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FAIR plan · New Jersey

New Jersey FAIR Plan (NJIUA)

Checked against official sources · Last reviewed October 13, 2026

What the New Jersey FAIR Plan is

NJIUA says it "is an Association created by the Legislature of New Jersey in 1968 to provide essential property insurance to any person unable to obtain insurance from a voluntary company." FAIR stands for "Fair Access to Insurance Requirements." Today NJIUA runs the Property FAIR Plan and the Crime Indemnity Plan.

The law that created it (N.J.S.A. 17:37A) makes every insurer that writes property insurance in New Jersey a member, and members share its "writings, expenses, profits and losses" based on their New Jersey premiums. A 21-member board of directors runs it, and the Department of Banking and Insurance (DOBI) "has oversight responsibility for NJIUA."

This site is not the New Jersey FAIR Plan and is not affiliated with it. We explain the plan's published rules; the plan, your agent and DOBI make the decisions. [1][11][12][13][14]

Who is eligible

State law lets anyone with an insurable interest in insurable property, "who has failed to procure essential property insurance from an authorized insurer in the normal insurance market," apply. The plan issues a policy if it finds that you made "a diligent effort" to get insurance in the normal market, that the property is insurable, and that you don't owe unpaid, uncontested premium for prior insurance on the property. The plan's guide says: "Before applying to the Association, all applicants must make a diligent effort to secure coverage in the voluntary insurance market."

What counts: one- to four-family private dwellings, owner- or tenant-occupied, and the household contents that go with them. The plan also writes commercial and crime policies. It doesn't insure cars or farms.

Your neighborhood doesn't count against you. The law says "neighborhood, area, location, environmental hazards beyond the control of the applicant or ownership of the property shall not be considered" in deciding insurability.

The condition of the property does. The plan lists conditions that make a property uninsurable "until they are corrected," including:

- property taxes "unpaid for two or more quarters"; - buildings that are vacant or unoccupied "and accessible to unauthorized persons"; - earlier damage "not repaired within a reasonable time," danger of collapse, or condemnation; - failure to furnish heat, water, sewer or public lighting, or to correct conditions "dangerous to life, health or safety"; - an insured indicted for or convicted of arson.

The plan says the insured "will be notified of the conditions that require modification." Inspections are free.

Vacant, seasonal and renovation property. A property under renovation "is considered vacant unless occupied by the insured throughout the renovation period." Seasonal property (unoccupied three or more months in a row) is not considered vacant during its normal unoccupied season. [3][8][9][15][16]

What it covers and what it doesn't

The plan writes dwelling fire policies, not full homeowners packages.

Actual cash value means replacement cost minus depreciation, so you get less for an older roof than the cost of a new one. Not every home qualifies for DP2. The plan excludes vacant dwellings, mobile homes, fire-only policies, homes with two or more fire or water losses in five years, and flat roofs not updated or replaced within the last ten years. Those homes may still get DP1.

Limits for a one- to four-family home (the plan's producer guide and Plan of Operation):

The Plan of Operation lets the plan's Underwriting Committee approve more in some cases, but never more than $1,500,000 in total at one location.

The plan's older consumer guide, still posted on its site, lists lower limits ($500,000 building, $750,000 total). Confirm current limits with the plan or your agent.

Not covered: "Flood coverage or earthquake coverage" and "Liability coverage." The plan says liability is not available because "The Association is authorized to write only essential property insurance." Theft coverage can be added by endorsement for owner-occupied dwellings, on-premises contents only, in $1,000 steps from $1,000 to $20,000. Mine subsidence coverage is included on all dwelling policies "for a flat charge of $5 per policy."

For flood, see our sister site FloodHawk. [2][3][9][16][17]

Deductibles and the coastal hurricane deductible

Every policy has an all-perils deductible of at least $500, and the minimum annual premium is $50. In coastal ZIP codes, the plan adds a larger all-perils deductible and a hurricane deductible. Its producer guide sets them by ZIP code group and distance from the ocean or bay, measured at mean high tide:

In ZIP codes 08050, 08731 and 08758, a property more than five miles from the ocean gets only the $500 all-perils deductible. The ZIP code lists are in the plan's guides. The plan's older consumer guide and a 2007 policyholder notice show lower percentages (2% to 4%), so check your declarations page.

When it applies: the plan's notice says the hurricane deductible applies only when the National Weather Service measures sustained winds "of 74 miles an hour or greater anywhere in the state," from 12 hours before that measurement until 12 hours after the last one. The percentage is applied to the dwelling (Coverage A) amount, or to contents if only contents are insured. Example from the plan: a 3% deductible on $100,000 of dwelling coverage is $3,000.

