ISO Public Protection Classification
April 9, 2024
ISO's PPC program measures the effectiveness of1em "°, ssa public fire protection for structures in 38,000 fire
districts across the country
PPC considers the overall fire suppression service
capability relative to the risk in the graded area
Better fire protection - as measured by the PPC -
generally leads to a better loss experience for
insured structural damage
Reviews are conducted every five years
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10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
a
Countrywide
7,057
3,856
8,841
5,953
4,906
2,035 2,29Q
1,328 931
503
Ii.
Class Class Class Class Class Class Class Class Class Class Class 1 2 3 4 5 6 7 8 8B 9 10
503 Class 1
= Less than l% of all rated Communities
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40 Fire Suppression Rating Schedule
A community fire suppression evaluation,
not just a fire department evaluation
Acknowledged and accepted measurement
of a community's fire suppression capabilities
References proven national standards
A.American Water Works Association VAPCO Ono National Fire Protection Association The Authoritative Resource an Safe WaterInternational NFPA The authority on fire, electrical, and building safety Leaders in Public Safely[ommunietions'
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CArS1rr3URiCAU913 lntreSkUdUf E
[ 4 evaluates Me capability of the emergenoy
COrriMUNCatiOrls systMS tO 11811d1a 8119CIN8
recelpt and dispatch of alarms to fire depariments.
F1re Mi11uatlon neograpnics
ISO assesses a property's d islance to
UT I6gal firsl-rL'Spa1idinq fire Station and
to a recognizes haydranC -or other effective
i water source.
F, FEre Uapartment
DeterminingI
� ISM} assesses a fire departrnent's andityf to
I:aunrh �n offoCliue initial altack on first -LIgrm.
We eva[uate station distribution, Equipment.
pumping capad ty, persannei, and training.
PPC
Water Supply
*0 rewiem the distribution, mairktenarLu, and
con(Mn of hydrants, pumps, s#oiage. and
ililtratlon. We assess the available water supply
against the MOLL Ili needecl to s uppress fires.
Community RiA Redue#Ion
ISO evaluates a community's risk reduction
stales by examining three cNslinc;t areas; fire
prevention, public fire safely educaloon, and
fire inaestiga,tron -capabilities.
How Does PPC Information Affect
Individual Insurance Policies?
ISO'ISO's Public Protection Classification (PPCO) information plays an important part in the decisions insurers make affecting the underwriting and pricing of property insurance. In fact, most U.S. insurance companies — including the largest ones — use PPC information in one or more of the following ways:
• to identify opportunities for writing new business
• to manage the quality of community fire protection across their book of business • to review loss experience in various rating territories • to offer coverages and establish deductibles for individual homes and businesses Insurance companies — not ISO — establish the premiums they charge to policyholders. The methodology a company uses to calculate premiums for property insurance may depend on the company's fire loss experience, underwriting guidelines, and marketing strategy.
Here are some general guidelines to help you understand the benefits of improved PPC ratings for residents and businesses;
PPC may affect the underwriting and pricing for a variety of personal and commercial insurance coverages, including homeowners, mobile home, fine arts floaters, and commercial property (including business interruption). • Assuming all other factors are equal, the price of property insurance in a community with a good PPC is lower than in a community with a poor PPC,
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