The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-08-11
FIRE INSURANCE RATES
INCREASE HERE MAY AMOUNT TO
ABOUT TWENTY PER CENT.
Action of Board of Governors of West
ern Insurance Union-Thc
New Schedule.

The thoughts of mercantile and insurance
men and owners OF mercantile buildings in
this city were yesterday principally upon
the action taken by the board of governors
of the Western Insurance Union relative
to the reimbursement of insurance rates in
this city. Each one was wondering in what
manner and to what extent the change
would affect his interests, but the data
upon which to make a comparison was SO
meager that few were able to arrive at any
reasonable conclusion.
The matter will soon be settled for all,
as T. NJ Goodloe, the manager of the In
dianapolis inspection bureau, will at once
go to work upon the rerating of buildings
and risks on South Meridian street, after
which another conference will be held with
the board and the final action taken.
The schedule which it is proposed to put
into effect, and which by the action of the
Insurance Union is practically in effect
now, is the same as the schedule used in
Chicago for mercantile and special hazards.
1t is stated that the rerating of the South
Meridian-street properties may show that
the schedule will not be applicable to the
risks here, making them too high, i'm which
case the schedule will not be adopted for
the general governing of risks here. 1t is
also stated that In the opinion of Mr.. Good
loe and others connected with the insur-
ance bureau, who have made numerous in
vestigations, hat the probable change in
the rates will amount to about 20 per cent.
increase. When the rerating shall have
been finished it may, it is said, be found
49,. .o~,x - ~ x;.t,. x.,,tI - ror,or a., -o.o
than at present, but it is admitted that
there are few buildings here constructed
in such a manner as to permit under the
new schedule of a lower rating han at
present. The new schedule will include
everything except dwellings, churches ana
similar buildings.
The basis for the proposed schedule is a
model building, one which i'm its construc-
ton and location, together with the facili-
ties for fire protection and control. is con-
Sidered a high class risk. for which the rate
is placed at "a per 81, 900 value. The specifi-
cations of this model building describe the
height, the walls, the material, the manner
of construction, the passageways, the roof,
the basement. the wall openings, the ex-
posture and proximity to other risks. which
are described infinitely, the manner in
which windows are protected and the ia
cilities for fighting fire and many other
things.
The application of the schedule is by
making comparisons with the risk taken
and the specifications of the model building,
and setting down a special or extra charge
for variations such as increased height,
which I'm the schedule is given as: Fifth
story, D cents; sixth, 10 cents; seventh, Is
cents: eighth and each additional story %
cents; for increased area, additional OPEN
ings in side walls and into other buildings
and various other things so numerous that
a poorly-constructed building might run
up TO a prohibitive rate to a prospective
insurer. Even the matter of tenants and
the location of the various sorts of mer-
chandisc stocks are minutely described and
taken into consideration. Credits are also
given under the schedule for fire protection
In the building. A stand-pipe gives a credit
OF l cent for each story in height; an ap-
proved automatic fire alarm gives a credit
of 10 cents, and a Waterman with approved
service gives a credit of 5 cents. Superior
construction is a credit the use of which Is
altogether discretionary with the under
writer.
Insurance men are as a rule rather re-
luctant to talk freely of the matter. pre-
ferrins to reserve their say. All, however.
said the increase in the rates would cause
much complaint from patrons, and would
perhaps cause a reduction in the insurance
carried until they become accustomed To
the new conditions. Many of the insurance
men think the adoption of the Chicago
schedule in this city is unwarranted with
she prospective Improvement I'm the fire
protective service, the delay in which was
the cause of the increase.