Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-05-28
INSURANCE Rates
WILL Be ADVANCED
UNDER new SYSTEM
Southern Kennebec Fire Insur-
ance Agents Meet Thursday
Afternoon at Hotel North and
Hear Rating System Ex-
planned

4 meeting Of the fire insurance
agents Of Southern Kennebec County
was held Thursday afternoon at Ho-
tel North to interview a committee
from the New England Exchange in
order 10 become familiar with the
schedule system Of rating. which is
soon TO be adopted in the jurisdiction
Of the Southern Kennebec underwrit-
ers F. ". Alden Of Waterville, chair
man Of the Southern kennebec coun-
~ committee Of the New England Ex-
change, explained the system very
fully to the agents present and a
thorough discussion followed.
This system has been decided upon
practically as follows:
During the last year, the fire in
surance interests have been engaged
in systematic inspection Of the
buildings of this city. The insuring
public will be interested to know that
with the data accumulated the mercan-
tile sections Of Augusta, HallowelI,
Gardiner and Randolph are soon to
be rated on a schedule basis, with a
view to producing a more systematic
rating, and also to bring about much
needed improvements in structural
conditions, and also a cleaner condi-
ton as TO rubbish in cellars, aIleyways
etc This system will affect all mer-
camille buildings.
The system Of rating is known as
the schedule system, which is used
almost wholly in the Middle and Wes-
tern States, and in many Of the larg-
-
Portland, Bangor. Biddeford and Saco.
Briefly stated, the system starts
with a key rate for a standard build
ing in the city to be rated. This key
or base rate, SO called, is determined
after a careful engineers survey Of
the city's water system. fire depart
ment, fire alarm service, topography of
the mercantile section, fire record, and
many other features that affect the
risks as whole.
Inspectors then make a careful in
spection Of each building. noting its
construction, exposure, defects and
good features from a fire point of
view, upkeep, cleanliness, etc. With
the information obtained, each risk is
then carefully analysed and the rate
built up from the key or base rate,
previously obtained, by charging for
each deviation from the standard
which the schedule defines. Open
areas, ways and vertical openings in
buildings are charged for, excess
areas, accumulation Of rubbish on
premises, ashes in wooden receptacles,
broken plastering, unsafe arrangement
~ 4rey tive nd or
features which experience has shown
contributes to the fire risk BY this
system each risk is penalized for its
own defects, and when the bad fea-
lures are corrected, the charges are
taken off.
The application Of this system will
produce an advance in the rates now
obtaining in these cities, but each
property owner has it in his power
to reduce his rate by making improve
ments in his property.
1t is significant fact that the larg-
est single charge for defects. under the
schedule rates, is the rubbish charge
which the inspectors found very gen.
eral in the mercantile buildings Of all
three cities. AS this is easily correct
ed, the owners and tenants will find 1t
financially to their advantage to at
once remedy this defect.
Under the new system the landlord
can now have his own particular prop
erty analysed and be told just what
reduction will be made for every i'm
provement, and can thereby figure out
in dollars and cents the advantage to
himself, as well as reducing the haz-
ards Of the city as a whole.
A competent, paid expert will reside
at Augusta to aid the property own
ers by advising them just how to
make the Improvements so as to COM
ply with the Underwriters standards.
His services will be rendered to the
public without charge.
At the close Of the meeting it was
the unanimous opinion Of the agents
to cordially support the rating COM
mittee.