Laserfiche WebLink
Fire Protection Ratings in <br />Minnesota <br />The chart to the right shows the current <br />distribution of ISO PPC ratings in <br />Minnesota. <br />How ISO PPC Ratings Affect <br />Insurance Premiums <br />The table to the right shows how the <br />premiums would vary for some <br />typical structures under a couple of <br />insurance companies' current rating <br />schedules. Keep in mind Chough that <br />every insurance company sets its <br />own rates. While these figures are <br />reasonably representative of how <br />much difference the fire rating can <br />make in an insurance buyer's <br />premiums, the amounts and <br />percentages of the premium credits <br />for the various fire classes will vary <br />among insurance companies. <br />Here are some points to note: <br />Fire protection ratings in Minnesota <br />10 <br />s <br />so <br />ao <br />zo <br />sao ! <br />00 <br />I <br />Q 4 <br />i ~ <br />i <br />of <br />Zao <br />o ~ ss 1sa 1as z i <br />1a s1 ~ n <br />o- <br />I L 3 4 5 6 7 $ 9 10 <br />Representative Insurance Premiums <br />Fire <br />Class $150,000 <br />residence $1,000,000 <br />office building <br />I $670 $2,950 <br />2 $670 $2,980 <br />3 $670 $3,020 <br />4 $670 $3,040 <br />5 $670 $3,060 <br />6 $670 $3,120 <br />7 $670 $3,230 <br />8 $777 $3,330 <br />9 $972 $3,440 <br />10 $1,072 $3,710 <br />In this schedule, no additional credit is given on residential property for a fire class better than <br />7. The reason has largely to do with the role that water supply plays in the ratings. Having a <br />better water supply helps in fighting fires in larger commercial structures, and therefore is <br />reflected in a better rating. But for most residential fires a lesser water supply is actually <br />needed, and having more than that available really doesn't help the fire department fight that <br />particular residential fire any better. There's some variation among insurance companies (e.g., <br />some might allow additional credit for class 6, others might lump classes 7 and 8 together for <br />rating purposes, etc.) but this general pattern is fairly typical for residential premium structures. <br />Not all insurance companies use the ISO PPC <br />classifications. This is especially true for residential <br />coverage. Some companies have their own rating <br />systems based on their own historical loss data for the <br />area rather than on an evaluation of the fire protection in <br />the area. Other insurance companies use their own <br />systems for rating the fire protection for a particular <br />property; a company might classify properties based on <br />Something to Think About <br />LMCIT also uses the ISO PPC ratings <br />as a factor in determining <br />premiums for coverage on the <br />city's own buildings. <br />