Important Clauses

Notice what the policies say relative to "additional insurance," "removal of property" and "gasoline permit." as these are very important.

Standard Policy

The standard form of insurance policy most commonly used is that of the State of New-York, although a great many of the States have their own standard forms, and these are the only ones permitted within those States, and vary slightly from the New York standard policy.

One should he sure to obtain a copy of the policy under which one is insured, and study it carefully, as the time consumed may be time well spent, as would be demonstrated if a fire should occur.

The following is an article taken from a mercantile paper, and is well worth reading, as the responsibilities and obligations of the insured are just as important in a home as in a business enterprise.

The heading of this article is, "Some Facts About Your Insurance Policy. Responsibilities and Obligations of the Insured."

"It is probably no exaggeration to say that not one man in ten knows what a fire insurance policy really is.

"Nine men will say it is a promise by the insurance company to pay a certain agreed sum in case the insured property is damaged or destroyed by fire.

"The tenth man knows differently. He has read his policies. He knows that he must comply with certain conditions in order to make his policy good.

"He knows that if he fails to fulfil his part of the contract the insurance company can justly decline to pay his loss in case of a fire. Because "An insurance policy is merely a contract, binding on both parties. The company agrees to pay up to a certain amount in case of a fire, but only in consideration of the insured performing certain acts himself.

"It is quite important, then, that you read your policy. It is hedged about with technicalities, and imposes on you conditions which the courts have declared proper and legal. These conditions must be complied with, or the contract is at least voidable, if not void.

"There are at least seven vital points on which merchants should be informed with regard to fire insurance. They follow:

1. Get Your Insurance Only Through A Recording Agent

A 'recording agent' is one authorized to sign, issue and register policies. His acts bind the company. The acts or declarations of a mere solicitor do not bind the company. Therefore Bee that your pol-icies are issued by a recording agent. See That Your Policies Provide for Other Concurrent Insurance - Every policy of standard form prohibits you from carrying other insurance than that specified in the policy, unless you are given express permission to do so. If you write more than one policy, be careful to see that all of them provide that other insurance may he carried; otherwise any loss you may sustain can be refused payment by the companies.

3. Do You Understand The '80 Per Cent.' Clause?

This clause, for the use of which a reduced rate is given, means that you agree to carry insurance to the amount of at least 80 Per cent. of the value of the stock. If you fail to do so. you are held to be your own insurer to the amount of the difference. As an example :

"Suppose the value of your stock is $10,000. Under the 80 Per cent. clause you agree to carry at least $8,000 insurance. Suppose you really have only $5,000 insurance and suffer a $5,000 loss. You are short $3,000 in insurance, which is three-eighths of the amount you agreed to carry. Therefore, you must pay three-eighths of your own loss, and you can collect, not $5,000. but only five-eighths of $5,000, or $3,125. If the 80 Per cent. clause is in your policies, see that it is fully complied with.