Before
applying to the Association, all applicants must make a diligent effort to
secure coverage in the voluntary insurance market.
Any person having an insurable
interest in the property to be insured may complete an application. Partnerships, corporations or other legal
entities must disclose information about principal owner, and other owned
properties. Refer to the forms section
of this guide for current forms required.
Any real property or personal property
located within the state of New Jersey is potentially insurable.
Certain types of property, or properties with
certain conditions are not insurable with the Association. Refer to the
following section for more specific guidelines.
This list describes conditions
or circumstances that make the property uninsurable until they are
corrected. Other conditions, discovered
upon inspection or investigation, may make the property uninsurable until
improvements are made. The insured will
be notified of the conditions that require modification.
a. Automobile risks or automobile property.
b. Farm risks or property used for agricultural pursuits.
c. Buildings on which property taxes are unpaid
for two or more quarters.
d. Buildings that are vacant or unoccupied and accessible to unauthorized persons.
e.
Buildings with any of the rental units in the building being
vacant or unoccupied and accessible to unauthorized persons.
f.
Buildings that have an exceptional degree of hazard,
such as the following:
-
Buildings previously damaged, and the damages are
not repaired within a reasonable time.
-
Buildings in danger of collapse because of
dilapidated or serious structural conditions.
-
Buildings used for storage of flammable materials.
-
Buildings that have been condemned.
g.
Buildings
that have characteristics of ownership, condition, occupancy or maintenance
that violate public policy, such as the following:
-
Buildings from which fixed and salvageable items
have been or are being removed.
-
Failure to furnish heat, water, sewer or public
lighting.
-
Failure to correct conditions dangerous to life,
health or safety, or violations of applicable laws.
-
When there is reasonable knowledge and belief that
the property is endangered and is not reasonably protected from possible arson
for profit.
-
The building is used for selling or using drugs or
narcotics.
h.
The
insured has been indicted for or convicted of arson or burning with intent to
defraud, or there is evidence of incendiaries or attempt thereat by the insured
or representative of the insured.
· Personal Property (Contents)
If the Association is providing the
building coverage……………Up to 50% of the Building Limit
-
Maximum of $250,000
If the Association is not providing the
building coverage……………$50,000 – Maximum Per Location
All policies provide coverage on an actual cash value basis. Replacement cost coverage is not available.
By case law, New Jersey is considered a Broad Evidence state, and many
factors could potentially affect the determination of ACV.
Such factors might include:
· Assessed value of the improvement to the land.
· Market value of the building, less land.
· Replacement cost of the building less physical depreciation.
· Three-year rental income from the property.
· The potential for alternative uses of the building.
· Obsolescence factors such as cost of upgrading to meet current building codes.
The principle of indemnity underlies any determination of ACV. Insurance recovery for a property loss
should correspond to the actual financial loss sustained by any insured. The insured should not benefit from the
loss.
Direct loss to property caused by:
· Fire, Lightning,
· Explosion, Wind, Hail, Smoke, Aircraft, Vehicles, Riot or Civil Commotion,
· Vandalism or Malicious Mischief
· Mine Subsidence
The Association does not provide:
· Broad perils such as water damage or collapse
·
Flood coverage
·
Liability coverage
· Theft coverage
The policy period is one year and policies are not automatically continued or renewed. A Notice of Expiration is mailed to the insured approximately 30 to 60 days prior to expiration. A completed application and full annual premium must be received by NJIUA before coverage is renewed.
For applications
on property that may be uninsurable, as defined in this guide, coverage cannot
begin until after an inspection is completed.
This includes all vacant or unoccupied properties, and those previously
damaged but not yet repaired.
For most applicants
coverage begins upon receipt by the Association of the fully completed and
signed application, plus any required supplemental forms, with full payment of
the net annual premium.
“Receipt
by the Association” means:
·
If sent by U.S. Certified Mail,
at 12:01 AM on the next day following the USPS cancellation date.
·
If sent by regular mail, at
12:01 AM on the day the application is actually received in the Association
Office.
·
If personally delivered to
the Association Office by the Applicant, at 12:01 AM on the day AFTER the date
delivered.
Facsimile transmission of
applications is not permitted to establish when coverage begins.
Incomplete applications will be returned, and
may cause delay in establishing when coverage begins.
An inspection may be conducted to confirm information provided on the application, or to verify insurability of property. There will be no cost to the applicant for any inspection.
The annual minimum premium for the dwelling policy is $50.
A minimum all perils deductible of $500 applies to all policies.
In the coastal areas, a larger all perils deductible, and a special hurricane deductible may apply. Refer to chart below using property zip code and distance from the ocean.
07002 |
07713 |
07753 |
08248 |
08739 |
07008 |
07715 |
07755 |
08400 |
08740 |
07036 |
07716 |
07756 |
08403 |
08750 |
07064 |
07717 |
07757 |
08404 |
08753 |
07077 |
07718 |
07758 |
08405 |
08754 |
07201 |
07719 |
07760 |
08411 |
08755 |
07202 |
07720 |
07762 |
08721 |
08756 |
07206 |
07721 |
07764 |
08723 |
08757 |
07302 |
07723 |
08005 |
08724 |
08758 |
07304 |
07730 |
08050 |
08730 |
08832 |
07305 |
07732 |
08087 |
08731 |
08861 |
07306 |
07735 |
08092 |
08732 |
08862 |
07709 |
07737 |
08212 |
08734 |
08878 |
07711 |
07748 |
08223 |
08736 |
08879 |
07712 |
07750 |
08230 |
08738 |
|
· More than two (2) miles from the ocean as measured at mean high tide.
2% Hurricane Deductible with a $500 All
Perils Deductible.
· Between one (1) and two (2) miles from the ocean as measured at mean high tide. 2% Hurricane Deductible with a $1,000 All Perils Deductible.
· Within one (1) mile or less from the ocean as measured at mean high tide.
3% Hurricane Deductible with a $1,000 All Perils Deductible.
NOTE: If the insured property is located in a zip code 08050, 08731 or 08758 and over five (5) miles from the ocean as measured at mean high tide, only the $500 All Perils Deductible will apply.
COASTAL
GROUP #2 ZIP CODES
07734 |
08202 |
08243 |
08402 |
08742 |
07740 |
08203 |
08247 |
08406 |
08751 |
08006 |
08204 |
08260 |
08735 |
08752 |
08008 |
08226 |
08401 |
|
|
· 4% Hurricane Deductible with a $1,500 All Perils Deductible.
On Dwelling property, the policy form in use
by the Association does not contain a coinsurance clause.
Vacant, unattended, deteriorating property does
not promote orderly community development.
Buildings that are vacant or unoccupied and open and accessible to
unauthorized persons are not insurable under this plan.
Policy
conditions suspend coverage and require notice to the Association if a property
is vacant at inception, or becomes vacant during the policy term. A Supplemental Application is required, and
coverage does not begin until after approval by the underwriter.
New “ground up” construction is not
considered vacant during the period of construction.
Renovation or remodeling of an existing
building is considered vacant unless it is occupied by the insured during the
renovation period.
Seasonal property is not considered vacant
during the normal period of seasonal unoccupancy.
Property described as seasonal means it is continuously unoccupied for a period of three or more consecutive months. A property is not considered vacant during its normal period of seasonal occupancy.
Property under construction means new from the foundation or “ground up” construction. It does not apply to an existing building undergoing remodeling or renovation. A property under construction is not considered vacant during the construction period.
Property under renovation means an existing building is undergoing remodeling, renovation, or repair. A property under renovation is considered vacant unless occupied by the insured throughout the renovation period.