Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-05-16
MERCANTILE INSURANCE
The New Schedule for Rating as Recently
Introduced Here.
1t Is Claimed the General Eject Is to
Increase Ratcs-Thc Side of
the Companies.

by the adoption of schedule for the rating
OF mercantile property for fire insurance.
There is no objection on the part of prop
erty owners, as far as known. to the form
of the schedule. or to the fact that def
mite system has been adopted, but there is
decided objection to any change or to the
Introduction OF any system which results in
the increase In the rates which the business
men OF this city now pay for their insur-
ance. This opposition on the part of bust
ness men to increase fire insurance rates
Is based not on Discrimination to pay 4 just
return for the protection which is afforded,
but because the business now done by the
insurance companies in this city is believed
to be extremely profitable and there is no
necessity on this score for an advance in
the rates.
Insurance companies all over the country
recognize that in Washington fire risks are
much superior to those in any other city
in the country, owing to the advanta ges
which are enjoyed here, arising in part from
the broad streets. the absence, to a large
extent at least, of overhead wires an eX-
cellent fire department and other considera-
lions of like character. For this reason the
rate for insurance should be lower here
than in any other city, and 1t is, although ii
Is claimed by some that this Is not so alb
solutely the case as the superior conditions
existing here warrant. The business men
and citizens generally who own property
consider that they are entitled to reap the
advantages which property owners living in
such city ought to enjoy.
The Mercantile Schedule.
The system which has been quite recently
adopted is based on the mercantile schedule
Starting with what is known as a basis OF
% cents, the property is scheduled according
to the risk which II is shown to have The
basis rate is supposed to apply to a bull ling
that is a number one risk. having the min
imum number of openings and protected by
sinh al val nf Gl-v lfsyht
elevator shafts, staircase openings, lumber
rooms and other features which are sup
posed to increase the risks from fire are set
down at from cents to 10 or Is cents. in
addition to the basis rate. For example, a
building that is considered TO be a number
one risk Is rated at % cents on the hundred
Then, IL there Is an open elevator shaft, an
| addition of 10 cents is made: and II there is
a stairway opening, ) cents Is added, which
makes the total rate on the building 40
cents per hundred. Any other feature about
the building which is thought to increase
the fire risk is rated in the same way. All
the details are set down in the blank sched-
| ule. 80 that 1t can be seen how the total
rate is determined.
The same schedule is applied to the
stock and the rate increased with the multi
plication OF the what Is supposed to be
additional risks. The rate for the owner
of the building is affected well that
of the tenant. Heretofore the rating of
buildings and stock has been done by a
committee from the underwriters. who were
accustomed to inspect property and place
upon 1t a rate which, in their judgment,
was in keeping with the risk. Under the
schedule, however, there are certain fixed
charges for certain defects. as they might
be termed, and there is said to be less
| opportunity for the exercise of the indi-
vidual Judgment of the inspection commit
tee. Some of the business men are OF the
opinion that insurance has been largely
advanced, while others state that, with
betterments made by them, the rate under
the schedule is about what it was under
| the old system.
The Insurance Side.
1t is claimed by the insurance men that
| the property holder in this city does enjoy
| in the reduced cost of fire insurance as
compared with the rate prevailing else
| where the peculiar advantages possessed
| by this city, and that the basis rate In
| other cities is greater. 1t Is also claimed
| that IL was not the purpose In adopting
| this new schedule to increase the rates.
| 1t is asserted that the effect of this more
| scientific system OF rating, as it is called,
| will result in the Improvement of risks
and the removal OF many features which
are the result of carelessness and inatten-
| ton and are a source of danger and the
| cause of frequent fires. Under the opera
| ton of this schedule it is asserted that IL
| property owner persists In keeping his
premises in a bad condition he Will
be obliged to pay for doing in increased
rates for his fire insurance. while the owner
who corrects deficiencies and keeps his
premises in a good condition will be re-
warded by paying less for his insurance
than his careless neighbor. 1t Is further
urged that trial of this system will show
that, generally speaking. taking the city
as a whole, the rates paid for fire insur-
ance will not be greater under the schedule
than they were under the old system.
A Standard Building.
The description in the schedule Of a stand
III Tia bull
basis rate of twenty-five cents, Is as fol-
lows: walls. brick or stone; side walls,
parapet, with no openings; roof, metal,
slate or gravel; skylights, glass, to be
at least half inch in thickness, or pro-
tected by approved wire netting; cornices,
brick, stone metal; height, not over four
stories above street level area, ground floor
5000 square feet; stairways. inclosed or shut
off at bottom by Self-closing doors; we'll
holes Qor light, none, unless covered at
each floor with glass at least half inch in
thickness; elevator, inclosed In brick well,
with standard doors, or supplied with self
closing matches; occupancy, one mercantile
occupant offices and dwellings,. mo manu-
featuring, mechanical specially hazard
Gus occupation); exposure. none
If the building does not come up to the
above standard. then the following addi-
tional charges are to be made for deficien-
cies, viz:
ROOf.-For shingle roof. add 5 per cent;
for mansard roof, not entirely of iron
stone or brick, add 10 per cent; for compo-
sition roof, add ) per cent; for continuous
metal roof lover solid walls rising thereto
of adjoining buildings, separately rated,
add per cent.
Skylights.-For skyliGhts other than
standard (each), add per cent.
Cornice.-For wood cornices coping or
rear frame piaZzas, add per cent Height.
For each additional story above four add
10 per cent.
Area-For each 800 feet or fraction there
of over 5000 feet ground area, add per
cent Buildings occupied solely for offices.
or offices and dwellings,, make no charge
for area. Stairways.-For other than
standard, add 3 per cent
Well-holes.-For each floor pierced other
than standard, add 3 per cent Mote
Where charge is made for well-hole that
for stairs may be omitted) Elevators
Openings for other than standard add for
each 10 per cent. Exposure-Add according
to hazard For unprotected doors or win.
dows in side walls, If exposed, according to
hazard.
Occupancy.-For each mercantile occupant
over one. add at discretion of rating com
mittee. Charge for work done on the prem
ises. Charge for bad condition of premises
(Note.-For approved system automatic
sprinkler deduct 20 per cent from building
rate. and 20 per cent from stock rate) For
standard stand pipe and hose deduct 10 per
cent from building rate and per cent
from stock rate. For Waterman, with clock.
nights, Sundays and holidays. deduct )
cents from rate. For corner buildings
rrrs. sNr