Whether we like it or not, paying for insurance is a fact of life. Homeowner and business insurance companies use many factors when determining the cost of your premiums. One major factor is the level of fire protection. Most insurance carriers use what is known as ISO to determine the quality of fire protection available and therefore establish insurance rates.
ISO stands for Insurance Service Organization. This is a group of trained, professional evaluators that assess almost every fire department in the U.S. ISO uses a consistent set of guidelines to evaluate a fire department. The purpose of ISO is to give insurance companies a uniform system on which to base their insurance premiums.
For an insurance company knowing the capabilities of a fire department is important. The better the fire department, the better protected a building is from fire damage and loss. Of course fire protection can work the opposite way. In order to make costs meet, the insurance companies raise the premiums you pay.
ISO gives a ranking of 1 through 10, with 1 being the best and 10 being no protection at all. Currently the Sioux Rapids Fire Department has an ISO rating of 6. The areas covered outside the City of Sioux Rapids in the 911 coverage area for the Sioux Rapids Fire Department are a 6Y rating. This is an improvement from the last time the rating was completed. The fire department will continue to try and improve the rating in the future as well.
ISO ratings are one of the many factors that affect insurance premiums. Age of the structure, construction material, and loss history in a particular area also affect the base rate. Factors such as property value, deductible amount, multiple policies, security systems, and credit ratings affect an individual’s rates.
To find out what the premium rate changes would be on your home or business, call your insurance agency. If your agency uses this rating you may receive a discount! It may be worth the phone call!