An ISO rating is a safety indicator used by insurance companies in a uniform system to base their insurance premiums. An ISO rating reflects the rating of numerous fire department factors to ultimately gauge safety levels.
Insurance Service Organization, or ISO, is a group of professional evaluators that assess fire departments. Each fire department is assessed a rating based on the number of personnel, training level of personnel, water access, equipment quantity and equipment quality. This rating is reflected in insurance premiums for nearby buildings; higher ratings reflect a poorer quality of fire protection service, which relates to higher insurance premiums due to the high probability of loss.
ISO ratings are based on a uniform system across the United States. Some insurance companies have discontinued the use of ISO ratings to calculate rates.