Homeowners Rates and the Stratford Fire Dept. Improvements

Will your homeowners insurance go down due to recent improvements to the Stratford Fire Department?   Statements made by Stratford Fire Department officials and reported by the CT Post need some clarification.

The CT Post article from April 29th, “Fire Department upgrade means lower insurance” reports correctly that an insurance rating organization has upgraded the fire department.  The fire department officials should have quit there. 

In short, we do expect to see a price reduction, but nowhere near the $100 or more that are mentioned.   Perhaps on a larger, more expensive home paying $4000 or more on homeowners insurance annually might see that much of a savings, but most will see a more modest $10 or $15.  And it might be hard to detect when reading the insurance policy because there is no line items showing how the protection class (that’s what the fire department rating is called by the insurance industry.  Look for that or “PC” on your policy).

Still reading?  OK, here’s the detail: 

Don’t expect a refund or rebate – insurers can’t immediately change their pricing.  They have to file rate changes with the CT Insurance Department and get approval before that price changes.  Most insurers are working to implement the change this year and the change will take effect at the next renewal of each policy.   No insurer that we’re aware of is making this change retroactively.  It will not be a line item that shows how much difference in premium it is but there will be a change on the policy from Protection Class (PC) 4 to 2.  Savings will not be enough to really be noticeable and unlikely to be near $100.   Keep in mind that homeowners policies pay out claims for dog bites, injury and other liability issues and well as lightning, wind, freezing, hail, smoke and a bunch of other things besides just fire.  Fire makes up just a small portion of the insurance costs.  And an improved protection class won’t stop a fire from happening.  At best, it might help put it out a little quicker.  

I think the officials at the fire department wanted to point out to their progress.  And they should! 

 

Stratford Fire Dept

Stratford FD HQ

 

 

 

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