Alsop Process Co. v. Continental Insurance

Plaintiff’s action is based on a policy of fire insurance for $1250, and it obtained judgment in the trial court for the full amount.

The policy contained a provision called a “Reduced Rate Agreement. ” It is as follows:

“In consideration of the reduced rate of premium charged for this policy it is hereby mutually understood and agreed that this company shall, in ease of loss or damage, be liable for such portion only of the loss or damage as the amount insured by this policy shall bear to the actual .cash value of the property covered by this policy at the time of the fire. Provided, however,…