Fire audit saves money

By Mike Buhler

Sun editor

In the summer of 2008 the Glen Arbor and Empire township fire departments joined forces as the unified Glen Lake Fire Department, and things have been good for both communities. Beginning July 1 of this year, the first synergistic reward will come to both communities as insurance carriers recognize the cooperation, and begin to lower insurance premiums on most area properties.

After an audit by the Insurance Services Office (ISO), the Glen Lake Fire Department was able to prove its proficiency in reaching fires in a timely manner, and having the equipment and skill to pump the required amount of water. This in turn lowered the ISO ratings for much of both townships.

Most homeowner’s policies show a fire class or rating, and in Glen Arbor Township, for instance, that had always been a 9 — the highest (and worst) score. For those who live more than five miles from either of the Glen Arbor or Empire fire stations, that rating will not change. But beginning in July, those within five miles will see their ISO rating drop to 7. In The Homestead and the Village of Empire, that drops to 5 because there are fire hydrants. These lower ISO ratings can mean annual savings of $100 or more.

Tom Ingold, owner of Devette & Ford Insurance in Glen Arbor, notes that most but not all policies will experience a 15-20 percent drop. Several factors outside of just the homeowner’s policy come into play. “It is hard to give a specific dollar amount, but most homeowners in the affected area will see some savings,” he says.

While local agents are aware of the change, every homeowner is encouraged to call their personal agent and alert them to the ISO rating change. And if the policy does not go down, it might be time to shop around for a different carrier. Devette & Ford notes that Michigan-based insurers are more likely than national carriers to offer the savings.

Glen Arbor Township Supervisor John Soderholm remarked that, “this is truly a win-win for most everyone. The service level has gone up, the insurance has gone down — I’ve even heard of someone saving $400 — and this really offsets the fire department tax levy on the property.”