New fire district ratings could lower home insurance rates

Feb. 02--Homeowners in multiple fire districts across Davidson County could soon see decreases in their home insurance rates after several fire departments achieved improvements in the latest state-required inspection cycle.

According to a joint press release issued by the departments, four area departments completed the inspection using a method three grade, while four others improved within the method one grade and one department retained their current rating in the method one grade.

The inspections were completed in early August of 2016 and were conducted by officials with Department of Insurance Office of the State Fire Marshal. The inspections are required on a regular basis as part of the N.C. Response Rating System and went into effect Jan. 1.

Factors considered during the inspection include proper staffing levels, sufficient equipment, proper maintenance of equipment, communication capabilities and availability of a water source.

Method one grades consist of using pressurized fire hydrants only for supplying water to a fire scene. Method three grades consist of a department using pressurized fire hydrants and a tanker relay from pressure hydrants and/or suction points like a body of water to provide water.

Inspection ratings, according to the N.C. Response Rating System, range from 1 to 10, with 1 representing the most comprehensive fire response and access to water.

While ratings closer to 1 can often contribute to lower home insurance rates than those approaching 10, the savings are not necessarily linear. Jeff Silver, an agency manager for Farm Bureau Insurance in Davidson County, said the most significant disparities are found between the 6 to 9 rating range. Silver said homes in areas with a rating above a 6 will generally see a significant increase in their rates.

In the method three ratings, the Churchland, Linwood and Fair Grove fire departments improved from a 6/9E method one rating to a 5/9E method three rating. The Tyro Fire Department improved from a 5/9E method one rating to a 5/9E method three rating.

In the method one ratings, the Holly Grove and Gumtree fire departments improved from a 5/9E method one rating to a 4/9E method one rating. The Silver Valley and South Davidson fire departments improved from a 6/9E method one rating to a 5/9E method one rating.

The Denton Fire Department retained a rating of 5 within the town of Denton and retained a 5/9E method one rating in the Emmons Fire District.

The first digit in the ratings of method three inspections applies to most properties within five road miles of their designated fire station, regardless of their distance from a water supply.

The first digit in the ratings of method one inspections applies to properties within five miles of their designated fire station and within 1,000 feet of a pressurized fire hydrant.

The 9E rating for both inspection methods applies to any property beyond five road miles but less than six miles from their designated fire station.

Fair Grove Fire Chief Jason Myers said many of the departments decided to pursue a method three rating to create a straight rating in those districts regardless of a home's distance from a hydrant. With the addition of Fair Grove's station 44 last year, Myers said almost 100 percent of the district will be within five miles of a station and thus fall into the 5 rating.

"The ones that will see the biggest drop are the ones that were over the 1,000 feet from the hydrant," Myers said. "We feel like we are doing a benefit for the citizens. ... To us, it allows our citizens to know that we are trying to work for them and benefit them."

Tommy Millar, an insurance agent with State Farm based out of Thomasville, said it would be difficult to estimate the savings a homeowner could expect because of the many factors that determine the rates. Insurance agencies, he said, are provided the rates from the state inspections office and then translate those figures into their insurance rates. Millar said rate changes would take place during a homeowner's policy renewal.

Myers said the decision to pursue a method three rating, though, was not without risk.

"Our concern of going with it is once you choose to go with method three ... you're going to get a straight rating whether it's a seven or wherever it falls," he said. "We were going to be excited to go a straight 6. Five was just the icing on the cake."

The process of hauling water from a remote hydrant or body of water to aid in the supply on the scene of a fire is one that requires detailed collaboration and timing on the part of both the tanker bringing in new water and firefighters on the scene who ensure the water is transferred securely.

Members of the Fair Grove Fire Department joined other surrounding departments in more than a year's worth of training for the inspection. The departments also had access to training videos through the office of the state fire marshal, and Myers said state inspectors visited multiple times to assist with the training.

"Had we failed at something, those homeowners that were paying a 6 could actually have had to pay more," Myer said. "It was a gamble to do this, but we practiced enough. That's one reason we practiced as hard as we did, because we said, 'We're not going to fail at this. If we're choosing to do it, we're going to at least maintain what we were and get everybody to a 6.'"

Additional fire departments in Davidson County have routine inspections scheduled for this spring, according to the joint press release. Officials from the newly inspected districts urged homeowners to contact their insurance providers for more information on how their rates may change.

Mat Batts can be reached at (336) 249-3981, ext. 227, or at mat.batts@the-dispatch.com. Follow Mat on Twitter: @LexDispatchMB

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