Insurance Services Office (ISO) Classification
*Cannon Beach Fire District's ISO rating is a Class 3ISO - 2018 - Press Release.pdf
Insurance Service Office (ISO)
Insurance Service Office (ISO) is an independent organization who conducts what is referred to as Public Protection Classification (PPC) survey and onsite review. Part of the review compares community risks to what the fire district can provide in fire suppression [e.g., putting out fires]. The ISO PPC Program plays an important role in the underwriting process for insurance companies. Most US independent insurers use PPC information as part of their decision-making when deciding insurance coverage and premium rates. PPC rates on a scale from “1” to “10”, with “10” being no protection and “1” being the highest community protection possible. PPC rating occurs approximately every 10 years unless there is a significant change in the community, e.g., re-districting.
CB Fire’s PPC rating was reclassified in 2018 from “4” to “3”. The lower the classification number, the better the insurance rate, particularly for commercial businesses in the district.
PPC points are given within the following categories: a) apparatus, b) staffing, c) water supply, and d) fire prevention. Total points are used to determine classification rating. Examples of each category:
· Apparatus: A Ladder truck classification, to obtain full points, require 100 feet extension ladder. The pump capacity for city of Cannon Beach requires 3000 gallons per minute (GPM). Points are lost when apparatus exceeds 25 years.
· Staffing: Considers the number of responders and response times.
· Water Supply: Includes hydrant flushing, maintenance, water flow pressures, and water volume of apparatus, particularly in areas with limited water supply.
· Fire Prevention: Includes points for Fire Marshall availability for inspections and pre-plan / pre-incident surveys.
Why Care about ISO?
While homeowners see relatively small differences in their property insurance bills, commercial owners realize the difference in significant ways. The lower the score, the better their insurance rate.
The challenging goal is to maintain the 3 rating by addressing areas where we can advance progress such as increasing pumping capacity, maintaining hydrants for city, upgrading apparatus, and enabling fire marshal capabilities.