New ISO ratings could mean lower property insurance [Royse City Herald-Banner, Texas]

Aug. 24--Royse City residents could start seeing lower property insurance premiums soon.

The lower premiums are expected because the city's Public Protection Classification -- also known as the ISO rating -- will drop from "5" to "3."

Fire Chief Richard Bell and other city officials were notified in a letter early this month that an evaluation by Insurance Services Office Inc. found that a "3" rating is appropriate.

The next step in the process involves ISO recommending to the Texas Department of Insurance and State Fire Marshal's Office that the "3" rating is appropriate. The State Fire Marshal then will provide notification regarding the effective date.

"Our goal is to accurately reflect your community's fire suppression and control resources through the public protection classification (PPC) system," the ISO notification letter stated. "As you may know, the PPC number developed by ISO is one of several elements considered in the calculation of individual property insurance premiums by numerous insurance companies."

The PPC review covered three areas -- receiving and handling fire alarms (telephone service, operators and dispatch circuits); fire department (including equipment, personnel and training); and water supply (supply system, hydrants, and inspection and condition).

Royse City scored 77.95 out of a possible 100. The local department was just a few points shy of 80 needed for a "2" classification.

Last October, the city council authorized a $7,900 expenditure for the ISO study. Then, last January, the city council approved a $9,800 expense for a consultant to return to Royse City to do the study with the ISO.

The city and community development corporation shared the $9,800 expense.

City Manager Carl Alsabrook reported in January that Royse City's lower rating could mean an estimated insurance savings of 13 percent for business owners.

The school district, he said, already had confirmed that it could save about $15,000 annually. The city had not determined its possible savings.

"And probably the better news for our homeowners is, we've been told, at least a 7 percent reduction," the city manager said.

In dollars, Alsabrook said, the savings could be $125 to $150 annually.

___

(c)2013 the Royse City Herald-Banner (Royse City, Texas)

Visit the Royse City Herald-Banner (Royse City, Texas) at www.roysecityheraldbanner.com

Distributed by MCT Information Services