Farmers' Mutual Fire Insurance v. Schaeffer

Citations

• 82 Md. 377
• 33 A. 728
• 1896 Md. LEXIS 16

Syllabus

<p>Fire Insurance — Mutual Company — Increase of Risk by Use of Steam Engine — Notice to Instirer.</p> <p>A policy of fire insurance in a mutual company covered certain farm buildings. On the day of the loss a portable engine was stationed about fifty feet from a bark mill and used for grinding bark. A clause of the policy provided that in the event of an engine being stationed on the premises, then the president of the company should appoint a committee of members to examine the same and ascertain if the risk was thereby increased, and if increased an additional premium note was to be given by the assured. More than two weeks before the fire, when the engine was not on his premises, the plaintiff notified the general agent of the company that he used an engine for the above mentioned purpose about once a month, and said that he was willing to do or pay anything necessary for the protection of his property. The agent made no definite reply and no additional premium note was demanded. Held, that if there was sufficient time after the notice and before the fire for the president of the company to ascertain through a committee whether the risk was increased by the use of the engine, and for the plaintiff to give an additional premium note if the risk was increased, then the policy was not avoided by the use of the engine, even if the risk was thereby increased.</p>