The Eeo,l,tyBtue Booh of Csklomin

EMILE E. KAEN
vice Piettuldt
Catilornia ReaI EEtatE A$aciatiatu
Satu Er@tcisco
M efubar E d,itorial Camhitlee
Realt! Rtue Baok
va The nealt! Blue Book ol Ctllilornia,

Insuranceas Relatcd to Real ltstate

B.t/ ENrLE E- KArr^-

Insure,tLLe(LPux't of Broket s Sertice,Nen FriennF tLrltl

\" e1o Cliettts Rcnt Innhotce Btuhr/$ I)1tl.l tu Pl otct:t
I nsu.rebleInterest L?6e I sltiu ? Coiitt?lcnt Mtultge-
rtent-Most Cani"()ti-s Lib(t al Na Loil!t?.t( Hn ei lor

HE insurancc departnert oi a r'eal estate office is as necessary

to its existencc and prosp€r'itx as its rcnting, leasing or account-
jng depar1merts. u hjch are rll neccssar')'adjuDcts of thc main
business of but ing and sellirg propertt' for clicnts- 'fhe real estate
bmker, ll'ho nler.el)' looks to his client to par- hinl r (:ommission for
the mere Durchaseor sale of lealt]', nevel gcts Ixr. It is a dutx of th€
Ieal estzrtebr'oker to nttcnd 10 nll ol the alJairs of u client as legar.ds
his real cstate holdirgs. One oI l.he nost ilnportaDt factors of his
holdings is his insurance. tst'h:1ving a conplehensivc illsurancc de-
pmtmeDt in connection with youl r'cal estate busiress, placed in
charge ol specialists ir their lir1e, you give to )'out clients the rnost
completeselrjce tossjble.

A pARTor, EnoI{ER'ssDRvIcD
TNSURANCE
It is not necessaly fol nr€ i.o tell you how nnpor.tnnt it is upon the
sale of a pieceof proDeltv. o| the pulchaseof a picce of propetty, to
sec thnt:t11 insularce Doli.). is ploper'l-v:rssigned to the new owrer.;
thnt llropcl endor'scnrcrrtsrre cor.r'ectltrrrndc :rnd pr'operly executed;
to see that the insur':rnce:tcturlly covers the plopert)' it is htcnded to
|:over;to se€thnt the i dennity clnusesarc corr.cct;to sec that -voul
client, ir fact, is protcctcd ag.linst nn-! finnD(ial loss. dLre to any
caiastlophe.
Not m.ry leal estate tr:Lnsactions ale ellected unless a lien of
somc ldDd is ploclrred. If thcre is r moltgag€ or1 the pr.opcrtv, the
bank oI the peNon lending the noney is €rltiUed to the ilst lecovery
due to nny irsulable loss. If vouf clieDl'sjnsulance is not plopefly
attended to, is not place.l rvith comDariesth:rt are responsible Ior their
losses,the covelage is rot {hat it should be; and iJ a fr'c. or an carth-
quakc, oI sorneothel disturbance or catastroDheshonld take place, the
saviDgs thal J,our (lient nrighl have takelr yeals to accurnulate nlay
go up in smoke, or crumble avat.. His pmpert] is taken from him by
the bank, and he is left destitute.
 The Realt! Blue Book of Caltforn l, t79

NEW 'RIENDS AND NEW' CLIENTS

A broker is derelict in'his duties torffard his pr.inciDalif his insur-
ance.depai.l,mentdoes not examine, carefuliy a.nd knowingly, all the
policies that may.be rpquired for proper prote.tion. Thatbianch of
Ine set'v,cpts tutty and equally as important as the branch that
attends to the correctness of the title. your duty to your client is not
fulfilledupon handing him rhp deedto his newty arquircd holdins. you
must sea that uhe funds whi(h he has investedin lhe prooeriv are
lqliy prolecled by rnsurance. ltoj.e lripnds and ne,,l clienis cin le
made for_your office by the prompt attention and quick set ement
ol insuredlosseqlhan in any ol her \^ay I know of. yourclipnI nalur_
ally looks to you to attcnd to thesp matrers for him, in the event oI a
losslespec;allyif he has sufficienq(onfiden.Fin you lo buv a pronprtv
lhat you havc recommendpdfot. his Durchas€.
RENTINSURANCE
- . A great many holders of real estate depend aimost entirely for
their incomp upon the rents of property which they own. Are you
oorng Juslrce to youl cttent ,*hen you neglect to prorect, as lar as
reasonable common sense will demand, this income. which means
bread and butter to him? There are very few teal estate brokers, to
my knowledge, who have recommended as stricfly as we have to our
clients "Rent Insurance." This insurance, as you are well aware, pays
the client for his loss of rents due to a ire. Ii his premises are burnt
to an appreciable extent, his rent income is natura t alecr€asealaccord-
ingly. He still has to meet the interest on his loan, his taxes, his upkeep
expenses,and many other items that amount to considerable money_,
not.counting his necessary living costs. If his property is protected
against a loss of this kind, he will have no difficuliy in me;ting the
vaxious _paj.ments I have just referred to. I personally can noi see
how a client of the kind I have just referred to can afloral to own in-
com€ property without the protection of,,Rent Insurance.,' I think
it ;s one of the most important transactions of a real estate dealer,
and the cost of the same is so nominal that no property owner can
aftord to do wjlhoul- jt. From my experienccaurillg and after.the
firc of 1906.I could cite a great many caspsof lhe kjnd ihat I have
jusl referred 10 that occurredin my own of6ce; and thc fact that we
hada lloroughlt orgrnized insutalr.pdppar.tment.and wer.aindefat_
lgaDlern.our eiorls_io prolarl thp inLercstsof our clients.earned us
me.Lrn0yrng gralltude ot a greal many propertyownersdoing busjnpss
mrn us.
BROKER'S DUTYTO PROTECA INSURABLE INTEREST
"Things done by halves are never done well.', A broker. would
never lhink of selllng a piece ol propert] unlpssrhp litle had bpen
thoroughlysFarchedand lound in order. and a titlF insurancepolicy
issnedon the same; or, in places where no title insurance comfanie"s
exist. that the abstra.l has been properly spar.chcd. why shouid yoLr
tllrnk 01 completingany real estale rransa(Lionwithout inquiring ro
Beeif the insufable inl erestsof your .lipn r s wer.eI horoughly:prop;rly
ano securetytaken care of /
Real estate and insllrance have always, and 1vill always go hard
180 TheRea,l,tu
Blue Bookol Cwworaia

