Assigning the wrong Public Protection Classification (PPCTM) code to a specific risk can cost you money. Depending on the state and type of risk, the premium for a risk in the worst classification can be more than double that of a risk in the best classification, if everything else is equal. Studies show that you can increase your total property premium by 2% to 7% just by using the correct PPC code every time.
Why is knowing the distance from an insured structure to the nearest fire station insufficient to assess fire risk?
The nearest fire station isn't always the responding fire station. For example, the first responding fire company may come from outside the risk's own fire district because of an automatic-aid agreement between districts. Also, the nearest fire station may not meet minimum national standards for initiating a response to a structure fire or may not operate 24x7x365. LOCATION® is the only system with information on responding fire stations, automatic-aid agreements, and individual hydrants and other sources of water — so you get all the information you need to underwrite and rate policies accurately and quickly.
LOCATION® delivers accurate, up-to-date protection class information representing every address in the United States. And ISO has filed that information with insurance departments in all ISO jurisdictions, so you know you're always using the approved PPC.
A common underwriting problem
The highly localized nature of fire departments makes gathering accurate information about them difficult. Consider that:
- Fire protection areas often don't follow community and postal boundaries.
- Many cities maintain multiple fire protection areas with varying PPC codes.
- States may have separate rules for dwellings and commercial buildings.
- In many districts, the applicable PPC depends on the distance from the risk to the nearest recognized hydrant and/or responding fire station.
- Many states require supplemental coding information based on fire protection areas for premium tax or reporting purposes.
LOCATION is the only system with information on individual hydrants and sources of water, responding fire stations, and automatic-aid agreements. ISO has a staff of 550 property field representatives strategically located around the county. That includes more than 150 community mitigation professionals dedicated to collecting, verifying, and maintaining information about fire protection throughout the United States. The representatives compile and electronically map the exact positions of fire stations, sources of water, and fire protection area boundaries. In the battle against property loss, insurers can be confident that ISO is the leading source of information on public fire protection capabilities.
LOCATION helps you cut through the complications
The LOCATION database gives you the applicable PPC and fire protection area name, name and drive distance of the nearest responding fire station, tax/subscription indicator, and water supply information (where available) for every address in the United States. And since ISO field representatives validate, collect, and digitize all information, you get the most accurate available indication of the PPC for each address.
|Thinking about using ZIP codes to assign PPC?|
In this map, properties in ZIP code 41034 and 41056 could have a PPC of 4,7,9, or 10, depending on the address. A property in ZIP code 41055 could have a PPC code of 7, 9, or 10. Conclusion: You need to assign PPC codes address by address. For the correct PPC every time, you need LOCATION.
With LOCATION you'll:
- increase accuracy in underwriting and rating
- avoid lost business because of inaccurately high quotes
- avoid market-conduct fines
- improve productivity
- price your risk correctly
And with the LOCATION Future Effective PPC Service, you can find out in advance if a community's PPC is about to change.
LOCATION PPC Service comes to you as a flat-file database for you to host. The service is also available online or through a web service connection.
Want to know more?
To find out how you can get LOCATION — or to request more information — contact ISO. You can also call us at 1-800-888-4476.
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