It's the largest single cause of property loss in the United States. In the last decade, fires have caused direct losses of more than $120 billion and countless billions more in related costs.
But that's not all. Every year, fires injure more than 20,000 people. And every year, more than 3,000 Americans die in building fires.
A community committed to saving lives and property needs trained firefighters, proper equipment, and adequate supplies of water. Insurance companies consider it good public policy — and good business — to promote and encourage the efforts of individual communities to improve their fire protection services. That's why, for almost a century, U.S. property insurance companies have funded key initiatives aimed at fire prevention and fire mitigation.
In the battle against fire losses, one of the insurance industry's most important weapons is the Public Protection Classification (PPCTM) program from ISO.
The PPC program provides important, up-to-date information about municipal fire protection services in each community we survey. A community's investment in fire mitigation is a proven and reliable predictor of the risk of future fire losses. So insurance companies use PPC information to help establish fair premiums for fire insurance — generally offering lower premiums in communities within the same rating territories with better protection.
By offering economic benefits for communities that invest in their firefighting services, the PPC program provides an additional incentive for improving and maintaining public fire protection.
The program also provides help for fire departments and other public officials as they plan, budget for, and justify improvements.
The most significant benefit of the PPC program is its effect on losses. Statistical data on insurance losses bears out the relationship between excellent fire protection — as measured by the PPC program — and low fire losses.
And in a recent survey of fire chiefs, 97% of the respondents said that the PPC program is important in helping the community save lives and property.
Follow the links for more information on ISO's PPC programs.