The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-19
FIRE INSURANCE
RATESEXPLAIyED
BY LOCAL AGENT
False Impression Created
By Reports of Rate
Reduction, Said

Since the publication of report,
purporting to emauate from the South
eastern Underwriters association, re-
garding "A reduction in fire insurance
rates in Birniingham INSURANCE agents
have experienced considerable difficulty
in explaining the: exact status OF the
condition to the property owners OF
Birmingham. :
In an interview with II. g. Seibels.
president of the Birmingham Fire and
Casualty exchange. the following facts
were brought to light: First. accord
|. ing TO Mr. Seibels' statement, there
has not been a flat or general reduc-
ton in rates" Mr.. Seibels explained
that for the past 10 years Birmingham
has been divided into various. classifi-
cations, which has given different rates
for different sections. ~
49, Water Extensions ~
Continuing, Mr.. Seibels said, las wa
ter extensions have gradually been made
in. all parts of the city and fire pro
lection thereby increased, it has long
been seen. that the city or the outiy.
ing districts, were entitled to arerafi
ing. Some months ago the National
Board of Underwriters agreed to rerats
Birmingham and sent a corps of COM
petent engineers here to make the nee
essary inspections and adjustments OF
the tariff. This was the first change
in fire insurance rates in Birmingham
for about 10 years.
Consequently, said Mr.. Seibels
this rerating brought about reduc-
ton of rates in the city or the ohtly-
ing districts which heretofore did not
have adequate fire protection and at
the same time effected increases where
the fire hazard had been Increased
through changes in building or eondi-
tions which otherwise affect the appli'
cation of fire insurance rates
Mr.. Seibels stated that the public
| had been laboring under misappre-
| hension, thinking that in accordance
with the newspaper reports the latter
part of March which indicated that q
| is per cent reduction would be effec
tive as of January. 1924. in fire insur
| ance rates throughout the residential
section of the city. and that fire in
i surance agents had experienced consid
cradle difficulty in making satisfac
tory explanations to property owners
Urges Corrections
Therefore, he said 1T is neces
sary and right that these newspaper re
ports should be corrected" Mr.. Sci
bells emphasized the fact that prop
erty owners who would benefit, mos
| by this new rating are those who owl
property in the outlying districts ant
that these sections are now put, ON tn,
same basis as the downtown section
but that this would in no wise affec
any additional fire hazard which ma.
have occurred since the old rates wer
effective. He pointed out that the new
basis of rates should not be construe
as general reduction and that in som
instances rates would be increased
This increase being due entirely t
physical changes which may have in
creased the fire hazard.
THE fire insurance business sal
Mr.. Seibels, lis not generally under
stood by the public. l mean that tn
basis of arriving at rates is often cor
fusing to the average mind and it shout
be remembered that the agents do ne
make the rates, but are governed Ell
!. stireB bs the insurance tariff whic
, is applied under the supervision of a
organization maintained solely for TIL
purpose.
Mr.. Seibels stated that general az
. justment of rates was gradually beih
effected as rapidly as the entire OF
= CARNATIONS of the companies and III
derwriters associations could affect th
stupendous task and that the propert
owners would in every instance be give
the benefit of the very lowest possibl
rates according to the nature of the
property and its fire hazard