PPCTM Service

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.

LOCATION® delivers accurate, up-to-date PPC codes 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.
  • Some risks are in overlapping fire protection areas, resulting in a dangerous uncertainty over which area is responsible for fire protection.
  • In many areas, the applicable PPC depends on the distance from the risk to the nearest hydrant and/or responding fire station.
  • Many states require supplemental coding information based on fire protection area for premium tax or reporting purposes.

LOCATION helps you cut through the complications
The LOCATION database gives you the applicable PPC and fire protection area name for every address in the United States. If there are several PPC codes for a particular street and ZIP code, LOCATION delivers multiple records by address range on the street. For risks within split-class fire protection areas, LOCATION provides all the applicable PPC options for that area.

And since ISO collects and digitizes information on the locations of responding fire stations and individual hydrants, you get the most accurate available indication of the PPC for each address.

A LOCATION PPC report also includes the distance to the primary responding fire station and the responding fire station name. For risks within split-class fire protection areas, LOCATION specifies the applicable water source, such as hydrant or hauled water.

You can use LOCATION to assign the correct PPC for addresses not yet registered with the U.S. Postal Service (such as new streets). And LOCATION even has sophisticated statistical methods for placing a property without a proper address — such as an address that lists only a post office box.

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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

And with the LOCATION Future Effective PPC File, 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 in convenient tab-delimited format. The service is available online or on monthly CDs.

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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