Homeowners - The First Decade

The Homeowners policy completed its first decade of existence in 1960, the first multiple line dwelling package with an indivisible premium having been introduced in September of 1950. During this period, the Homeowners policy has grown at such a rapid rate that it now occupies an extremely important position in the industry. In the year 1960 companies wrote approximately three quarters of a billion dollars in premium countrywide? With a volume of these proportions, this policy is now an established part of the property insurance picture. It has revolutionized the business not only by its own fantastic growth but also by the precedents which it set and which are now being carried over into the commercial field. Because the policy is so well established, the birth pains connected with its early development tend to be overlooked. We propose, therefore, to retrace the history of the Homeowners policy with primary emphasis on rate making and to evaluate the original approaches and objections thereto in the light of subsequent experience.