FIRE LOSSES.

Otago Daily Times, Issue 20484, 11 August 1928, Page 9

FIRE LOSSES.

TO THE EDITOR. SIK,— Addressing shareholders in the New Zealand insurance Company, Mi Horton refers, rather helplessly, to the Dominion’s “ deplorable ” tire losses. Business men will agree that insurance companies frequently have themselves to blame—they systematically over-insure. For example, the writer purchased a property for £1‘250. The section value was £BOO, and the house was insured for £BOO also. Two years later he purchased another for £BSO, the section value hero being £750 and the house insurance £SOO It is obvious that the over-insurance in one case is 100 per cent., and in the other much more. These properties are a fair sample of the older type of house of which there are thousands in this city. Mr Horton’s bright idea is police inquire into the circumstances of every lire. The writer suggests that insurance companies write sound business only, and by so doing reduce losses, increase profits, and bring about a much-needed cut in the high ruling rites. Remove the opportunity to profit by fire, and incendiarism must rapidlv decrease.---I. am, etc., SeU’-HEU'.