The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1878-01-02
What we Know About Fire InSur.

On the subject OF insurance, VIC nursclve
have ieen tried as by fire. Our experience
therefore. should excuse what might Other
wise seem 10 be assumption ON our part in O
icring Il few suggestions to those about to III
sure their property.
Insurance to limited extent. is often nee
cSStry to the safe conduct OF business, an
none who have the bulk OF their property y II
any one building, or III amy one risk OF an.
kind, should neglect TO take out q policy 70
at least Il portion of the loss that would follow
in case OF fire, l: man is rEh, however, an'
has many houses, he need notinSurc at all, be
cause his risks are scattered. and the aggregat,
premiums would in q little while amount Il
asuiIicicntly large sum 10 rebuild any one o
the structures. II is said that A.. I. Stewar
OF New York, did not insure lis numerou
buildings, he himself being us rich as tn
companies and as able to insure his own prop
er.y as they could.
As Il rule, we believe not one MAJ in ten, il
this county, who inSureS, gives the subjcc
any further thought than 10 20 To an ;Ecll
and pay him u certain sum iura policy II
any company which the agent may represent
The insurance of property Is i written con
tract between the parties, and those inSurinG
are supposed to know what they are doing
In ease OF loss all the advantages HoucllSafct
to the company are invariably anu rightly
claimed.
1t is important first to select solvent com.
panieS, and secondly To observe closely thu
terms upon which the company agrees TO IN
sure. some companies require the insured Il
Jake L portion OF Inc FISK, anu III cANe nl HIS
they pay only their pro rata share OF the &C
tual loss. This may be fair, but 1t is not best
for the insured. It IS always best for the In
surel to avoid such conditions. 1t .compli
Gates Il settlement. in which nine times out d
ten. the insured will be dissatisfied.
We have personal knowledge or thedestruc.
lion by fire of six stores. The property had
been insured, but with the usual inattcntior
the owners lost one thousand dollars of what
they otherwise would have recovered from
the insurance companies. The mistake In
this instance was that the counters and
shelves were not specifically mentioned and
insured for Il sun named. Counters ana
shelves not being fixtures they were rightfu!.
~ excluded from the adjustment OF the loss.
cS on insurance.
Another case exactly to the point is that OF
Il steam mill recently destroyed, valued III
5000. It's owner had insured 1t to the extent
of $2.2W. After the adjustment: OF the losses
the companies paid only 1850. This differ,
encc OF $500 Mas Il clear loss to the owner and
proportionately to the gain Of the companies.
In this case as in so many Others, the owner
had not given that care to the transaction
which its Importance demanded. An engine
which cost 5000 had been insured for 81 900,
but the damage was estimated at 500, and the
companies although they hau received pre-
MUM On $1,000, did not pay more than the &C
tual loss. The gin was Il very superior ma
chine and cost perhaps S4OO, while machiniStS
and others assessed the damage at only about
$500. Here. again, the company saved S2O.
The same was true of the press on which the
Insurance was greater than the damage. The
mill house cost between 81 $50 and $1,000, and
was totally destroyed. Upon this structure.
however, there was an insurance OF only SOU
which amount was recognized and paid in
full. II the owner had insured the house for
81 200; his gin for 500; his press for $50. and
his engine for 300. he would have recovered
every cent for which he had paid premium.
The insurance np0n the several drtictcx Wds a
separate and independent contract. The COM
pnnies do not aggregate their losses and pay
upOnthem as q whole.
No maj need insure with the hope ofmaking
money by the operation, as In no instance do
the companies pay moro than the actual loss.
We think 1t prudent to takca policy for not
more than one-third or one-half the probable
loss in case Of fire.
The above has been written not against the
interests of insurance companies. but in the
Interests of property owners who too fire.
squently arc not heedful enough in lookingin-
to the terms of what is rcally& contract: 1t
is as necessary to have n clear understanding
of the terms and scope Of an insurance policy
as we usually try to have of the validity OF
title deeds. We paid high for what knowl
edge of insurance we possess, and we give
the public the benefit OF 1t.