The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1893-12-29
FARM INSURANCE RATES.

Inc Boston Advertiser says: Inc
question of farm rates is being very gen.
orally discussed by New England under
writer's. The average experience of COM
panIes writing this class of business has
been very disastrous, and it is stated
that an advance of 100 per cent. would
not make it more profitable to write.
Rates on farm property have been ad-
vanced recently in Vermont. The new
rates on this class for Maine, as issued
by Mr.. Denny, show considerable ad-
vance. AS result of the advance in
Vermont the agents report that they are
losing business to the local state
companies, and ask if rates cannot be
reduced to meet this competition. 1t is
highly improbable that their request will
be complied with.
zone company states that its expert
ence on selected farm property in Yer
mont would justify rate of $l.50 for
three years. The present rate is 50.
Rate on farm property in New Hamp-
shire, which was formerly written for 81.
for three years, have recently been ad-
vanced to so cents per annum, with no
discount for a three-year policy. In
Some companies believe this rate too
ulBu duN w oCAOOIOO
property at less rate.
las the aggregate experience of the
companies shows an unprofitable record
on this class of business, the tendency
will be for some time to come to put the
rates up and let the property owner in
sure IN the mutuals if he does not care
to pay the advanced rate.
"The solution of the difficulties in
u,ifipo farm pronartv in oil nlaccqQ
of risks under present conditions, seems
TO be selection. Coed farms in pr0duc-
tive territory, written under co-insur-
ance form, ought to pay at a reasonable
rate. Farms surrounded by conditions
which make the moral hazard great
practically the only condition making
one piece of property less desirable than
another-are not insurable at any rate"
The secretary of the New England Fire
Insurance company, commenting on the
| above. says: "The companies are sin
cere in maintaining that they could not
write this class of business at the old
rates, which were undoubtedly too low,
and many companies are refusing to in
sure even selected farm property at the
| advertised rates. The Sun company and
the Insurance Company of North Amer
lea, companies which formerly did the
the most of this class of business in the
state, have refused to write any more
farm business whatever. The losses
have been terrible in the last few years
lightning has done its share and the
abandoning of farm buildings has been
very conductive to fires.
"Values have fallen so rapidly as tC
make farm insurance dangerous. Tt
illustrate" said Mr.. Hoadley, 81 knew
of policy for 81, $50 that was written or
farm buildings which originally cost anC
ordinarily would be worth more thar
that, but it turned out that the holder Ol
the policy paid but $3.50 for the entire
farm.
There is no doubt that the rate hal
been too low in Vermont for some time
and there is no hope for a return to the
old rates, although selected property
might perhaps be insured at a lower rate
if careful selection could be made. ThC
state companies are getting good dea
of business, although they are not cheap
er. The mutuals are particular to get
the highest stock rates. The local com
panles write fully as liberal policies al
outside companies, and all have thu
lightning clause. which causes loss b.
lightning where no fire results. We arr
writing farm business, but do not cart
for it very much unless the full rate il
paid. The outside companies hold the
theory that the local companies will alb
sOrb the best class of business, and tina
they will get only the poorer"