should they be equipped?
How much of your city/ county needs to be covered by pumpers and aerials?
What is the number of personnel available for response for first alarm fires? How many do you need?
How much training do you need in various areas? What facilities do you have for training and how much do you use the facilities?
How much water is available in different locations of the city or county as compared to the needed fire flow for that area? What are the type and capacity of hydrants? How often are they inspected?
NOTE: The Gardner Group does not belong to ISO and does not provide ISO ratings on any of our inspections. If an ISO rating is required, the insurance carrier will obtain on their own. However, if we provide the type of information such as distance to fire department and presence of hydrants, the insurance carrier can make their own determination of adequacy of fire protection. As we stated before, the absolute correctness of factual data related to the fire protection of each property is paramount. We cannot provide incorrect report on protection data.
Property protection classification is based on a combination of factors, including the distance to the nearest fire department and fire hydrant. The classification system, which is commonly known as the Insurance Services Office (ISO) Public Protection Classification (PPC) system, ranges from Class 1 to Class 10, with Class 1 offering the highest level of property protection and Class 10 offering the lowest.
The ISO PPC system considers several factors, including the proximity and availability of fire stations and equipment, the training and staffing of firefighters, and the availability and capacity of water supply systems. The distance to the nearest fire department and fire hydrant is also an important factor in the classification process.
Buildings located within a certain distance of a fire department and fire hydrant may receive a lower property protection classification, as they are considered to be at a lower risk of damage from fires. The exact distance that qualifies for a lower classification can vary depending on the area, but generally, properties located within 5 miles of a fire department and within 1000 feet of a fire hydrant can receive a lower classification than those located further away.
Fire departments can use a variety of water sources to fight fires, depending on the availability and location of the water source. Here are some common types of water sources that fire departments can use:
Municipal water supply: This is the most common source of water for fire departments. It comes from the public water system, such as a city or town's water supply.
Private water supply: This includes wells, ponds, lakes, and rivers that are owned by private individuals or companies. Fire departments may use these water sources if they are available and accessible.
Static water sources: These are man-made water sources, such as fire ponds or cisterns, that are designed specifically for firefighting purposes. They are often located in rural areas where municipal water supplies are not available.
Portable water tanks: These are tanks that can be transported to the fire scene and filled with water from nearby water sources. They are typically used in areas where there is no access to a municipal or private water supply.
Aerial water sources: Fire departments can also use helicopters or airplanes to drop water from above. This method is typically used for wildfires or other large-scale fires that are difficult to access by ground.
It's important to note that not all water sources are suitable for firefighting. Fire departments must consider factors such as water quality, availability, and accessibility when choosing a water source.
As you would think, you do not need a dry hydrant in place to get water from a pond, lake, stream or even a swimming pool. In remote areas, that is why we identify alternate water sources. However, most insurance companies will not rate that water source in regards to the insurance premium.
Obstructed Access for Fire Equipment
The question of "barriers to access" is related to how easily (or not), fire equipment can access the property to respond to the emergency. Some of the possible obstructions are:
Gated Access
While most gates will not stop the fire department, it is best to note their presence.
If there is a remote controlled gate, often times, there will be a fire department access key required to be installed.
These are sometimes referred to as KnoxBoxes.
Long Driveway/Restricted Access
Long, narrow, single track driveways are a limiting factor to large, heavy fire trucks. If you suspect access will be limited, note it in your report.
Seasonal Access
Snow or mud bogged roads are a seasonal issue in our area. If the road or driveway is not maintained year round, note it in your report.
Train Tracks
If a train track crosses any access point to a property, even if it is not the only road to the property, we should note the presence of the train track. If a train is on the track (moving or stopped) it will delay the approach of the fire fighting equipment by idling them or forcing them to loop around the tracks.
Identifying the location of fire hydrants is important for insurance coverage because it can impact the insurance premiums and coverage options for a property. Properties that are located closer to fire hydrants are considered to be at lower risk of significant damage in the event of a fire, and therefore may be eligible for lower insurance premiums and broader coverage options. On the other hand, properties that are located further away from fire hydrants may be considered to be at higher risk and may have higher premiums or limited coverage options.
Lack of Property Identification
Recommendation:Fire department response is currently obstructed by lack of property identification. 911 numbers should be installed and visible from the road to improve public protection