Published: April 28, 2008 10:59 pm         

Fire departments have impact on insurance rates

Editor’s note: This is the last of a five-story package that looks at the state of volunteer firefighting in southern West Virginia.



A critical component in writing a homeowners insurance policy lies in the neighborhood’s Insurance Services Office rating.

And it all depends on how close the dwelling is to a fire department, and whether a hydrant is in close proximity to keep the big engines supplied with water in case a fire breaks out.

ISO ratings are figured on a scale of 1 to 10, and just where one’s community lies figures into a policy’s costs.

“It’s a big difference,” says Rick Allen, a Nationwide agent in Beaver. “If you’re over five miles from a fire station, or 1,000 feet from a fire hydrant, both of those have an impact on your premium.”

The Beaver Volunteer Department is in Class 5, but it’s also a split category, going down to 9 since outlying areas in its coverage region are without fire hydrants.

Raleigh County Commission president Pat Reed said the split rating is common and folks within five miles of a department have a higher rating than those beyond that radius.

The Bradley-Prosperity VFD has a 4-and-9, Coal City is rated 6-and-9, Clear Creek is 9-and-10, Coal City, 6-and-9, Coal River, 7-and-10, Ghent, 6-and-9, Lester, 6-and-9, Mabscott, 6-9, Rhodell, 6-and-9, Sophia, 6-and-9, Sophia Area, 7-and-9, Trap Hill, 7-and-9, and Whitesville, 6-and-9.

Hypothetically, if two houses — identical down to the very last detail — are located in different classes, one in a 10, the other in a 5, the difference in the annual premium is about $400, Allen says.

And it makes no difference if the structure is a private dwelling or a business location, the agent said.

“It has the same effect,” he said. “In fact, some companies, if you’re over five miles from a fire station, won’t even write you.”

Jim Mahurin, a private industry consultant who once provided his services for the state Legislature, said an ISO rating of Class 4 is “a big deal.”

“Class Five is also a good, healthy rating,” the Franklin, Tenn., consultant said. “When you get into 7 and 8, it’s weak.”

Hydrants are a critical element in the equation, he suggested.

“When a fire truck arrives, it comes with 1,000 gallons of water,” he said. “And it pumps it a rate of 1,000 gallons of minute. So, what the difference in ratings comes down to is the ability of the fire departments to keep a reported fire from being a total loss. Your window of opportunity is very brief. You’ve got a limited amount of time once the fire teams arrive.”

Another issue Mahurin raised with regard to the lack of hydrants is that firefighters dispatched to fires where water is scarce are thrust into a “really dangerous” situation.

“Going into a burning building is a very dangerous job,” the former vice president and general manager of Songer Insurance Agency in Beckley said.

“If you look at the workers’ compensation histories of public employees, in terms of frequency of injuries and severity of injuries, and the fatalities, being a fireman is more dangerous than being a policeman. So, you have people that do this very dangerous work and many of them do it at no pay.”