Sometimes, the efforts of communities to minimize fire risk can pay off for residents in lower insurance premiums. In Hewitt, Texas, homeowners have witnessed significant reductions to their policies thanks to initiatives that have improved the town's fire safety rating. This has involved updates to the fire department and an increased water supply.
"The city's fire risk and protection rate dropped from a 6 to a 3 on a scale developed by the Insurance Service Organization, a trade agency that evaluates property and casualty risks for communities across the country," explains Regina Dennis of the Waco Tribune. "Insurance companies use the rating system, which ranges from 1 to 10, along with property loss history for a region in setting premiums.
The news is a reminder that improvements made by individuals as well as civic organizations can influence pricing for homeowners insurance policies. In Hewitt, the fire chief says the updates will lower premiums by 10 or 11 percent on average, with some variability depending on the material from which homes are constructed.
Regardless of a community's fire safety rating, the stipulations of a homeowners insurance policy need to reflect the most accurate and up-to-date value of a property. This requires continuous review and updates that are made to reflect changes in the replacement value of a home or business. Even if policyholders enjoy reduced prices thanks to better fire safety infrastructure, it's still critical that their policies correctly state the home's valuation.
At e2Value, we've developed a line of solutions for professionals in the insurance industry to generate high-quality, reliable and consistent property valuations. Contact us today to learn more about how our suite of tools can be customized to your business needs, whether you need valuations for individual properties or your entire book.