What is the benefit of PPC classifications for homeowners and businesses?
The link between effective public fire-mitigation capabilities and lower insured property loss is unquestioned. ISO’s PPC program is based on a partnership between insurers and local governments to help communities plan, budget, and justify investments that improve municipal fire protection. Virtually all U.S. insurers of home and business property use ISO’s PPC program to assess property policies. That’s because statistical data on insurance losses demonstrates the relationship between better fire protection — as measured by the PPC program — and lower fire losses. ISO statistics show that, per $1,000 of insured property, communities with the worst PPC ratings have fire losses two or more times as high as communities with the best PPC ratings. Why is good PPC data important for underwriting precision? Using proprietary data, the PPC database is built from the ground up. But without high-quality underlying data, any application based on geographic information systems (GIS) tends to be
