committee which undertook the work aimed "to secure a rate on which the fire cost of the past five years per $100 of insurance would result in such percentage of the premium as, with an allowance for proper expenses, and, also, for accumulation for periodical and inevitable sweeping fires or conflagrations, would leave a margin for a moderate profit not exceeding five per cent." The "basis rate" being fixed at 25 cents, the first step in the process of rate-making is to determine the rate on a standard building in the given city. This is done by adding charges to the 25-cent, rate for special hazards of the city in which the property is located. Thus, to illustrate, if the town has no fire department, an addition of 32 cents is made to the 25-cent rate. If there is no building law, the extra charge for this item is 3 cents; while if there is danger of sweeping fires from outlying exposures, such as extensive lumber districts, the charge is 5 cents. In all, some thirtyone deficiencies of the city are provided for in the schedule. Deductions from the original 25-cent rate are permitted, however, for certain exceptionally good features of the city. After all such additions and deductions have been made, the result is the basis rate for a standard building in the given city. This rate, the "key rate," as it is designated in the schedule, is then used as the starting point for rating all buildings in the city. Variations from the Standard.--But most buildings will not measure up to the standard building, and further additions must, therefore, be made to the "key rate" for any deficiencies which may be found. If, for example, the walls have an average thickness of less than twelve inches, a charge of not less than 8 cents is added to the rate. If the roof is a shingled one, 15 cents is added, while for a slate roof the addition is only 2 cents. For wooden ceilings not less than 5 cents is added for one story and 3 cents for each additional story. Numerous other charges, all carefully specified in the schedule, are added for excessive area and height of the building, for poorly constructed floors, elevator shafts, stairways, and skylights, for the presence of merchandise above the seventh floor, for conditions such as narrow streets and overhead wires which may interfere with the fire department, for dangerous methods of lighting, and for the additional risk involved where a dwelling contains a large number of tenants or workmen. From the rate thus obtained deductions are next made for exceptional features in the construction of the building. The rate as it now stands is for the "building unoccupied" that is to say, no allowance has been made for the contents of the building or the particular use to which the building is put. But we have seen that there is an inherent connection, as regards the fire hazard, between the building and the contents it contains or the use to which it is put. Consequently we must add something to the building rate as it now stands to allow for this factor. If the building is a retail drug store, the rate as determined up to this point is increased by 10 per cent, but if it is used as a cotton gin, by 350 per cent. Charges for about 1,400 different occupancies are provided by the schedule, as illustrated by the figures in column I of the following sample page (page 196) of the "occupancy table." After the proper charge has been added for the "occupancy," the result is the "rate of the building occupied." From the rate of the building as now determined, deductions are next made for nearness to hydrants and for the presence, if any, of special private fire appliances, such as internal standpipes, an auxiliary private fire plant, an automatic fire-alarm system, etc. The result is the "rate of the building occupied, but unexposed." We saw, however, that a very important factor in rate-making is the environment surrounding the building, and the company must next add a charge for this factor according to the hazard. From the SAMPLE PAGE OF OCCUPANCY TABLE RULE. From the rate of Building occupied, No. 128, deduct one fourth of the deficiencies and then add the figure named in the second column of the table for the stock to be rated, proceeding with deductions Nos. 190, 191, etc., as per rating slip. ANALYSIS NO. No. CHARGES FOR OCCUPANCY NOTE.-Where stocks are entered in two different places, alphabetically, the reference in each to the other is intended to prevent oversight in case of subsequent revisions of the table, so as to insure that if a rate be changed in one place it shall be in all. For example, Chinese and Japanese goods are entered under both C and J, with a reference in each place to the other. Only one number, however, is assigned to both titles for Fire Cost Analysis. 400 Academies and Private Schools on upper floors of mercantile buildings, in cities Seminaries in cities. 401 402 66 66 country. Adze Manuf'y (see Hardware Manuf'y) Manuf'y' Steam Power 200 50 Add for any exposure 2 by 408 Alarms, Fire, Burglar, Annunciators, etc., 66 If included in Drug Stock, covered by Ale Houses (see Saloons). 412 413 414 415 b Almshouses, brick (see also Poor Houses) Ammunition, fixed, Manuf’y (see Cart. Manuf’y, 418 Anchors, Anvils... 150 1 See specific Schedule for class, pending preparation of which these rates on Manufacturing and Special Hazard Risks tentative only. 2 By which is meant a charge according to the facts. If the Boiler Room, for example, is fireproof or so thoroughly isolated that it could do no damage, no charge should be made to other portions of a risk, |