There are in the United States about 2000 FARMERS' COOPERATIVE FIRE INSURANCE COMPANIES, carrying insurance amounting to more than 5 billion dollars. These companies are associations of farmers who elect their own directors and manage their own insurance business. They provide insurance at a much lower rate than the ordinary commercial insurance companies. A usual provision of the laws under which these cooperative companies operate is that no member may insure his property for its full value. His neighbors will help him bear his loss, but will not bear it all. This has the effect of causing him to exercise greater care to prevent fire on his premises. For this reason insurance does reduce the actual fire loss to some extent. Property may also be insured against loss from storm and flood.
Investigate and report on:
Fire losses in your community in a year.
Causes of fires in your community last year. Number that were preventable.
Precautions against fire in your home and school.
Fire preventive regulations in your community.
Cost of fire prevention in your community.
Improved means of fire prevention in country districts.
How fire insurance works.
Cooperative fire insurance companies in your state.