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Whether we like it or not, paying for insurance is a fact of life. Homeowner and business insurance companies use many factors when determining the cost of your premiums. One major factor is the level of fire protection. Most insurance carriers use what is known as ISO to determine the quality of fire protection available and therefore establish insurance rates.

ISO stands for Insurance Service Organization. This is a group of trained, professional evaluators that assess almost every fire department in the U.S. ISO uses a consistent set of guidelines to evaluate a fire department. 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.

For an insurance company knowing the capabilities of a fire department is important. The better the fire department, the better protected a building is from fire damage and loss. The higher the level of protection, the less likely an insurance company will have to reimburse a claim for fire damage. The fewer number of claims, the lower the cost for the insurance provider. Of course fire protection can work the opposite way. A sub-par fire department will experience more fire losses. More fire losses means more insurance claims filed. In order to make costs meet, the insurance companies raise the premiums you pay.

ISO gives a ranking of 1 through 10, with 1 being the best and 10 being no protection at all. Currently the City of Fort Oglethorpe Fire Department along with Post Volunteer (Fort Oglethorpe Fire & Rescue) has an ISO rating of 3. The areas covered outside the City of Fort Oglethorpe in the 911 coverage area for Fort Oglethorpe Fire Department and Fort Oglethorpe Fire & Rescue are a 3/9 rating.

 

 

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. Factors such as property value, deductible amount, multiple policies, security systems, and credit ratings affect an individual’s rates.

A basic study of insurance costs was conducted within Fort Oglethorpe Fire & Rescue's response 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. To find out what the premium rate changes would be on your home or business, call your insurance agency.