Fairbanks homeowners could see drop in insurance rates
Published Thursday, September 4, 2008
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Stumble It!FAIRBANKS — A volunteer fire department northeast of Fairbanks reported Wednesday its fire-protection rating has improved dramatically, a change its leaders say will reduce insurance bills for many homeowners within its boundaries.
Steese Area Volunteer Fire Department chief Mitch Flynn said he got word of the change early this week. Flynn said the ISO, a risk-information service, improved the service area’s fire-protection rating after the department wrapped up a 3-year plan for improving its equipment, boosting employment and volunteer rolls and striking key deals with neighboring service areas.
“It has been a flawless 3-year run,” he said Wednesday.
The new rating, which Flynn said takes effect in December, indicates the largely volunteer department’s ability to respond to fires is inching closer to levels seen in more developed cities.
The Steese department serves an area of roughly 23 square miles and 10,000 residents, Flynn said.
Many of those residents — those with homeowners insurance companies that recognize changes in fire-protection ratings — will see their annual homeowner insurance bills go down due to the change, said Dave Nebert, chairman of the Steese department’s Service Area Commission. Flynn, the chief, estimated homeowners with applicable insurance plans could see a 20 percent or more decrease in future annual insurance bills.
The risk-information service assigns ratings to fire-protection agencies across the country, whether they be major cities such as Los Angeles or unprotected, rural areas. The Steese department’s new rating is two points away, on a scale of one to 10, from the city of Fairbanks’ rating and represents a three-point improvement from its previous rating.
Ray Hollinrake, president of the department’s board of directors, said the department and its directors have put an emphasis on improving fire protection and, in the process, reducing residents’ insurance bills.
“We try to give (the department) the best of everything,” Hollinrake said.
Flynn said the department, through its plan, added four new vehicles to its fleet of seven, hired a deputy chief and improved its training program. It also inked agreements with three other departments, deals that, for example, mean a full crew from Fort Wainwright Army post responds automatically to help Steese firefighters during each reported structure fire the department responds to.
The Steese fire department last year opened a new station on Farmers Loop, one built with a blend of neighborhood tax dollars and a state grant. Flynn said the department also received word this week that Congress has awarded it a grant to help add three full-time medic-firefighter positions over a 5-year period, a change he said will guarantee stronger 24-hour staffed coverage.
Nebert said he and other fire officials around Fairbanks, however, worry the prospect of future improvements in fire-protection service could be hamstrung by an upcoming ballot measure in October. The proposal — one of two competing measures slated to hit the ballot — would tighten the Fairbanks North Star Borough’s tax-revenue cap, a move Nebert said would make it tough to keep up with population increases though expanded services.
Community Discussion
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From what I can gather, State Farm doesn't base its rates on the ISO rating...
ISO and the insureance companys work very closely to control rates, always have and always will. They sleep well together. Just watch you billing, nothing will change.
This just goes to show what an outstanding organization Steese Volunteer Fire Department really is. Changing an ISO rating is a huge accomplishment and worthy of praise. Congratulations to Steese Fire Department!
Bugger--there really is no conspiracy with Insurance companies and ISO ratings. When the fire depts rates changes the insurance is adjusted one way or another---that is just how it works. Since the Steese had one of the highest ratings and now will go to middle of the road rating the decrease in homeowner insurance will be dramatic. For those of you that live out there--when the change comes thru contact your insurance agent--because every insurance company factors these rates in on premium.
I work for an insurance company and you should definatley call your company. Ours will take about a month or so to update our database but when it is in there we will be going in and updating all of our policies to get refunds out to our customers.
I live in the Steese FD and mine will go down about $460.00 per year!!
WAY TO GO STEESE FD!!!!
now the city council has a reason to raise property taxes.
Ist fo all Kudos to the SVFD. Good job. The goal of any fire dept should be to provide the best service possible. As for rasinig taxes, the Steese fire dept has nothing to d owith the City, please get a clue before you rant
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