Evening star., 1957-04-30

Cne amount covers increased
building costs. Coverage which
was adequate when the insur-
Iance was written may be too low
after costs go UP and he is faced
with necessity of making repairs
or replacements after damage
from a fire or other causes.
There is still another point,
Insurance companies provide
new types of coverage which the
home owner may find more ad-
vantageous than what he is car
Irying. He should check with his
insurance man.
Cost of insurance varies with
the type Of house and whether
there is adequate fire protection.
Hence a brick house is insured
lat less cost than a frame house,
"A house in the District, where
the Fire Department is alert and
where fire plugs provide water
conveniently. costs less to insure
than a house in rural areas, dis
Itant from an adequate fire de-
Ipartment and sources of water.
Extended Coverage Usual
1t is customary to get fire and
extended coverage insurance.
This takes in damage from fire,
lightning. wind storms, riots, air.
craft and vehicles, and smoke
and smudge.
The cost for fire insurance
alone is 8 cents per 500, for
Iextended coverage. another 8
cents. The holder of a mortgage
on your house probably will
Istipulate that both be obtained.
You may believe you can get
along without the extended COW
erage. But let a hurricane or
tornado come along and blow
down the chimney. or topple a
tree onto a porch. and it may be
found this is an expensive
economy.
1t should be realized, also. that
what the insurance company
pays for If damage occurs is the
actual cash value of the dam
aged property. That is the value
Iat the time of the loss. which is
the value Of new construction
minus depreciation. 1t means
that if you have a fire and have
to replace woodwork and plaster
ing. and repaint and repaper, the
bill is going to come to more
than the insurance company is
liable for.
Here is where a new insurance
development comes in. 1t is
known as coverage for "all ply
Isical loss" In this area it is re-
ferred to as the special dwelling
form" 1t has been approved by
the insurance authorities of the
District. Maryland and Virginia.
Most insurance companies write
lit.
Covers Replacement
This form will cover the actual
cost OF replacement without any
ID eduction for depreciation
There is a proviso that the
amount Of insurance at the time
of loss is equal to at least 80
per cent Of the full replacement
cost, subject. of course. to the
limit of liability of the policy
There are also other advantages
The cost Of this is another 8
cents. bringing the total for fire
and extended coverage and the
special dwelling" coverage to 25
cents per 500. That is SIS for
a $4,000 worth of coverage. The
cost for three years is two and
a half times the annual cost. OF
s62.50. For five years the cost
is four times the annual cost
or 500.
The homeowner, in providinp
fun coverage. will not try tc
cover the property at its fully
appraised value. There is nc
treason. for instance, in covering
the value Of the lot, the value
due to the excavation for the
cellar. the value OF the under
ground utilities or the founda-
ton footings.
Goods Should Be Insured
The prudent home owner will
also insure his furniture and
other household goods. You can
buy this insurance pretty close
to the actual value. but not the
replacement value. The basic
cost per year for fire and ex-
tended coverage is 81 cents per