Effective May 1, 2002 for new business only the rate for vandalism coverage on vacant homes under renovation will be increased. With this change, the vandalism rate will be the same for all vacant risks classified as either under renovation or vacant and secured to N.J.I.U.A. standards. Once the company is informed that the property is occupied, the rate will be changed when the occupancy is verified by an inspection.
When using the E.I.O. rate quote software, if a structure is vacant and under renovation, use code 3, vacant, in the occupancy field. Using this code will give you an accurate quote and avoid a large shortage notice. If you need information on the rating software, please contact our office or call E.I.O. at 609-267-1992.
Inforce accounts that are currently classified as under renovation will not be increased at renewal. Since these risks are already in a state of renovation and should be occupied within a reasonable amount of time, the rates will remain the same.
It is recognized by the industry that vacant properties in general represent an inherent increase in exposure, and rates should be set to address that aspect of the property. The N.J.I.U.A. is taking this action in response to this fact.