Inside the Insurance Gradebook: What Waikoloa's PPC Rating Really Means
How do insurance companies determine your homeowner's premium, and what does the local fire department have to do with it? This month, the Wildfire Safety Advocates of Waikoloa (WSAW) hosted Stacy Sugimura, President of the Hawaii Insurance Bureau, for an incredibly informative deep dive into the Public Protection Classification (PPC) system.
For any community concerned with wildfire resilience, understanding this system is crucial, as it directly impacts insurance availability and cost. Here are the key takeaways from our discussion.
What is a PPC Grade?
The PPC is a score from 1 to 10 that grades a community’s ability to fight structure fires (not wildfires). A grade of 1 is the best, and a 10 means the area is considered to have no formal protection.
Waikoloa Village has a split grade of 5/9. If you are within 1,000 feet of a hydrant, your grade is a 5. Beyond that, it’s a 9.
The good news: Our community is well-covered by hydrants, meaning most residents benefit from the grade of 5.
How is the Grade Determined?
The grade is based on three key components:
The Fire Department (50%): Training, equipment testing, and the requirement that four firefighters must respond to a initial call.
The Water Supply (40%): The volume and pressure of water available to fight a fire for two hours.
The 911 Call Center (10%): Training, technology, and crucially, having backup power and communication systems to prevent a failure like the one experienced during the Maui fires.
Key Takeaway
Waikoloa Village has a PPC grade of 5/9. If you are within 1,000 feet of a hydrant—which most residents are—your grade is a 5. This system is designed for structure fires, not the sustained demand of a major wildfire.
Key Community Concerns and Revelations
The discussion highlighted several critical issues that directly impact our community's safety and insurance landscape:
"Coverage Gaps" Exist: High-value homes near the Four Seasons and on the Kona Coast may actually have a PPC 10 rating because they fall outside the five-road-mile coverage area of a staffed county station and the hotel's volunteer station only covers its own property.
The Maui Effect: Insurers statewide have become more hesitant to write policies in areas designated as "high brush fire risk" since the Lahaina fires.
System Limitations: The PPC system is not designed for wildfire events. It assumes a two-hour firefight for a single structure, not the sustained, community-wide demand of a major wildfire, underscoring the dire need for our own water resilience projects.
Did you Know
High-value homes near the Four Seasons may actually have a PPC 10 rating... Since the Lahaina fires, insurers have become more hesitant to write policies in areas designated as 'high brush fire risk'.
Why This Matters for Waikoloa
This meeting’s featured guest and discussion topic was about understanding home insurance in our post-Maui wildfire world, as well as connecting the dots between our advocacy and everyday life. Improving our infrastructure—like securing a second access road for firefighters and hardening our water supply against power outages—isn't just about safety; it’s also about economic stability for homeowners.
A better-protected community can lead to a better PPC grade, which can help keep insurance available and affordable for everyone.
We extend our sincere mahalo to Stacy Sukumar for his transparency and for demystifying this complex but critical system.
Stay informed. Stay involved.
The Wildfire Safety Advocates of Waikoloa
Watch the full video of the meeting to get all the details here:
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