Jackson's ISO rating changes for the better

A lower rating from the Insurance Service Office will translate into a drop in homeowners insurance premiums for Jackson residents.

City officials were notified last week that its ISO rating will be lowered from a five to a four, effective March 1, 2006.

"Getting your ISO rating lowered from a five to a four is a big deal," Jackson Mayor Paul Sander said. "The lower the rating, the better."

In April 2004, the ISO company warned the city that it was in danger of moving from a five to a six. The ISO completed a detailed study of Jackson and found it hadn't increased its fire services at the same curve as the city's overwhelming population and land area increased during the 1990s.

Jackson's fire chief Brad Golden said the main reason for the drop in the ISO rating was because the city hired four additional firefighters, something the ISO recommended last April.

"We also purchased an 85-foot refurbished ladder truck," Golden said. The fire department now sends two engines and a ladder truck to every first-alarm call, where before it only sent one truck.

The dispatch call center now has two dispatchers working 24-hours a day, seven days a week. The firefighters go through more emergency medical service training sessions.

All these improvements resulted in the lower ISO rating, Golden said.

The ISO has provided ratings for years and those ratings have become a standard benchmark for insurance companies. The ISO encourages insurance companies to offer discounts in communities with good ratings.

Kevin Sawyer, an insurance agent with Shelter Insurance, said the lower ISO rating will have an effect on residential and commerical insurance premium rates.

"The difference between a five and four will mean significant savings on insurance premiums," Sawyer said. The actual savings will vary depending on the value of the home or property.

The insurance premium difference from one rating to the next depends on the market, Sawyer said. Some markets lump a few ratings together, like 1 to 4. Others set a different price for each rating.

The best ISO rating is a one, which Golden said is very difficult to obtain. Currently, Kansas City and St. Louis are rated at a one, and in Southeast Missouri, no city has a rating better than a four. Cape Girardeau's ISO rating is a four.

Every decade, the city is surveyed by the ISO company, unless a major improvement is taken by a city to change its rating.

"The ISO organization saw that Jackson is taking steps to improve public safety and rewarded us for our efforts," Sander said. "The next step will be the final planning process for a possible new satelite fire station in the next year or two."

In the long term, the city will eventually need to build a satellite fire station if it plans to maintain its ISO rating. That would require a multimillion bond issue or a sales tax increase. It would also require an additional $500,000 to staff it.

Golden said he doesn't know if building a new fire substation would lower Jackson's ISO rating to a three.

"I can't really say for sure," he said. "I know that it won't hurt us any on the ISO rating scale."

jfreeze@semissourian.com

335-6611, extension 131