Post Date December 26, 2013 – New Jersey Homeowners Insurance Rates may experience changes in the very near future. legislators planning to provide clearer information to New Jersey homeowners insurance buyers are introducing a few new bills which would require New Jersey Homeowners Insurance carriers to provide a clearer policy summary when a New Jersey Homeowners Insurance Policy is sold.
New Jersey Homeowners Insurance Laws Were Very Confusing After Super Storm Sandy
The bill if passed, will require NJ insurance companies that offer New Jersey homeowners insurance policies to provide their policyholders one-page summary explaining the coverages covered under the NJ insurance policy form. The summary is so simple, it’s difficult to beleive it was not offered in the past. The exclusions and “notable coverages” will be outlined by the New Jersey Department of Banking and Insurance in the new law. It shall also explain the insurance company’s hurricane deductible program.
The new law was introduced as a result of the mass confusion experienced by New Jersey Homeowner Insurance Policy owners were observed after Superstorm Sandy hit the State of New Jersey. Many New Jersey Homeowners Insurance Policyholders were shocked to find exclusions in their policies when they made claims with their homeowners insurance companies.
The said one-page policy summary will be included in a brochure which will be provided to the new and renewal policyholders. As the bill went to the committee process, the one-page policy summary shall not replace any of the terms and conditions of the New Jersey Homeowners Insurance Policy.
Under current New Jersey law governing homeowners insurance, the insurer must provide the policyholder a consumer information brochure outlining their hurricane deductible as well. There was much confusion on what and what was not covered under the National Flood Insurance Program. If the bill shall be enacted, the said brochure shall then have the additional one-page policy summary.