The New Jersey Department of
Banking and Insurance has adopted new rules for those companies utilizing a
hurricane deductible. These rules standardize the language of the hurricane
deductible endorsement and require each company to provide at new business and
renewal a policyholder notice and consumer brochure that explains the hurricane
deductible program in use.
The New Jersey Insurance
Underwriting Association has had a hurricane deductible in place since March
1999 for dwelling fire business located in 92 coastal zip codes designated by
the Department of Banking and Insurance. The Association has adopted the
standardized hurricane deductible endorsement language proposed by the
Department of Banking and Insurance effective March 1, 2004 for new business
and May 1, 2004 for renewal business. Although the format of the endorsement
has been changed, the way the deductible is applied to a policy in the event of
a covered loss has not changed. The hurricane deductible percentage and the
corresponding all peril deductible determined by the property’s distance from
the ocean or bay remain the same as well.
endorsement, HD 04 05 (01-2004) replaces the existing Hurricane Deductible
Endorsement, HD 99 01 (03-99) and HD 99 04 (03-99), Hurricane Damage Mitigation
Plan form. The information contained in these two forms is now part of
the new Hurricane Deductible Endorsement and the new Consumer Guide, HDP
If you have any question
about this program, click here.