Insurance Service Organization Information

Insurance Service Organization (ISO)

The City of Fenton Fire Department prides itself on its Insurance Service Organization (ISO) Public Protection Classification (PPC) rating. The entire city has a PPC rating of a 3 based on a 1-to-10 scale with 1 being the highest or best score. This is very impressive, as there are fewer than 55 communities in all of Michigan with a rating of 4 or better.

The City of Fenton also covers a portion of Tyrone Township in Livingston County under contract. The fire department recently completed an ISO review for Tyrone and achieved a new rating of a 5 for the majority of our coverage area. Some areas in Tyrone received a 3 rating based on their proximity to the Fenton water distribution system. There is also a small area in Tyrone that is a 10 based on its distance from a fire station. See the Tyrone Township PPC Map (PDF).

ISO's PPC™ Program

To help establish appropriate fire insurance premiums for residential and commercial properties, insurance companies need reliable, up-to-date information about a community's fire-protection services. ISO provides that information through the Public Protection Classification (PPC™) program.

How the PPC™ Program Works

The PPC™ program provides important, up-to-date information about municipal fire-protection services throughout the country. ISO's expert staff collects information about the quality of public fire protection in more than 44,000 fire districts across the United States. In each of those fire districts, ISO analyzes the relevant data and assigns a Public Protection Classification - a number from 1 to 10. Class 1 generally represents superior property fire protection, and Class 10 indicates that the area's fire-suppression program does not meet ISO's minimum criteria.

Virtually all U.S. insurers of homes and business property use ISO's Public Protection Classifications in calculating premiums. In general, the price of insurance in a community with a good PPC is substantially lower than in a community with a poor PPC, assuming all other factors are equal.

A community's PPC depends on:

  • Fire alarm and communication systems, including telephone systems, telephone lines, staffing, and dispatching systems
  • The fire department, including equipment, staffing, training, and geographic distribution of fire companies
  • The water-supply system, including the condition and maintenance of hydrants, and a careful evaluation of the amount of available water compared with the amount needed to suppress fires

Benefits of the PPC™ Program for Communities

The PPC™ program recognizes the efforts of communities to provide fire protection services for citizens and property owners. A community's investment in fire mitigation is a proven and reliable predictor of future fire losses. So insurance companies use PPC information to help establish fair premiums for fire insurance - generally offering lower premiums in communities with better protection. By offering economic benefits for communities that invest in their firefighting services, the program provides a real incentive for improving and maintaining public fire protection.

The program also provides help for fire departments and other public officials as they plan for, budget, and justify improvements.

But the most significant benefit of the PPC program is its effect on losses. Statistical data on insurance losses bears out the relationship between excellent fire protection - as measured by the PPC program - and low fire losses. By helping communities prepare to fight fires effectively, ISO's PPC program saves lives.

Tyrone Township, Livingston County Coverage Letter (PDF)

Download our Tyrone Township PPC Map (PDF)

For more information go to the ISO website.