The Providence news. (Providence [R.I.]) 1891-1906, 1893-05-02
NEN INSURANCE RATES.
The Universal Mercantile Rates Adopted
in This City by
THE INSURANCE ASSOCIATION.
How IL VIII Work and What Its Effect
VIII Be--A New Scientific Mode of
hating That Offers Premium for
Good buildings.

The adoption of new system of fire
Insurance ratings by the Insurance asso-
citation OF Providence is question that
will interest every property owner in the
city.
For two years past the fire insurance
companys have been making suggestions,
computations and calculations with a
view of establishing some sort
of uniform rate that would
be helpful TO themselves. aud prevent the
frequency OF fires by Offering some in
ducements for superior elias ,es of con-
struction. Tue need OF some new system
was emphasized by the great number of
disastrous fires during that period
the result of which have been such seri-
Gus losses as to drive fifty or sixty COM
panies out of business. The remaining
compaGies have been so crowded with
business that they could not afford
To handle IL at the rates offered.
The companies generally have not
made money. and they were fore ed
secure some method Of rating that would
lessen the rates on hrst-c.ass buildings
and Increase tnem on poor buildings,
both changes being made in conformity
TO the risk involved.
After two. years the universal mer-
system fixes a so-called standard rate for
standard building in standard city.
That rate is 25 cents for 500 Of Insurance.
No standard city exists aud IL Is ooubt-
iul IL a standard building exis. so that
that rate may be said TO be the theoret-
ical ane only. To this rae is added
various charges for detects In the con-
struction of buildings, for the quality Of
its contents, and for the condition or tn
tire department., and tor the tire record
Of the city tor five-year perioa previous
to the liking or this rate.
Providence Rate.
Upon these calculations Charles M:-
Klunuey and John Jacobs have been
Working for some months and their fig
ures led to the adoption by tie executive
committee or the standard rate Of 1924
cents tor this city. In Boston tDe
standard rate Is 3S cents. The
difference between the rates Il the two
cities Is due To the superior fire record of
Providence during the last five years and
the excellent c)uuitlon or the tire depart.
lnent. The average loss in Providence
during the past i've yesrs has been les,
tnau 50 year for each 1000 of insur-
ance (So Is the standarI.) In point OF
construction, Providence Is inielor To
the general construction la Boston and
our Dulluing laws are lax aud insufii-
cient
having established the standard rate
the schedules OF additions and deuuc
tions are liked by the national associa-
ton. "A few OF these changes may be IN
,erestlng. A standarI building III a
city with the standard lire depart
meat, would have deduction Oh
~ Oh l FER cent. ior every additional
lac tngine within its district owned b.
Tue cay. lt would nave deductions made
tor a s. s,e OF sprinkler. lor a system OF
hydra.Ls aud hose at distances OF $40
fs,W a
IS means OF various exter.ial app iauces
OF TINS klLd The standard Iale ca De
greatly rea aced, buS IN no cass can the
rate ~ below
Minimum of 12 Cents.
The standard building Tor Instance has
either an iron or a tile roof. Ii the roo
is slate au addition OF cents is made,
if of gravel tn, addition Is cents The
STANDARD partition wall Is IL inches.
thick at the fifth s6Ory. Any less thick
hess tnan TINS IS charged as extra ate.
All through The construction these
charges run. amounting 10 large OF
small suu. s according 10 the hundred and
And one points covered.
Management Charges.
There are charges also which are due
to management. An unprotected ash
barrel III the yard against the building
costs the insurel 10 nts additional in
insurance. III the bottom Of the eleva-
tor ell Is used AS store room Tor oily
Rags and tools the Insured is char. ed 90
teIts aOovs the standard rats Tor MS
building.
Rates on stock.
The rates OH Tue stock are determined
BY its quail y aud the character OF the
tenants and tue business engaged in.
For instance building useI for a whole
sale paint and oil business is charged 100
cents above the standard, anu the SOCK
Is charged 200 cents above the standard.
The minimum rave on STOCK Is % cents.
It's Eject
The effect of the changes proposed can
not yet be definitely fixed. Mr.. Harris,
secretary OF the association, is calcu.
lating test cases of few buildings,
but mis- tests are made mainly To cover
the rates on stocks rather than the
rates on buildin-g. IL Is tuought, how
ev.r, that tae average rate will be higher
Oh bulldogs, but that the increases will
almost entirely TALL upoa inferior build
ings. The new schedule was adopted by
the full associate ,n of twenty-seven
members on April 20. AID viii 10 put
into elect as sooa as possibls