Local fire rate upgraded

San Angelo property owners could collectively save as much as $2 million annually thanks to a recent decision by the Insurance Service Organization to improve the city's fire rating.

The ISO, which determines the ability of municipalities to save their residents and businesses from fire damage, dropped the rating from a four to a three, likely cutting commercial fire-insurance rates by as much as 8 percent and residential rates by up to 2 percent, said Fire Chief Brian Dunn during Tuesday's City Council meeting.

"It was a pretty good jump," Dunn said. "I was quite pleased."

The ISO grades cities on a 100-point scale, with 90 points or better graded a 1, 80 to 89.99 graded a 2, 70 to 79.99 graded a 3, and so on.

The city's grade had been 63.3, Dunn said, but the ISO upgraded it to 78.97.

Officials began taking steps in 2005 to lower the city's rating ultimately to a 2, which would result in roughly $4 million in savings for the city's property owners, Dunn said, and an economic development boost of up to $12 million.

Although achieving a 3 rating cost little and involved mostly making changes to the Fire Department's training programs and the way it handled paperwork, Dunn said, an additional reduction cannot be achieved without moving fire stations and incurring other significant expenses.

One key addition, Dunn said, would be the purchase of a 100-foot-ladder truck at a cost nearing $1 million.

"The ladder truck and the manpower would be enough to push us over" 80 points, he said.

The city hopes to make those changes within two years, said City Manager Harold Dominguez.

"We're already started in making the adjustments," Dominguez said. Dunn said a drop to a 2 rating would lower residential premiums by 7 to 8 percent and commercial rates by 1 to 2 percent.

The lowered rate will go into effect April 1, said Mayor J.W. Lown - meaning lower premiums once property owners renew their insurance policies after that date.

"We're pleased," Lown said.

"That's good news."