The Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1912-1917, 1916-08-15
HIGH INSURANCE RATE
Due To IGNORANCE
PROPERTY OWNERS AND MUNICH
PALITIES FAIL TO REALIZE
THIS.
Many Demand Reductions In Rates
Yet VIII Not Reduce Chances OF
Having Fires I'm Property.

Property owners and municipalities
apparently fail to realize that fire in
surance rates, under the new system
of schedule rating, are based upon
conditions as they exist, and can be
reduced if the hazards are lessened,
and should be raised when they are in
creased. Many property owners de-
mand reductions because they make
certain changes in their risks, not
recognizing the fact that these changes
frequently increase the fire hazards
more than they reduce them. A cur
rent case is that of a manufactures,
who oVerhauled his electric wiring,
which was in very bad condition, with
the understanding that he would re-
ceive a credit in rate for the improve
ment He did receive the credit, but
at the same time he installed a gaso-
line engine, involving the storage OF
gasoline on the premises, and intro
duced other serious hazards, the prop
er charge for which more than offset
his credit on electric wiring Because
the net result was an increase in his
rate, he promptly went on the war
path and broke into print with a vio-
lent attack on the insurance inter
ests, charging that, although he had
spent several hundred dollars in i'm
proving his risk, his rate had been
increased.
Sometimes Prejudiced.
Municipalities also are often guilty
of similar prejudice as regards fire
insurance rates. The average grow
ing town needs an additional engine
house and equipment every few years
merely to keep pace with the growth
in population and risk, the greater
congestion of hazards, the steady de-
preciation of buildings, and the wideT
territory to be covered. Yet many
towns demand a reduction in insur-
ance rates for a new engine house,
when it merely keeps peace with the
growth of the town and it's needs, in
wolves no improvement taking the
city as whole, and merely brin
it up to where it ought to have been
before.
No improvements.
Another failing of municipalities Is
to promise to make improvements in
water supply and fire protection and
demand a reduction in rates at once,
without waiting for the completion
of the improvements, which may re-
quire several years, if the vagarles
of local politics and finances ever
complete them. Some city officials
have peculiar ideas as to what they
should receive credits for Frequent
ly they have built d handsome new
engine house, taking the place of an
old and unsightly structure, and have
demanded a reduction in rates be
cause they have spent forty or fifty
thousand dollars on an ornate struc
ture, but without any betterment III
the fire protection. The change is
fine for the local contractors and poll
ticians and a municipal Improvement.
but handsome architecture, cut stone
trimmings and contractors graft are
no improvement in the fire fighting
facilities
Don't Realize Risks.
Many Gowns do not realize that
their condition is constantly deteri-
Grating from fire protection stand
point, as their buildings grow older,
their pumping engines wear out, their
hose becomes rotten and buildings de-
preciate through age. In fact, they
ought to be reduced to a poorer class
as regards fire protection, and i'm
provements are urgently needed in
order to preserve for them the credit
they already have in this regard. They
ignore this fact entirely, however.
and demand an Improvement in classi-
fcation, with a consequent reduction
in rates, for everything they do, in
stead of recognizing it as needed to
Justify the rates they already enjoy.
The fire insurance companies have
been very lenient in this matter and
have not penalized many towns which
on their merits, should have had their
rates increased, because the protec-
ton has not kept pace with the in
creasing hazards They are seldom
given credit for this, however, and as
in the case of the individual property
owner cited, municipalities are apt 10
demand credit for every improvement
they make, and to ignore entirely the
equally justifable charges for in
creased hazards.