The New Jersey Insurance Underwriting Association (NJIUA), the state’s residual property insurance plan, said it has received approval from the Department of Banking and Insurance to implement an overall rate increase of 2.7 percent.
The increase will go into effect Jan. 15, 2016, for new business and March 15, 2016, for renewal business.
The specifics of the increase include a 1.3 percent increase for the fire peril, 6.7 percent for extended coverage and 6.2 percent for vandalism.
The new rates apply to DP1 and DP2 dwelling policy forms. DP1 is a named peril policy, a basic fire policy that only covers certain named perils, while DP2 is a broad form policy that covers more perils. (For example, a water pipe burst in the house would be covered under DP2 but not DP1.)
There are no changes for commercial lines or crime coverage at this time, NJIUA said. NJIUA said its online quote system will be updated to reflect these changes.
NJIUA provides property insurance for state residents who cannot obtain coverage from the voluntary market. The association said it currently has 14,557 policies in force, 95 percent of which are personal property insurance policies.