Better fire rating should lower insurance costs

Home and business owners should see some reduction in fire insurance costs in New Albany nearly immediately, thanks to a change in fire rating.

Mayor Tim Kent said the state fire rating bureau has notified the city that the rating will improve from a 5^th Class to a 4^th Class.

The new rating took effect June. 8

The new rating applies to structures in the city limits, within five road miles of the responding department and within 1,000 feet of a hydrant. Structures not within the 1,000-foot range will get a split rating of 4 X, according to the bureau.

Most rural fire departments start out with a 10^th Class and progressively move to lower, better numbers.

“Very few cities our size have moved from a 5 to a 4,” Kent said. “Some homeowners may save up to $200 but commercial and industrial businesses will be helped the most. It also may help with our industrial recruitment.”

“This will only show New Albany and its fire department in a positive light,” Acting Fire Chief Mark Whiteside said. “We are very proud and we want our citizens to know we care and will continue to work on improving the services we provide. I can only smile with pride when I know how hard this fire department staff has worked to be in this position.”

While some insurance companies are aware of the change, it ultimately is up to the property owner to make sure his or her insurer knows about the new rating.

“It is important now that we continue on and improve on what we have accomplished. I encourage everyone to contact their insurance carriers and see if, and when, they may be able to benefit from this,” Whiteside said.

“We’ve done everything they asked without spending a ton of money in the last 10 years and the fire department has done a good job,” Kent said.

The rating bureau emphasized that the city’s rating is not the only factor in determining fire insurance rates. Types of construction, occupancy, private protection and exposure from neighboring structures may also be considered.

Some specially rated mercantile or other special class risks may need to be surveyed for a specific rating. These usually require potentially more water than the average structure if a fire occurs.

New Albany moved from a “6” rating to “5” about 10 years ago, the mayor said. The city can still perhaps eventually move to an even-better “3” rating but that would require hiring new full-time firefighters and could even require building a new station so officials would have to weigh the benefit to property owners against the increase in tax cost.

“As a department, we are very proud of the accomplishment and services we are able to offer to the city and its residents,” Whiteside said. “This was a long, hard road to get to this point and we did it as a group. It was a joint effort from everyone including the Mayor, Board, water department, 911 staff, and fire department staff. It is something to really be proud of.”

“I appreciate the opportunity to be put in the position I am to represent and be permitted to announce such a great benefit to all involved,” Whiteside concluded.

Again, the amount of insurance savings will vary from case to case. “Even if you save only $100, $100 is $100,” Kent said.