Agenda - Council - 08/13/2013 - Laserfiche WebLink

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Ramsey, Nowthen, St. Francis, Oak Grove, and Bethel, Minnesota Feasibility Study for Shared or Cooperative Fire and Emergency Services different PPC' ratings will vary among insurance companies. This example chart was obtained from a report published by the League of Minnesota Cities entitled "The ISO Fire Protection Rating System". Figure 52: Representative Insurance Premiums by Fire Protection Class PPC $150.000 $1,000,000 Classification Residence Commercial Space 1 2 3 4 5 6 7 8 9 10 $670 $670 $670 $670 $670 $670 $670 $777 $972 $1,072 $2,950 $2,980 $3,020 $3,040 $3,060 $3,120 $3,230 $3,330 $3,440 $3,710 According to the report, there are some points to note regarding the chart • "In this schedule, no additional credit is given on residential property for a fire class better than 7. The reason has largely to do with the role that water supply plays in the ratings. Having a better water supply helps in fighting fires in larger commercial structures, and therefore is reflected in a better rating. But for most residential fires a lesser water supply is actually needed, and having more than that available really doesn't help the fire department fight that particular residential fire any better. There's some variation among insurance companies (e.g., some might allow additional credit for class 6, others might lump classes 7 and 8 together for rating purposes, etc.) but this general pattern is fairly typical for residential premium structures. • Not all insurance companies use the ISO classifications. This is especially true for residential coverage. Some companies have their own rating systems based on their own historical loss data for the area rather than on an evaluation of the fire protection in the area. Other insurance companies use their own systems for rating the fire protection for a particular property; a company might classify properties based on the individual property's distance from a fire station and water supply, for example".e While distribution credits in the PPC" may not be the most important factor in the decision to add facilities, it is acknowledged that this issue does affect the community's rating classification and should be considered. The next few paragraphs of the report examine the travel coverage based upon the PPC credentialing criteria by the Insurance Services Office. To receive maximum credit in this section, all "built -upon" portions of a community would need to be within 1.5 road miles of an engine company and 2.5 road miles of a ladder or service company. In order 5 League of Minnesota Cities. The ISO Fire Protection Rating System. www.imnc.org. 1Ernergeney Services Consulting til page 57