Town's Improved Insurance Rating Can Mean Better Rates for Residents

The Office of Community Development recently participated in an Insurance Services Office (ISO) Building Code Effectiveness Grading Schedule (BCEGS) review. The ISO is an independent statistical, rating and advisory organization that serves the property/casualty insurance industry (including Fire Department Protection Class Ratings).

The ISO collects information on a community's building-code adoption and enforcement services, analyzes the data, and then assigns a Building Code Effectiveness Classification from 1 to 10. Class 1 represents exemplary commitment to building-code enforcement. Municipalities with well-enforced, up-to-date codes experience fewer property-related losses, and their citizens' insurance rates can reflect that. The prospect of minimizing catastrophe-related damage and ultimately lowering insurance costs gives communities an incentive to enforce their building codes rigorously.

The BCEGS is designed to re-evaluate each community on a five to 10 year basis. The review is based on an evaluation of Administration of Codes, Plan Review and Field Inspection practices. Amherst was found to have made significant improvements in all three categories, leaping from a rating of 6 in 2003 to a 4 in 2013 for residential and commercial services.

What does this mean for you? As the Towns rating has improved new construction could be subject to lower insurance rates. Check with your insurance agent before starting new construction projects.

The Community Development Office is very proud of this accomplishment and would like to extend its appreciation to Building Inspector Richard Keyes for the strides he has made in improving the Building Department’s operations. In addition, the office would like to thank the Board of Selectmen and Town Administrator for their support in the revitalization of this office.

The Office will continue to improve on these areas over the next 10 years, as stated in the Strategic Plan, with the goal of attaining a overall score of three for commercial and residential properties in the near future.