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The Delray Beach Fire-Rescue Department is proud to have obtained the Insurance Services Office (ISO), Class 2 Rating for the Public Protection Classification Program (PPC). Out of 780 fire departments rated in the State of Florida, only 21 departments have the distinction of being awarded this rating or higher.
Most insurance companies use ISO's PPC codes in establishing premiums for both commercial and residential property policies. Here's how it works. PPC and commercial fire insurance premiums
Insurers determine insurance premiums for commercial properties after analyzing construction type and materials; occupancy; protection, such as fire extinguishers and sprinklers; and exposure to adjacent structures. For individual properties, either class rating or specific rating applies. In class rating, the insurer develops rates for similar types – or classes – of buildings, such as small churches, schools, or motels.
Specific rating includes an on-site survey and analysis of conditions at the particular property to determine the premium rate. Insurers use specific rating for manufacturing buildings, sprinklered properties, buildings with specific hazards or processes, or other properties that do not meet the criteria for class rating.
Both class rating and specific rating consider the Public Protection Classification at the property. In general, insurers develop their rating systems such that the better the PPC at a given commercial property, the lower the insurance rate will be.
PPC and residential property insurance premiums
When compared to commercial properties, dwelling properties generally require less water and equipment to suppress a fire. Therefore, for residential insurance, insurers generally do not need to make the fine distinctions that the PPC program – with its 10 classes – allows. Instead, insurers group the classes into bands. For example, under ISO's homeowners program, in a particular state, an insurer might group PPC Classes 1 to 6 as the first band, Classes 7 and 8 as the second band, Class 9 as the third band, and Class 10 as the fourth band. Each band would have a different insurance rate – the better the band, the lower the rate. The bands may vary from state to state and insurer to insurer.
For further information concerning Insurance Services Office ratings and programs, visit their web site below:
Insurance Services Office, Inc. |