iD hand. A satisfied client is the best asset, and in order to satisfy

him in completing a real estate transaction for him, you must seethat
the insurance pertaining to that transaction is a.lsocompleted before
acceptingyour commission,
LEASE INSURANCE
There is anotheritem that may or shouldprove of great interest
to realtors. It is that of "Lease Insurance." An owner can now be
insureal for loss of rent from any cause whatsoever for q'hich the
tenant or tenants are legally liable according to the terms of the
written lease; loss by fu'e excepted. This exceptionas refeHed to
abovecao be cover€dby "Rent Insurance." I have come a$oss a
great many realtors who knew absolutelynothing of this kind of
insuranceuntil I mentionedthe subjectto then.
COMPETENTMANACEMENT
Attention to detail, knowledgeof ihe respectiveduties,courtesy
to clients, and an interest in your work, will result not only in ad-
vancementof the business,but alsoto the material advantageof both
employers a,ndemployees.
I cannotemphasizetoo strongly the importanceof having compe-
tent people in charge of the insurance department. All fonns, de-
scriptions, and in fact aU details pertaining to same,should be in per-
fect order; careful attention given to expirations and renewals. As a
man depends upon the services of sp€cialists and compeient doctors
for his physical well-being, so should the same atte[tion analcare be
given fo! the proper attention and maintenance of the property
handlealfor clients. As the ownersselecius for suchservice,let us at
least be as sircere in ihe administrationof the trust imDosealuDonus
as we expectthe physicianor specialistto do the right thing when we
selecthim to protect our bodies.
A general sur1]ming up of the situation easily shows that the
insurance departmeni of a real estate office is one of its Derrnarent
and pertinenr lactors; that as much atrention shouldbe Eiv:enlo that
as jo any olher branch:1halrhe managemenr of sane sh-ould
bc mosl
thorough, competent and reliable, and should be conducted by one
who thoroughly understandsthe insurancebusiness.as it is one of
the brsncheswhere strict attention to detail, no matter how small. is
mostimpodanl.
MOST COMPANIES LIBMAL
I would be remissin my duties if I did not speaka few words in
commendationof the liberal way most of the fire iDsurancecompanies
act in their settlements. My experiencein insurancedatesback from
1879.and I havebeenal i(, direcllyor indirectly.ever since. Beins
practicallyuut of business ar i he prescnl1ime,I havpno axe lo grjnd,
but must say rhat in my tong experienceI have come acrossmany
instaDles where the adjusters of 6re insurance compades materiallt
sttetched points on behalf of the assured. Policies written by incom-
petenrs.who carpdonly for theiI measlylitlle commjssion, did not
cover, in many instances, .the property destroyd; endorsements,st
times, were def€ctive; in orher instances,the pady intended to be
 Tke Reolt! Btue Booh of C&tritomia 181

insured was some one else; and in all oJ the casesI have in mind,
where, if the claims had been litigated they lvould have resulted in
non-suits,the companiesinvariably paid when they found that the
insured'washonest analsincere,and the fault the result of ignorance
on the part of the broker.
NO LONOERA HA\,'EN IO& FAIIU&ES
There was a time v.hen :r man who made a failure ol any- busi-
ness he mighi have been engaged in tumed, as a last resort, to what
he called the profession ( ?) of insurance and real estate broker.
For{unately, through the course of evolution, and with the assistance
of the Great Reaper, the incompetents are being eliminated, and the
reyrartl from now on will have to be won with our spum. The mar
'who fonnerly depended on his friends and relatives for business in
these lines is now obselete,anal the interrogation mark which follows
the word "profession" above quoted, is now sent into the discard.