ISO Class Update

ISO is an independent company that serves insurance companies, communities, fire departments, insurance regulators, and others by providing information about risk. ISO's expert staff collects information about municipal fire suppression efforts in communities throughout the United States.

In each of those communities, ISO analyzes the relevant data and assigns a Public Protection Classification (PPC) grade – a number from 1 to 10. Class 1 represents an exemplary fire suppression program, and Class 10 indicates that the area's fire suppression program does not meet ISO's minimum criteria.

We are excited to announce that after ISO completed their analysis of the structural fire suppression delivery system provided to the Town of Hudson, effective November 1, 2022 our ISO PPC will improve from a Class 4 to Class 3.

Out of the 255 communities in NH, Hudson was 1 of 19 communities classified a Class 3. For perspective, there are only 5 communities with a Class 2 and no communities with a Class 1. Our end goal is to obtain Class 1 status and we will continue to work towards that goal.

How do ISO Fire Ratings Impact Homeowners Insurance Rates?

Insurance Services Office provides the ISO score to fire departments and insurance companies. Our score reflects how well prepared the community and area is for fires. Most insurance companies subscribe to the ISO but there are some that do not. Most insurance companies use their own pricing algorithm so there is no true way to compare apples to apples when it comes to quoting insurance premiums. This directly relates to how companies underwrite their risk. A local homeowner does not have a unique impact by the ISO rating, it is a town-wide impact as long as the insurance companies review ISO ratings during the underwriting and quoting process.

The best way for a homeowner to ensure that the insurance company is using the most up to date ISO rating is to ask during the underwriting process. In order for the insurance company to access the new ISO information, there has to be a relationship between the insurance company and the ISO. As discussed, each insurance company processes their research differently and each make the decision to use the ISO information or not. Ensuring that you choose an insurance company that utilizes this information will provide the best chance to realize the savings associated with the improvement in our ISO rating.  

To learn more about this topic as well as other facts and figures about PPC codes around the country, please view the weblink below.