Rural Floridians Face Insurance Woes After Change in Fire Risk Rating

Florida residents in rural areas may be having fire insurance difficulties now that insurers have begun using revised community fire ratings that rate some rural counties a high risk for fire loss.

The industry’s Insurance Service Office has assigned new ratings based on a county’s risk of suffering fire damage due to forest fires or faulty conditions in homes. Insurers began using the new ratings June 1. ISO supplies insurers with statistical, actuarial, and underwriting data that they use when setting rates.

A number of rural areas have been designated Class 10, which covers homes that are more than 1,000 feet from a fire hydrant and five miles from a fire station. ISO estimated that in the event of a fire, it would take at least 15 minutes or more for a a fire department to respond.

The new ratings expanded the risk zones in several counties. For example, more than 3,000 homes in Polk County were moved into the Class 10 category, which means eight percent of country residents have been deemed at high risk of fire damages.

The Polk County fire department surveyed insurance agents to assess how policyholders’ premiums would be affected by the change in rating territory. The informal survey found that homeowners in Class 10 areas could see their premiums increase from $700 to $800, with at least $150 more for newer buildings.

So homeowners could be paying more, that is if they can find coverage at all.

Gary Garland, owner of the Lakeland, Florida-based Garland Insurance Agency, said that the chances of homeowners in affected areas finding fire insurance is probably slim. “I don’t even want to insure it,” he said.