According to Chief Rich Lindsey, McCord’s Crossroads Volunteer Fire Department recently received an improved Public Protection Classification (PPC) from the Insurance Services Office (ISO). The new rating, which will become effective on October 1, 2015, is a 4/4Y which is significantly better than the previous 7/7X. This rating should save homeowners who live within five road miles of one of McCord’s Fire Department’s stations a significant amount of money on their homeowners insurance each year.
ISO is one of the country’s leading sources of information about property and casualty insurance risk. Through the PPC program, ISO evaluates fire protection efforts in communities throughout the United States based on three areas: receiving and handling alarms, fire department personnel and equipment, and water supply. ISO analyzes the relevant data and then assigns a PPC in the form of a grading from 1 to 10, with Class 1 representing superior fire protection. A community’s investment in fire mitigation is a proven and reliable predictor of future fire losses. Therefore, many insurance companies use this information to help establish fair premiums for fire insurance.
Since the communities served by the fire department are not totally protected by fire hydrants, the department received a split classification. The 4 is for structures within 1,000 feet of a fire hydrant. The 4Y is for structures that do not have a hydrant within 1,000 feet. In 2013, ISO revised the way they issue split classifications. The 9 and 8B classifications for structures more than 1,000 feet from a hydrant were replaced with the X and Y classifications, respectively. Therefore, the department’s new rating is equivalent to a 4/8B on the traditional scale and should result in lower insurance premiums for all residents who reside within 5 miles of one of the two stations operated by McCord’s Fire Department.
Chief Lindsey stated that the exact amount or percent that an individual will save is hard to predict because insurance companies consider many factors when calculating insurance premiums. Some of those factors include age of the structure, construction material, and loss history in a particular area. However, as an example, Chief Lindsey polled several local insurance companies who utilize ISO’s data in determining their rates to find out what homeowners might expect to save. The result was that a homeowner who has a hydrant located within 1,000 feet of their home will, on average, see a 13 – 20% savings, and a homeowner that does not have a hydrant located within 1,000 feet will, on average, see a 5 – 15% savings. A homeowner can contact their insurance provider in order to find out what savings they might realize. Chief Lindsey encourages the installation of fire hydrants as a matter of life safety and lower insurance premiums. You can contact your local water provider regarding cost and feasibility of installing a fire hydrant near your residence.
Chief Lindsey said, “This rating is a tribute to the hard work and dedication of the volunteers at McCord’s Fire Department.” He went on to say that the rating could not have been accomplished without the hard work and dedication of the Cherokee County Emergency Communications District, the Northeast Alabama Water District, Cave Spring Water, and the support of the community and local government. Less than 20% of all Alabama Fire Departments and only 21% of U.S. fire departments have achieved a PPC 4 or better.
Chief Lindsey encourages the community to continue to support the fire department by donating a small portion of their savings back to the department for the continued improvement of the fire and rescue services provided by the department.