THE INSURANCE LOSSES

Press, Volume LXII, Issue 12507, 21 May 1906, Page 8

THE INSURANCE LOSSES

HOW THE CLAIMS WILL BE TREATED.

The Californian insurance law and decisions of the Courts provide:—First. Where an insured building is dectraved by an earthquake, fire insurance companies are not liable for any of the less. S-c.ml: Wlimv a.a b'£ured building is ty fire ixrsuitin;; from an oarthqiiiike, tile insurance companies aie l.able for tiie krs. Third: When an .r.iMn-wd buiiduig is dynamited to chock t'iii.- -nivad ot a coanacratioii. the insuranc-j companies are liable tor tho lot?, ji:k: as ir the property had been destroyed l>y hre. kStacenicntts made by the officers of several cf the laiiio American ccmpanicfi indieat-o that a hburaJ po'iicy -will bo adopted ai dealing -n-ith tho fire tni-fei-fiis, but in any it is extX'Cted that n gieat mat* cf litigation will jiiow i.t\u of the settlement of the vanon- rlaim.--. Willis O. P.odcl, secretary of the >ew York Lijard ci Fire uncK rwritore sai.l in to tho lxan on which would bj pa-.d: '-It a building -ivero completely cLernoliwhed by earfhquake, and tlu minis w.re sulit-equefiUly b'.irn.'d. tiv> ownor could recover no 111----siii\m'.c>. But- it the building -witketood lh> raitliqiuke shock and wa* subsc-q-.UMitly burned, then the ineuranco ojinpa.iiy would have to pay the loss canted l>y liro. In some buildirg-> h.-iv-j l-e-jn woak- ned by the earthquake, any.l their value consequently ':-,.ss ii.'«l before the lne d.htroved tht,-m. i-i cm- <;i" tiiac kind (settlement will probably bo mad.o by ecr.mpromi«?. But irfi.iv a" company ccu'.f! not show that a l)U.'.dii:s iv»6 mat-ria ly <laaiaged by the earthquake previous to the fire, it would Jiavj u> pay the full valuo of the policy. As to tho buildings dynamited, a spreial otartito cf California d,tw:s of t-hab qiKKtion. It provides tJiat v.-here a building is blown up by dynamite to pi event tho spread of fire, the in>uring cfrmpany has to Rtand tho k=6. The California Jiw is suprem? on that point. E. -H. A. Correa, vioe-presidr-nt of tha Home li-.suranee CJompany, fiaid: "Tha companies affected by tho disaster will adjpt a. uniform pel icy for t'no payment cf Icses. They Trill deal with the situation in the turoatb-t- pcraible spirit. There will be no quibbli.ng unless them is gan-iiiiie doubt of the legality of a claim." San Francisco hafi always been an anxiety to fire insuramee men, l.ecniiHj of it.• peculiar topegraphy and tin character o-f its buildin©?- It has brvn regarded as a g : gantic firetrap. A mrf?pago from states that tli"- insurance men there are- -worried t-6 a degree b-nrdcriiiE on a pa.n.ic. They b?:ipvi> th> less-ps to tha companies -""ill b? ultimately far greater in the San Francisco difurtor t'hau m t'hi> Cliica-go or Baltimore fires.