The Washington times., 1930-08-29
FIRE INSURANCE
SAFEGUARD
Of CREDIT
By FRANK LOOMS

It is estimated that there Is a
total fire insurance coverage Of
approximately $3.50. .O00, ,O00, 900 In
the United States. This means
that II fire insurance did not exist
only a small proportion Of this
sum would be released by the pub
lie for investment purposes.
It means further that much
wealth is freed to do a hard days
work for America. This is one Of
the secrets Of American prosperity.
Fire insurance is q vast and i'm
portant public service. Without
it the credit of the nations busi-
ness could not be sustained as 1t
is today. @
But again this freeing of re.
sources is not the only function Of
fire insurance. There is the &C.
tive working use of fire insurance
which is witnessed in something
like a million cases every year
With direct business effect In the
payment of individual losses.
Fire Takes Big Toll
Almost a half million dollars in
property values is the annual toll
of fire in the United States, ac-
cording to figures compiled by The
National Board of Fire Under
writerS-a loss that would wipe
out a vast number of homes and
businesses were it not for insur-
ance settlements making recon
struction possible.
During July, 1880, the reported
estimated fire loss for that month
only was $34,847, $50 and the total
loss for the first seven months of
this year is estimated at $277, ,187,-
521. There are innumerable cases
in which Solvency has been main
tanned solely through the reirn-
burSement by fire insurance CON-
panieS and the business enabled
to continue as a contributor to
prosperity. IL
Care I'm Selection
just as much care should be
used in selecting the fire insur-
ance company that carries the
risk on your property as in the
selection of q life insurance COM
pany. Few men, however. can
name the life insurance company
with whom they are insured, but
not one out of ten can remember
the company that is carrying
their fire insurance.
The best kind of policy is Is
sued by the type of fire insurance
companies compelled by law to
maintain capital. surplus and re-
serves, sufficient to protect their
policy commitments. They are
sound stock companies, members
of the National Board of Fire
Underwriters. the greatest public
service organization supported by
any industry and probably the
oldest and strongest association
in the country. 1t comprises 252
stock companies,
In policies, issued by these COM
panies, the cost is definitely
stated. You pay the stipulated
premium, and that is all, and if
you should have a loss, you re-
ceive full indemnity up to the
amount of the policy.
The stock fire insurance COM
panies materially benefit the pub
lie by providing for all the pro-
lection needed. and maintaining
its stability; they make it posi-
BILE to transfer risk to response
BILE carriers. Through the Ma.
tional Board of Fire Underwrit-
ers. they also furnish a fire pre-
vention service to the country
at large that greatly enhances
the safety of life and property
and helps to bring about reduc-
tions in fire insurance rates,
which follow the ratio of loss
costs.
Rate Decreased
The engineering staff Of the
National Board of Fire Under
writer's has Systematically sur
Veyed more than 400 cities. many
of them several times. The i'm
provements in water supply, fire
alarm systems, fire departments
and safety ordinances advocated
and foStered by stock fire insur-
ance companies have been q
great benefit, and a decided fac
tor in the consistent reductions
in the average rate Of fire in
surance. The average insurance
rate has declined during the past
10 years from $1.04 for each $500
of insurance coverage outStand-
ing to 81 cents. when conditions
have materially advanced the
price of all other necessities.
Fire insurance is one of the
cheapest of all necessities today.