The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1875-11-17
FIRE INSURANCE.
Money Wasted and Money That Should
Be I1kested.

We have said good deal about life
insurance, and have been asked to say
something about fire insurance. 10
some extent we are decidedly in favor
OF fire insurance, and think in many
instances a good conduct Of business
demands the investment, but there are
nevertheless vast amounts annually
wasted in taking out policies for too
large an amount.
We take this view: If a man is rich
and has a great number of houses or
different risks, he should not insure at
all 1t would be better for him to take
the risk and lose building once or
twice in. a lifetime, than to bear the
burden of insurance Ona large amount
Of property that may never burn. The
burning of building is matter: OF
mere accident, but to insure it for large
amount is only a question OF time us TO
when the owner will lose it by prmi-
ums paid on his policies. In the one
way it is a matter of chance, but in the
other it is only question: Of time when
the property will be lost, and it is for the
rich owner to determine which course
he will take. The rich man will Ger
tainly pay in few years enough on
half dozen houses or risks, to rebuild
one house, even if it should burn.
There is another class, however, who,
we think, should partially insure. Men
who have their all i'll one building
should insure for noe more than one
half the estimated value of the perisha
BILE portion of the house. 1t should;b
borne in mind that many of the con-
panies do not pay policies erccedsng
about tUo-thirIs the actual loss. The
companies claim "saivage," which
means that they claim the advantage Of
all the brick walls, &C., left standing,
after which deduction they generally pay
about tro-thirtls only of your loss-no
matter how taryea poHcyyou may haoe'
Some of the companies, however, pay
the entire amount of the policy, II SO
much has been lost.
If brick building and lot sells for
5000 it is useless to insure for that
amount, because many of the compan.
les do not pay over two-thirds or three.
fourths, las the policy may contract,) of
the actual loss. The value Of the lot
say 81 900, the value of the shelving,
say $500, and the value Of the brick
foundations and fragments of walls,
say 81 900 more may be deducted show
ing the actual loss to be only ZOO.
A policy of about s., 900 is as much as
should be taken on building as des-
cribed above. 1t is common mistake
to suppose that the insured can recover
for the amount Of the policy regardless
of the loss. In no instance will any OF
the companies pay more than the actual
loss.
If you will read your policy you will
see if you have over-insured or paid the
too much money you
have done so to your own disadvan-
tage. Under no circumstances then
should policies he taken for more than
haJ the rutue of the house, exclusive OF
the lot and the brick walls which may
be LETT standing. There are in Able
vile thousands of .:ouses, and not more
than one in a thousand is burnt. Per-
sons insuring store houses, by reading
their policies will see that no shetri'g
or counters are insured with the build
ing, except when especially mentioned
in the policy.
We think all men who would be broke
by single fire should take out a policy
for onc-third or one-half of their per-
ishabe property, whether it be mer-
chandise, dwellings,, store houses, gin
houses, mills, &c.
The very rich men in New York and
other large cities do not insure, because
they are able to sustain the loss, and
:an make as much by taking the insu-
rance cs the companies do.