Some residents of Mobile, Alabama may find that new safety scores could bring their premiums down.
Local fire departments are playing a new role for homeowners insurance customers in Mobile, Alabama, in that the safety ratings that they have been issuing are making it possible for those policyholders to save money on their premiums.
An increase in fire stations and firefighters, among other factors, are converting into coverage savings.
Alabama homeowners insurance customers are experiencing a faster response time due to many factors, including a raise in the number of firefighters and the fire houses where they are stationed. This means that the cost of fire damage is shrinking and premiums can therefore decrease a little.
The homeowners insurance companies are recognizing the difference that the fire rescue departments have been making.
According to the mayor of Mobile, Sam Jones, “Most of that is due to the firefighters you see here, and the entire mobile fire-rescue department and the fine job they’ve been doing.” This was a part of a major announcement that was made to homeowners insurance policyholders from himself and Stephen Dean, the fire chief. Mobile now has a new ISO score that may be decreasing the premiums paid by its residents.
Jones explained that “We’ve gone from an ISO rating, from a 4 to a 3, I understand from the chief, and headed toward 2.”
ISO is an independent organization that serves fire departments, insurers, and homeowners insurance regulators. It is the agency that assigns a score to represent an area’s associated fire safety risk. The score is assigned on a scale of 1 through 10, where a lower score means a lower risk.
Mobile has achieved better score after hiring 45 new firefighters to their force and opening two new fire houses. Fire Chief Dean said that “Surprisingly, we almost got to a two, we have more points than the city’s ever had in its history.”
The city isn’t finished its efforts, as it still intends to boost its number of fire stations in order to fill in the gaps in coverage, so that a fire truck will be able to reach any given point within a time span of 6 minutes or less. This could mean that homeowners insurance premiums may fall again in the future.