Commissioner of Insurance Jim Donelon congratulates the New Orleans Fire Department for achieving Public Protection Classification 1 status for the first time in history. Homeowners in New Orleans can expect rate reductions in their fire insurance premiums this fall due to this reclassification.

Donelon recognizes Superintendent of Fire Timothy McConnell, firefighters and local officials in New Orleans for the improvement of their fire protection grading from Class 2 to Class 1, which is the best protection grading possible.

"Through diligent work and cooperation, increased protection of homes, businesses and families from fires is possible. Improved fire protection ratings are a testament to the hard work of fire departments and community leaders and we all reap the benefits in the form of improved safety, peace of mind, and lower premiums for fire insurance due to decreased risk," Donelon said.

Homeowners in New Orleans and east of Chef Menteur Pass could see a 2.2 percent decrease in annual premiums under the new grading, saving homeowners about $56 for fire insurance for a home valued at $150,000. Homeowners in New Orleans and west ofChef Menteur Pass could see a 2.2 percent decrease in annual premiums under the new grading, saving homeowners about $35 for fire insurance for a home valued at $150,000.

The amount of the premium rate reduction will vary, depending on the value of the property, where the property is located and the rate schedule of the company insuring the property.

Fire protection grading is promulgated by the Property Insurance Association of Louisiana (PIAL) and approved by the Louisiana Insurance Commissioner. All fire districts are graded on a scale of 1 to 10 by PIAL, with 10 representing no fire protection and 1 being the best. New Orleans joins Bossier City, Shreveport, Monroe, West Monroe, East Bank consolidated, Mandeville, Kenner and Baton Rouge as having achieved Classification 1 status.

A variety of factors are considered in determining a district's grading. The number of dispatchers on duty, the number of firefighters and fire trucks, training and equipment, and the availability of water all affect a district's grading.