A recent series of fires in Camden may be a preview of what is to come as American cities continue to cut back on essential services. by Bill Gee
(centrist)
Wednesday, June 29, 2011
Earlier this year, the City of Camden, one of New Jersey's most dangerous cities in terms of violent crime and organized crime activity, was forced to lay off over 200 police and firefighters due to severe cuts in aid from Trenton. In mid January when the layoffs occurred, the cold weather kept most criminal activity indoors. Now that we are in the heat of the summer, residents are starting to see the real damage despite the fact that Camden managed to rehire 31 firefighters two months ago.
In three days starting on June 13, there were two massive fires in Camden at abandoned warehouses. The first fire was at the Shilo Battle Works near Chestnut and Orchard Streets, and the second fire was at former garment factory in Camdens Waterfront South section. Eyewitnesses reported seeing the fires begin within the large abandoned structures, which is a favorite hangout for squatters, drug users, and scrap metal hunters. The Camden fire department has also reported a general increase in small fires across the city in abandoned lots and houses, but could not say with any certainty whether the fires were the work of a serial arsonist or if each of the events were isolated. They simply do not have the manpower to investigate each one to be sure.
A Preview of Whats To Come
In a recent article in trade publication Risk and Insurance, Professor Joel Berg paints a bleak picture of what many American cities may be facing in the event of a continuation or worsening of our current financial crisis. He cites tightening city budgets as a general increase to overall risk factors for life and property, and the insurance industry is taking him very seriously.
In addition to an increase in large, uncontrollable fires due to smaller fire protection personnel, he cites several other emerging risk factors.
Vacant/Unfinished Buildings: These present easy targets for thieves looking for copper and other materials that can be sold on the black market for scrap. Smaller police forces reduce the number of patrols to prevent this type of crime, and scrap metal dealers feel as though they have no choice but to accept the stolen goods because the police do not have the manpower to investigate these crimes after the fact.
Pothole Damaged Roads: With cutbacks in road maintenance, potholes go unfilled, which increases the risk of serious auto accidents. In some neighborhoods, potholes are favorite stake-out points for muggers and car thieves as they wait for unwary motorists whose cars become disabled.
Reductions in Maintenance of Safety Vehicle Fleets: Another less painful place for police and fire departments to cut back is in the maintenance of their vehicle fleets and driver training. Other cutbacks include the purchasing of new vehicles to replace aging ones. This has resulted in a greater risk of accidents by emergency personnel and an increased risk of vehicle breakdowns.
Cutbacks in the Number of Safety Inspectors: With the reduction of safety inspectors, there is a growing culture of lax safety standards in the restaurant, construction and other high exposure businesses. My brother, who is a construction code enforcement officer for a suburban New Jersey town, assures me that at least in his department, this is not generally the case. However, he was quick to point out that he has no way of verifying the validity of Professor Berg's claim when it comes to the Health Department or for the construction offices in other municipalities who may be suffering from greater budget cuts than his own.
Aging Water & Gas Lines: These lines, some of which contain high levels of lead and other harmful chemicals, are a real concern in the coming years. A massive fire in western Philadelphia last year, which destroyed three apartment buildings and resulted in the deaths of two firefighters and several residents, was due to an aging gas line that exploded when it was accidentally ruptured by construction equipment. (The pipe was so old that the construction workers were not even aware it was there!) Ownership of these aging infrastructures are a mixed bag of private and public, and oftentimes assigning responsibility for maintenance and replacement is a challenge in itself. In addition, the costs associated with maintenance and replacement is prohibitive to say the least.
Your Insurance Company
The Insurance Institute of America, and by association your own property/casualty/life carrier, is well aware of these growing hazards and risks in your home town and they are starting to adjust your premium levels accordingly. While inflation levels in premium costs of homeowners insurance has remained relatively flat over the past 13 years, rates are on the rise especially for homeowners in places like Camden and its surrounding suburbs, where cutbacks in municipal services are resulting in a measurable increase in risk exposure.
The cruel irony is that as politicians promise to keep tax levels low in order to "encourage investment" and "stimulate the economy", your insurance company is increasing your premiums in order to compensate for the increased risk exposure due to cutbacks in municipal services. The end result is the same. You have less money in your bank account, but instead of your money going to improve and protect your neighborhood, it is being used to pay claims for damage that has been done after-the-fact.
Insurance is a wonderful thing in that it is designed to make a person or family whole after a tragedy strikes. The caveat is that a tragedy has to occur first in order for the insured to receive any benefit from their premium payments.
Is it not better to prevent tragedy from occurring in the first place?
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