City fire insurance classification improves

Based on survey results from the Insurance Services Office (ISO), the City of Dripping Springs has been reclassified in its fire insurance rating, going from a Public Protection Class 03 to the improved rating Public Protection Class 02. This new classification could mean savings in insurance costs to both homeowners and business owners within the City of Dripping Springs.

ISO is the leading supplier of data and analytics for the property/casualty insurance industry. The survey and classification are part of the ISO’s Public Protection Classification Program (PPC). This program plays an important role in the underwriting process at insurance companies. Many U.S. insurers – including the largest ones – use PPC information as part of their decision making when deciding what coverages to offer or prices to charge for personal or commercial property insurance.

The classification is a direct result of the information gathered during a recent survey of the City of Dripping Springs’ improved fire suppression efforts. The survey looked at many factors including water supply, hydrant locations and flow, fire department training and response, fire station locations and equipment, and more. Through this research and loss experience analysis, ISO identified additional differentiation in fire loss experience within their PPC program and the City of Dripping Springs, which resulted in the revised classification.

North Hays County Fire/Rescue Chief Scott Collard announced the rating and the good news at last night’s Dripping Springs City Council meeting. Per Chief Collard, “Over the last few years, the City Building Department has been diligent in ensuring that fire safety is an integral part of the building and planning stages of all growth in the city. Also, our Fire/Rescue team has been diligent in our inspections of new businesses, increasing public fire education, making sure we have adequate personnel and equipment for the growth and more. All of this has helped create a safer community and now, an improved classification rating.”

Most insurers use PPC classification for underwriting and calculating premiums for residential, commercial and industrial properties. The new classifications will improve the predictive value for insurers while benefiting both commercial and residential property owners.

This new classification is only for the City of Dripping Springs and not in the outlying areas. The best way for a property owner to determine if their rates may be affected is to look at their taxes paid. If a business owner or homeowner pays taxes to the City of Dripping Springs, their rates may be affected, as rates depend on the individual insurance carrier. Along with the possible rate reduction, it’s important to note that in Texas, any reduction in insurance rates realized as a result of a community’s ISO PPC would apply to the property owner’s entire annual premium, not just the fire portion, as it does in other states.

With the growth of the City over the past few years, the new classification is even more of a reason to celebrate. Per Collard, “The improved rating highlights the great efforts of the City and the North Hays County Fire/Rescue to make sure as the City’s population increases, that we continue to meet the demands of all that growth.”

The improved classification also puts Dripping Springs in the top 4% of the cities in the United States.

Business owners and homeowners are encouraged to contact their insurance company to see if their rates will be affected by this change, keeping in mind that the new rating may take as long as 6 months to go into effect.

For more information on this, please contact the city at 512-858-4725.

-Submitted by City of Dripping Springs