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I ~1(~~ ~-m ,~1 ~ t~l ~ 2 <br />I EAG U E of <br />MINNESOTA. <br />CITIES <br />CONNECTING & INNOVATING <br />SINCE, 1913 <br />RISK MANAGEMENT INFORMATION <br />THE ISO FIRE PROTECTION RATING SYSTEM <br />Many insurance companies use ISO's PPC evaluations as a <br />factor in setting the premiums they charge for property <br />insurance; the better the community's PPC grade, the lower <br />the premiums the insurance company would charge for <br />property insurance in that community. ISO's data on fire <br />losses indicates that communities with better fire protection <br />as evaluated by the PPC do in fact tend to have lower losses <br />from fire damage than other communities. <br />This memo gives an overview of the factors that affect a <br />community's PPC rating, how these ratings affect insurance <br />premiums, how the city can have its rating reviewed, and <br />where the city can get more information on the ISO PPC <br />process. <br />Factors for PPC Ratings <br />Hi hli ht <br />The Insurance Services Office, Inc. <br />(ISO) has for many years done <br />evaluations and ratings of the fire <br />protection provided in <br />communities. This system is <br />called the ISO Public Protection <br />Classification program, or PPC. <br />The PPC process grades a <br />community's fire protection on a <br />scale of 1-10, based on ISO's Fire <br />Suppression Rating Schedule. <br />1S0's PPC system has been in use since the early 1900's, and has been continuously modified and <br />refined over that time. The Fire Suppression Rating Schedule (FSRS) looks at a great deal of <br />specific information about the fire department, the water supply, and the types of property in the <br />community, and uses a fairly complex process to evaluate that information. In general though, <br />here are the factors the PPC system looks at. <br />Water Supply <br />Water supply is the most important single factor, <br />and accounts for 40% of the total rating. The <br />FSRS compares the water supply available at <br />representative areas of the community with the <br />amount needed to fight a fire in the types of <br />buildings there are at that location. [n addition, <br />there are some specific minimum requirements <br />for specific classes; to be Class 8 or higher, for <br />example, the city must have the water supply and <br />equipment to deliver at least 250 gallons per <br />minute for at least two hours. <br />ISO Fire Rating Factors <br />Alarm and <br />dispatch <br />10% Water <br /> supply <br />Training 40% <br />9% <br /> Personnel <br /> 15% <br /> Equipment <br /> 26% <br />~i nis ma[enal is promtletl as general Information and is not a substitute for legal advice. <br />Consult your attorney for advice concerning specific situations. <br />LEApGUE OF MINNESLCA CITIES 145 UNNERSITY AVE. WEST PHONE: (651)2$1-t 2OO rA7( 1651)2$1-1295 <br />INSURANCE TRUST SL PAUL MN SSI03~2044 I'On. FREE: ($O~)92J-1t22 WE14:WWW.LMC.ORG <br />