In the following example, if a homeowner pays $1 per year for fire insurance in a Class 10 Public Protection Classification (PPC) rating, then:

• Class 9 pays 93 cents, (a savings of 7 percent over a Class 10.)
• Class 8 pays 72 cents, (a savings of 28 percent over a Class 10.)
• Class 7 pays 68 cents, (a savings of 32 percent over a Class 10.)
• Class 6 pays 65 cents, (a savings of 35 percent over a Class 10.)
• Class 5 pays 63 cents, (a savings of 37 percent over a Class 10.)
• Class 4 pays 60 cents, (a savings of 40 percent over a Class 10.)
• Class 3 pays 58 cents, (a savings of 42 percent over a Class 10.)
• Class 2 pays 55 cents, (a savings of 45 percent over a Class 10.)
• Class 1 pays 53 cents, (a savings of 47 percent over a Class 10.) ^[8]

This information should only be considered as a guideline, as the actual rates a property owner will pay vary based on the proprietary formula their insurance company uses for calculating property insurance premiums. Individual insurance companies (not ISO) establish the premiums they charge to policyholders. The methodology a company uses to calculate premiums for property insurance may depend on the company’s fire loss experience, underwriting guidelines, and marketing strategy.

ISO offers the following general guidelines to help explain the potential benefits of improved PPC ratings for residents and businesses:

• PPC may affect the underwriting and pricing for a variety of personal and commercial insurance coverages, including homeowners, mobile home, fine arts floaters, and commercial property (including business interruption).
• Assuming all other factors are equal, the price of property insurance in a community with a good PPC is lower than in a community with a poor PPC.

ISO Mitigation Online reports the following breakdown for Tennessee communities as of August 2022:

^[8] www.isomitigation.com