The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-12-26
INsuRiNCE comr.,NrEs. METHODS.
An Element that Must he Considered by
Real Estate Ownrr~

!
tho ilrc insurance rate. MS we'll as tho rents OF
| the piece If property in which they arc think.
| ing Of investing. The rate Of fro insurance
| makes u Zig difference in the gross return, as
| IN. INSURANCE, ill, M, .,x,s a. ,I,,ost ,,,vnv.
| -, So -,
| ph'" by III" owner just ht present mo ihsu-
rance rates on property are firm and with
tendency TO rise. An increase in insurance
| -, ,,,.,, - -. T.; -.
rates amounts IN e'tee. 10 M increase IN taxes.
| and the present increase in rates greatly
Offsets the icssoniny OF taxes cnuscd 10y the
economynnd .nicency Of the local Democratic
Afrw large estates do not insure any of their
own rroesrn' III" h'. ,,, an insurance account
oil their own. where 'h"y charge nr the pro-
nrom,.,, insnrsJ nnI I.',, ," Sua. ."s
INV IRON, '''s account
Large corporations almost always do this.
though rxc.ntiors may IN, u,,l, IL Nv, ana.
Of part, uar ri"rrs Of ny r" nru or" ion
| like tho Now York central and Pennsylvania
railroads own cnuuei. rrrror,v to Keen nr in.
surnncr comrnny going If they were TO
| I a., 49,. - T.,
aa h"'h IL" me total TINT some IN
surancc COMPANIES receive. some of the life
NV ','o". 800, u
the lhs"f'hS oil property to Keep i're insur-
Of ,h.sC commands +, III, IN air ,yn insurinu
In, - uH oru n rhn',
I 49, '''''>''
they loHn money to insure in what mpany
,hey r,rnsc. one o, In. largest life insurance
COMPANIES at ono time ran fire insurance
company Of its own. but it was not deemed
! cNrrIIuut to continued il.
/ II loves, H. surnnce ratio is on small pirate
| dwelling h'usr,. Here the rate Is Us low as
var ro9y or RI iour CENTS on 'o" MILDRED doas
| Tor !! year. Tho insurance companies would
rather insure, small! dwelling houses than
| liih .u"nlc AFRO not SO iavorahly regarded as
tie hricIi houses on the west side, letween
! avenue house. Tie reason for TINS Is
| that tho possibility OF loss on Il largo
! house is greater than III. Possibility
/ OF loss on a small house. There is
rs"ue and nor" fires in it. and j. ~ inrss
@ loss on HIT fire avar"s scy"ra mes s ms
much as The loss from tlio on !, small house
Vanicrhiit's place Tho Breakers" at New.
! rUlt would wipo ont thci: premiums on all
OF The Companies is 10 ,ivie r,sks and to
! limit losses. Bvinsurlng many pieces OF pop
he srs on tn. east sd .s rom
! street up to Houston. east ot tho Bowery. has
;n S sn r.'e h Fl "y at tu IS in the " sa
! dwelling house district on tho west side in
nw H'.r and Il, tn. tcnnnts is onsI"r,d by tho
! Insurance companies in fixing the rate.
| Wnere there are settlements oi Jews the. rate
comianies rntus t. issue potes , 1t all "'
In some buildings in this east side district
cent. These ar. the buildings used Tor manu-.
featuring in extra hazardous businesses and
Insurance is Lased NOR" ON tho Chance OF loss
estate 81 iae AK to c
thrir rates, on these LuIIlinss Leiore they by:
difference in the net returns 4 ten per cent.
insurance rate amounts to several tunes tho
al hs 70 hsH S tn:
q Is the nish 65s
them in the Shape OF. rent.
:, The Inspectors and other representatives 81
tIs property thy insure than they Tssd TO-
nS at .asa
Of tho business n number Of the smaller com:
raniss, who transferred their policies, and
only the stronger companies. we're left. and
| they have an understanding with one another
one another about the facts their inspectors
find: 30 that man ian, whose . record is bad risk
ny no class h Deter he cam
remove the cause for the original bad cassih-
cation. noo ro,as Oh, ,o,+ .,a. =, +owr h..
a material advantage over he east SIDE; Buy:
ers OF renl estate and inyestoEs consider that
! ~ sN'he '"ti' 80
| warehouses on tho west sfdc have an insur.
anco ratio OF lees than hall q one per cent. Tor
| the goods they hold. while II warehouse man
| wcreto build OF Hester street east OF the bow
he w1ad ma thHt MS s n4o
Small dwelling houses are better risks than
office buildings. for the same reason that they
| dwelling houses, There Is about the same
chance OF a fire in a large building with 200
| occupants as in forty small buildings OF Ave
| occupunts and the loss from a fire In . big
| building will average much m ore than the loss
| from fire in a small building. This Affects tho
| insurance rate on office buildings