Edison, NJ – May 7, 2009 – (RealEstateRama) — An increasing number of homeowners in coastal areas throughout New Jersey are experiencing greater difficulty in obtaining homeowner’s insurance at an affordable rate. In response to this growing problem, the New Jersey Association of REALTORS® (NJAR®) today voiced its support for the “New Jersey Consumer Catastrophe Preparedness and Protection Act.” “As the list of affordable homeowner’s insurance options continues to shrink, many property owners are forced to take out policies with high-cost insurance companies like Lloyd’s of London,” said NJAR® Executive Vice President Jarrod C. Grasso. “For areas like New Jersey where home prices are higher than in other parts of the country, the additional financial burden of soaring insurance premiums will only make it more difficult to become a homeowner. NJAR® is eager to work with lawmakers to find a remedy to this troublesome situation.”
The bill, S-2089, sponsored by Senators Sweeney and Van Drew, establishes a New Jersey Catastrophe Fund to help pay covered residential property damage insurance claims in the event that a catastrophe occurs in New Jersey. Under the bill, insurance companies in the state would pay annual fees into the Fund. If damages from a catastrophic disaster exceed $2 billion, insurers could dip into the fund after they deplete their normal reserves. In addition to providing security for the insurance market, such a bill would help fund efforts of emergency responders, improve preparedness and establish comprehensive mitigation, education and prevention programs, all of which would help speed up a costly recovery from a major disaster, and save lives.
“NJAR® recognizes that insurance companies are trying to protect themselves in the event of a major catastrophe,” added Grasso. “Unfortunately, greater risk to the insurer means higher premiums for property owners. Lawmakers must take action to protect these companies to ensure they continue to do business in our state, thereby increasing competition and keeping costs down for homeowners.
“This is commonsense legislation that provides a safeguard for insurance companies but, more importantly, the creation of the Catastrophe Fund creates a crucial safety-net for homeowners when certain unfortunate events such as a hurricane or a nor’easter occur,” concluded Grasso.
Grasso noted that NJAR® needs the public’s input to address the increasing problem of consumers having difficulty either obtaining or affording adequate insurance. He encouraged anyone who has had difficulty securing homeowner’s insurance to complete NJAR®‘s online Homeowner’s Insurance Questionnaire at http://www.njar.com/government_affairs/issues/state/insuranceq.html.
The New Jersey Association of REALTORS®, with approximately 50,000 REALTOR® and REALTOR-ASSOCIATE® members, is one of the largest trade organizations in the state. NJAR®‘s membership is comprised of real estate professionals who subscribe to a strict Code of Ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
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For media inquiries contact:
Lauren Castellano
Media Coordinator
Phone: (732) 494-4709
Fax: (732) 404-8130
E-mail: lcastellano (at) njar (dot) com
For legislative related media inquiries contact:
Danielle Alpert
Government Relations Coordinator
Phone: (732) 494-4730
Fax: (732) 404-8127
E-mail: dalpert (at) njar (dot) com
