COLLECTING
A man may insure in a dozen life insurance companies, and each must pay the amount of the policy on his death, but not so with fire companies.
A man owning a house worth, say ten thousand dollars, can insure it in ten companies, each taking a risk of eight thousand dollars.
If this house burns down the man does not receive eighty thousand dollars. The actual loss is calculated and the companies divide it up, each paying its part.
Fire companies, while anxious to issue policies on every insurable house, are more than willing that their business rivals should do the same, as in the event of fire the burden of loss will not be borne by one.
After every fire the company's agent examines the damage and estimates what is saved. On this the payment is based.
INSURABLE PROPERTY
A building is classed as real estate, but personal property is just as liable to be destroyed by fire.
Fire policies can be secured on goods, furniture, machinery, live stock and other things, and the method is about the same as where buildings are insured, but as a rule the premiums are higher, for such things are apt to be ruined by smoke and water, when the building in which they are stored may not be much injured.