National Board Of Fire Underwriters
What Does National Board Of Fire Underwriters Mean?
The National Board of Fire Underwriters was established in 1886 with the goal of preventing fire-related losses and protecting property and lives from fire hazards. The organization collected statistics from fire incidents across the United States to create a framework for fire insurance.
Insuranceopedia Explains National Board Of Fire Underwriters
This group is historically significant for establishing standards for fire coverage. It achieved this by gathering fire-related statistics from across the country and using the data to determine premium charges and coverage.
The group also classified property and its use, such as residential or commercial property, a method still employed by companies today, as different types of property (and their uses) carry distinct inherent risks.
In the mid-1960s, the board was absorbed by the American Insurance Association. By 1971, its program was transferred to the Insurance Services Office, which became responsible for calculating insurance rates.
