Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1894-01-25
Frre insurance.

The Vermont Mutual Fire Insurance
company of Montpelier has begun a very
thorough, systematic inspection and re-
vision OF all its hive hundred policies in
the town of Randolph. This is part of a
general system OF selection and inspection
Of its risks, commenced about four years
ago, and which has resulted in materially
benefitting the mass of Its policy holders
by furnishing them good Insurance at a
comparatively low cost. The last two years,
its assessments have been less than at any
time since 1883, while stock companies
rates have materially advanced in the same
time. Two Years ago, the rate OF stock
companies on farm property was Sl.00 per
slOO for i've years; While to-day, all COM
panies writing paid-up policies charge
sl.OO per year or 200 for three years per
el00. Statistics snow that in 1892, the val-
ue OF property destroyed in Vermont
amounted TO a million dollars, and insur-
ance companies paid over -700,000. Ii is
generally understood that when the fig
ures are complied for 1893, they will show
still greater loss. OF all the property in
sured in Vermont, the Vermont Mutual
carries about one quarter,and that amount
has materially increased during the past
year. Over one-tnird OF all the property
inspected in the farming districts OF other
towns has been cancelled by the Mutual
as undesirable, they retaining only the
best; and the record of this town since
1876 is not such as TO indicate that they
will use the knife less here. They have re-
ceived from the town net income of
so, ,4x2.9s, while their losses in the same
time paid in the town have been si5, AGO Is;
and other sections of the State complain
with good reason of the drain here. In
their inspections through the State, they
have visited six thousand risks, largely
farm risks, ana about one-third of them
have been dropped Us undesirable or been
reouced in amount and required to be i'm
proved as regards chimneys and stove
pipes. Those towns have been taken where
the losses have been the largest as COM
pared with income, and a material i'm
proyement is at once seen in those Iocali-
ties. We trust thai this may be the case
here, as we feel that our town is losing too
large an amount of property in this way
As last as this inspection is made by them,
their policies become practically "valueu
policies as the directors vote that il
property is burned after amounts have
been fixed by their inspectors, to pay the
full amount of insurance on the buildings,
without question, during the life OF those
policies. This is certainly move in the
right direction, as we believe that the
time to Fix the amount to be paid Is before
the fire occurs, not afte.. This is the only
company doing this IN the State. Many
policy holders in our vicinity naturally
feel sggrieved at the conservative valua-
tAOAe AOA " lnt cElilik NdluCcs OQl
this seems the only course to pursue. We
think, with them, that no company has
The right, morally or otherwise, to hold 4
the temptation before the people OF being I
able to realize as much money from in
surance as can be realized by a sale of the 1
property. Their Special Agent, when 4
dealing with farm property ascertains as /
closely as may be y hat the selling value +
OF the different farms is, by comparing it I
with his list Of all the actual sales which \
have occurred in the town in the past i
five years, weighing IL carefully, compar-
lag with the listers appraisal, often f1nd-
ing fair estimate of selling value to be
much less than the insurances on the
buildings are. Then by ascertaining as
closely as may be what the land would be
worth without the buildings, the princi-
pie OF the Company is never TO exceed the
difference between the two. This often
brings the amount OF the insurance down
one- half, sometimes three fourths. IL
here is any doubt as to the amounts OF
Insurance to be left, the agent takes the
,afe couise of making them too low rather
Ihan too high; then il the polisy holder
eeis aggrieved, he is at liberty TO 90 TO
)ther companies. We understand that
1ther companies are standing By the prin-
,iple and instructing their agents not to
lccept any policies on terms different
rom those offered by this inspection, ow-
Dg to having taken up number of scch
n other parts OF The State and having
hem 10 pay for. The Vermont Mutual
lave a list oi about $4,000 insurances
which have been cancelled as undesirable
" them, in the past few years, and which
lave been burned since cancellation and
AVE been paid for by other companies
which were not so careful as to accepting !
hem. This shows good saving to place
pposite the expense account in their re :
'orts. We think the system must result
D decrease OF the fires to quite an ex-
ent, II II is persisted in. Al least, this g
rinciple has the effect Of largely increas-
ng the size OF the company, they having
ad offerings of a much larger number of !
during the past two years than 4
yer before IN their sixty-six years of busi
ess, ano il has never oeen so well select
d. nor has so much business been rejected !.
the home office of the company. Their
Tstem OF inspection, Selection and Pro- : :
sction' commences itself to all fair mind !
I and unpreludiced people, except, per =
aps, the ones whose Toes are trodden on =
y the changes made.