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20 WINNETKA WEEKLY TALK, SATURDAY, MARCH 21, 1925 . m---- a-- -- - NEWS OF INTEREST IN REAL ESTATE AND BUILDING FIELDS " Your Insurance Edited By F. J. Budinger As a preface to our discussion of the various forms of insurance we will first state brieflv the basic principle of in- surance. The institution of insurance functions to mitigate loss. Accepting the fact that all matter is subject to destruction, that matter which has value that may be represented in terms of money, when destroyed suf- fers a loss to its owner which could he entirely or in part, compensated for. The god of destruction, whichever one that may be, is no respecter of persons but strangely and fortunately he operates with at least some regu- larity. This regularity is represented in what is known as the law of aver- ages. For instance, if you were to toss a penny in the air 1,000 times, 500 times it would come up heads and 500 times tails. Try it if you doubt this; 1,000 times. This regularity of certain happenings has been closely studied for centuries until today, for instance, we know that out of 1,000 men, 10 will die within one year. We know that if a man lives to the age of 35, he will probably live to about 67. We know that that is the way the average operates. Having these facts, insurance companies are able to fig- ure how much they must collect as a premium to pay the losses which they know they will have during the vear. So, stripping the business of all its technicalities, insurance simply means that Joe, John, Harry, Tom and Bill, each of whom owns an automo- bile will deposit in a sort of jack pot an amount the total of which will be sufficient to reimburse Joe or Bill for their loss if their cars are stolen or burned during the year. The insur- ance company acts as the holder of the jack-pot and administers the fund. For this service of handling the fin- ances there is of course a charge, just as the carpenter or the bricklayer makes a charge for his brawn and brains in building a house. Not Gambling Institution It should be very apparent now that an insurance company is not a legal- ized gambling institution, and that when you insure your automobile the amount of premium is not the stakes of a bet which they make if you don't lose your car during the year as a ~ result of fire or theft. Insurance prem- iums are figured out by somé of the keenest mathematicians in the coun- try, and the losses which insurance companies pay are anticipated. Furthermore, vou, I, and everyone else insured essentially contribute when a loss is paid. We're not assessed, be- cause we pay premiums in advance. It should also he clear now that when- ever an unjust claim is paid, the pol- icy-holders do the suffering, because rates are based on the losses. This is a point well to remember. The amount of a premium is directly pro- portionate to the hazard of the risk insured. If the rate is high, the prob- ability of loss is accordingly great, A man at the age of 50 will pay more for life insurance than will a man at the age of 20 simply because out of a given number of men more will die at 50 than at 20, and during the same length of time. Obviously the young- er will in all probability live longer than the man who has reached two score and ten. Assuming now that the least in- formed of our readers wil have enough of an idea of the principles of insur- ance to understand thoroughly the subjects we will discuss, we will dwell for a few moments on the subject of automobile, fire and theft insurance. Set Maximum Amount For the most part the Automobile, Fire and Theft policy, which, by the way, is one policy, is understood by the « assured. There is however one very important point which because of misunderstanding, has been the cause of much grief and ill-feeling on the part of the assured toward the mmsurance agent and the insurance company. We will explain this point by asking the question: If your car is totally destroyed tonight by fire, or is stolen and unrecovered, how much insurance can you collect? Most people have the idea that they can collect the face value of their policy. This is not the case. The face amount of your policy merely means that such amount is the maximum that the in- surance company will pay in the event of a loss. Your policy reads to mean that in the event of loss the insuring company will indemnify you accord- ing to your loss. It you suffer a total loss, you will collect as much as the automobile is worth at the time of the loss It is of course understood that in no case shall the indemnity paid be in excess of the face amount of your insurance policy. Unquestionably many automobile owners are carrying more Fire and Theft insurance than they could col- lect. To do so is of course spending money foolishly. The proper thing to do when insuring your automobile is to either have your agent appraise your car or have him find out from his company, the practical amount to carry. Explains Theft Feature Now about the theft end of this in- surance. The provisions covering theft are pretty generally understood except orehaps that the companies reserve, 1s a rule, at least 60 days within which time they may recover the automobile, and providing they return it in the same condition as it was at the time of the theft, they have fulfilled their part of the contract. This brings up another point: Even though you do not carry col- lision insurance, if your car is stolen and is damaged while out of your possession, by virtue of the provisions of your Fire and Theft Insurance pol- 'cy, the insuring company is liable for the amount of damage done. In any case where there is.a dispute as to the just amotint of settlement, the assured is privileged to appoint a person to represent himself, and the insurance' company will do likewise, and the two appointees will agree on a third party. The decision of two or more of this temporary board of ad- justers will be binding on both the company and the assured. Only in ex- treme cases is it necessary to carry a case to this limit. Is Very Practical Fire and Theft insurance is unques- tionably a very practical form of coverage and is the most popular auto- mobile insurance carried. It is by no means the most important however, and if an automobile owner does not feel that he can afford full coverage on his car, he should above all carry Public Liability and