The Washington times., 1919-04-30
REINSURANCE
IS FORCED BY
HIGHPRICES
Public Compelled to Take Out
Larger Policies to Protect
Selves Adequately.
By BILL PRICE.

Revision OF FIRE insurance policies
to cover the Increased valuations of
buildings and machinery is a topic
of widespread interest among al
classes Of people in Washington To-
day. This is especially true as to
owners OF homes and as to those VIII
are contemplating new construction
to meet the demands so urgent in
this city for new homes, apartments
etc.
Every man expecting to enter upon
new construction has taken into con-
stderation that for his own protection
he must put upon the building fra
insurance at least so per cent great
Sr than would have been the case
when the cost Of construction was
fully 80 per cent less than today.
On other words. the wars changes
resulting in depreciation in the pur-
chasing power Of a dollar, has
brought aprpeciation in the value OF
all buildings. and the produent owner,
recognizing this increased value, will
M doubt take steps to protect himself
against loss
Real estate men Of washington
have long had this problem before
them In handling sales OF property,
and their advice to clients has been
to insure their properties to a greater
extent than IN the past, because they
could not be replaced today for any
thing near the costs of q few years
back or with insurance from policies |
that have heretofore covered the |
properties.
Trade Beard COnsidering It
The Board OF Trade has been con-
sidering this question for some time
through its insurance committee, |
ness men, builders, and others. Ralph |
Lee Sc chairman Of the committee, |
and Harry +. Almond, secretary. |
samuel J. Prescott. a live member OF
the committse. believing that the |
public shoulssbe fully apprised Of the
change in conditions has written q /
letter to President Walter A. Brown, |
OF the board. again calling Rtten- /
tion TO the Importance Of the matter 4
and advisabllity Of action.
Frequently called IN as an apprsis-
er In properties damaged or destroy
ed by fire. Mr.. Prescott tells Presi-
dent Brown that he has found many
cases where the assuered failed to
carry adequate insurance to cover
the Increased cost Of construction
and repair.
Building construction has increased
g to 80 per cent, Mr.. Prescott says,
1
not increased their insurance.
The Board of Trade insurance COM
smfttee, in considering the subject
lheretofore, has approached it care
fully through q desire not to give an
impression Of advertising insurance
Representatives or Of urging the pub
. lie to q definite line OF action A
strong impression has prevailed,
though cespite advantages, II any,
- ]
advisory publicity by the board or of
possible criticism, the public should
fave emphasized to it the chances 1t
may be taking in not fully under
standing the increased values Of i'm
proved real estate. |,
Brief Notices Sent.
Insurance men, in communications
70 clients as to renewals upon insur-
anee, have sent brief notices limiting
as 70 the advisability of revaluation
Of buildings and replacement cost or
other property, especially machinery.
Fire insurance companies, II is
stated by their representatives in
Washington, fully recognize the in
creased value Of buildings. owing to
the costs OF material labor, and
other items entering into new con-
struction and will accept additional
insurance. Agents advise the public,
however, that before acting to in
crease insurance they should consult
builders or friends who understand
values and the appreciation in build 6
ings. AS a general rule, however, any 7
building not depreciating too greatly I
from age Is worth not less than 80 2
per cent more today than three years q
ago. c
The insurance companies are dis | Z
posed TO recognize present-day values, c
but IN all revision Of policies owners
Of property should have some correct :
idea of what reconstruction would
cost that they may be guided properly
n handling their insurance.
Life Insurance Problem
Although the life insurance prob
lem does not enter so clearly into re-
adjustment problems as that of fire
insurance, IL Is still one that many
men and women in Washington are
The man who carried
SO, 900 life insurance for his family
before the war upset the economic
machinery Of the world Is faced by
The fact that the $4,000 would be
worth not much over half that sum
With the pteseat purchasing power Of
HoTTar