Property Dam- age insurance. In not doing so he is constantly exposed to financial dis- aster. Any owner of an automobile is subject to liability for any damage done to persons or their property. Public Liability insurance merely protects you against the costs arising from the imposition of liability upon you for an accident in which your automobile was the damaging agency. The policy covers the fees contingent on any claim against you and indem- nity for the amount of judgment ren- dered, if any, provided of course that in no case will the total costs exceed the face amount of the policy. Public Liability Automobile insurance is written in amounts ranging from $5,000 and $10,000 to the hundreds of thousands. Each policy calls for a minimum and a maximum limit as $5,000, $10,000, etc. This means that the limit of the company's liability in an accident involving one claimant is $5,000, and $10,000 where more than one person makes claim. Inasmuch as the disposition of the courts has been to render very heavy judgments, it is advisable to carry double limits: $10,- 000 to $20,000. The cost for this addi- tional coverage is very small. Defines Collision Policy Property Damage insurance insures you against the costs imposed for damage done to other peoples' prop- erty. The limit is stipulated in the policy. The ordinary amount is $1,000 or $2,000. Note that Property Dam- age insurance does not insure you for BONDS AND MORTGAGES Our many satisfied cus- tomers sell our securities for us. Years of efficient invest- ment service is our greatest asset. Ask for our Bond Circulars. RT® Mri University 285 Rogers Park 0272 ASK US TO SHOW YOU THIS WINNETKA HOME New 7 Room Brick and Stucco. 4 bedrooms, 2 baths, heated sun porch, hot water heat, 2 car heated garage, good location, near schools and transportation. Splendidly Built. Price $25,000 HILL & WHEELER, Inc. REALTORS "Homes for Particular People" WILMETTE OFFICE 334 Linden Avenue Tel. Wilmette 93 WINNETKA OFFICE 736 Elm Street Tel. Winnetka 142 damages to your own car. Collision insurance provides that the company shall be liable for the cost of damage done to your own automo- bile as a result of collision. What is known as a deductible form of Col- lision insurance is the policy most commonly written . The deductible amount ranges from=$50 to $106 as 'a pule. The greater the amount, the greater of course is the premium re- duction. The deductible form pro- vides that the company shall be liable only when the cost of damage done exceeds the deductible amount pro- vided for in the policy, and then their liability shall only be the difference between the actual loss and the de- ductible amount. 'In addition ite the forms of autonto- bile insurfhce we 'have: briefly ex- plained, insurance is written to cover 'heft of accessories, robes etc. Plate Glass insurance is also written for closed cars. The costs for this are very small. | PEELS ] We fully realize that we have only very briefly cqvered the field 'of Auto- mobile insurance but believe that we have touched on the high. points of interest. We encourage questions concerning Auto- mobile insurance which we will publish with the answer. From time to time we will refer to this class of insurance bringing out points which we believe will be of value as well as of interest. It would not be far from right to state that if you cannot afford Automobile insur- ance, particularly Public Liability, you cannot afford to own an automobile. On Sunday, March 29, it will be five years since our village was 'struck by the long-to-be-remembered TORNADO. Therefore, next week we will rather ap- propriately discuss the subject of Tor- n-do and Windstorm insurance. "NO MORE HOME THAN A RABBIT" E don't know who first used this expression, but it sounds as if he was talking about a rent payer. Let us show you how the rent money will buy you a comfortable home. GLENCOE REALTY COMPANY 665 Vernon Avenue Glencoe, IIL. Phone Glencoe 1158 FX TL LET LEE EE ELE LL LLY] SEEK MEANS TO LOWER HOME BUILDING COSTS A conference or more than 40 trade yrganizations and associations having to the home has been called by the Na- tional Association of Real Estate boards o meet in Chicago, March 21. The conference, the first of the kind ever to be assembled, will be made up of representatives of the allied industries which exhibit their products at Own Your Home expositions licensed by the Association. It will open the whole question of what can be done to improve the efficiency and lower the cost of Amer- ican .homes.. It will~also discuss how do- with:-the building and. furnishing of | best to educate the public as well as concractors and builders on sound home- building and on the enormous waste en- tailed by flimsy construction and bad planning. : The conference will shape plans for making Own-Your-Home-expositions in all-the larger-cities, institutes for visual- izing the advantages of home ownership and the means and the processes for creating a satisfactory home. WINDOW SHADES Cleaned or Replaced H. N. Blasius Co. Winnetka 1125 14 Prouty Annex as you should be represented. Phone Wil. 1750 Wilmette, Illinois . . 3 ' "Place your insurance with a local agency" Int the event of a loss we can be on 'the ground immediately. We are a Wilmette business in Wilmette to serve Wilmette. you are our neighbor we know you better and can represent you CLORE, BUDINGER & SMITH "Let us solve your insurance problems" eofeokodorbodochhoboboloRofododob bdo dob d Rob oRoRok dob ke dhkbdob kbd bbb bk bb bbb d EE IE re ea re EE RL LE LL ELLE Because Be certain of your! insurance. 1177 Wilmette Ave. Opposite Village Hall LET EIL LEI LLL LEE LLL EYL] inden Crest Apartments Linden Avenue and Fifth Street WILMETTE one your R. One of the Corridors in the Linden Crest Enjoy Wilmette its many advantages, without the care of a home. Close to schools, lake, harbor, golf, parks. block from and shopping center. inspection first and only apartment building. For Information call T. Davis, owner, Main 3012 or Wilmette 589 or see Janitor at Building | Linden Avenue and Fifth Street WILMETTE Only transportation We invite of Wilmette's Truth IS STRANGER THAN FICTION "Clean as the Sun's Heat" Sold and Recommended by: Winnetka 734 Is Even Better Than We Claim It To Be MORE HEAT - LESS COST - FEWER ASHES The man who orders a ton for trial reorders as a friend WE CAN CONVINCE YOU TOO Winnetka Coal-Lumber Co. A