Lowering it: the plan's Hurricane Deductible Program lets you request a lower hurricane deductible if your home has wind-resistant features. Two are always required: a roof (supports, decking and shingles) built to withstand winds of 85 mph or more, and wooden roof trusses tied to the walls with metal hurricane straps or clips ("Nailing is not appropriate"). The other three are protected windows and glass doors, braced garage doors, and exterior doors with three or more hinges and deadbolts. Under the plan's schedule:

• 3% deductible with features 1 and 2: drops to your all-perils deductible.
• 4% deductible: features 1 and 2 cut it to 2%; all five features cut it to the all-perils deductible.
• 5% deductible: features 1 and 2 cut it to 3%; all five cut it to the all-perils deductible.

You apply with form HD 99 03 and supporting receipts or contracts; ask your agent or the plan. [3][16][18][19]

How to apply

1. Try the regular market first. The law and the plan both require a diligent effort to get coverage from a regular insurer. 2. Use an agent, or apply directly. "All agents or brokers licensed to do business in the state of New Jersey are eligible to place business" with the plan. The agent acts for you, "NOT as an agent of the Association," and can't bind coverage. To apply without an agent, you sign a Direct Authorization letter. 3. Pay the full premium. For most applicants, coverage begins when the plan receives the fully completed, signed application and "full payment of the net annual premium." Faxed applications don't set the start date. If you mail it certified, coverage starts at 12:01 a.m. the day after the postmark. 4. Inspection. The plan inspects the inside and outside of the property. For property that may be uninsurable, including vacant homes and damaged homes not yet repaired, coverage can't begin until the inspection is done.

Hurricane freeze: the plan "will not accept applications for any new policies nor any request for increased coverage on an existing policy when either a hurricane watch or hurricane warning is in effect for any portion of New Jersey." The suspension lasts until 24 hours after the watch or warning ends. [3][7][8][16][20]

Renewals, payments and claims

- No automatic renewal. Policies run one year and "are not automatically continued or renewed." The plan mails a Notice of Expiration about 30 to 60 days before the policy ends; a renewal application and premium must reach the plan before coverage is renewed. - Installments (renewals only): two equal payments, the second due 90 days after the renewal date, with a $5.00 service fee per payment. - Pay online at the plan's payment page with your policy number and property ZIP code, by credit card or from a bank account. We found no policyholder account login: the login on the plan's FINYS site is set up for agents, with a "Producer Registration" form. - Claims: report a loss to your agent "as soon as possible," or, if you don't have one, directly to the plan by phone, fax, mail or online. The plan says "You can expect to be contacted by the adjuster within two days of our receipt of the claim." Protect the property from more damage, make reasonable temporary repairs and keep the receipts. - Claims phone: (866) 654-7526. Claims fax (973) 297-5033. [1][3][5][6][16][21]

If the plan turns you down or cancels

The plan's Plan of Operation says it "shall not cancel or refuse to continue" an eligible policy except for fraud, material misrepresentation, arson by or for the insured ("incendiarism"), failure to pay the full premium, or an increased hazard or material change in the risk. Its guide says it can cancel "with 30 days notice or, if conditions warrant, a Short Notice cancellation with 10 days notice," and the notice must give the reasons and "the measures required to make the property insurable."

A written declination must list the conditions that make the property uninsurable, what would fix them, and your right to appeal. Under the Plan of Operation you may appeal to NJIUA's Board of Directors "within fifteen days after any final ruling, action or decision." State law also lets you appeal to the Commissioner of Banking and Insurance: if the plan denies your application or doesn't act on it in time, and, for insured people, within 30 days after a plan decision on matters the Commissioner treats as appealable. [3][8][9][22]

Rates and recent changes

- May 1, 2026: DOBI approved an overall 4.1% rate increase for new and renewal business. DP1 and DP2 dwelling fire rates rose 3.7% and extended coverage 5.8%; vandalism rates were unchanged. - June 1, 2024 (new business) and August 1, 2024 (renewals): an overall 5.7% increase, 8.3% for owner-occupied dwellings and 5.3% for tenant-occupied buildings. The plan called it "the first increase since January 2020." - 2025: the plan moved to a new policy system (FINYS), which its home page says is "now available for online quotes, new business, policy transactions, payments and claims FNOL submissions."

Size and finances: the 2023 annual report, the latest posted, says the plan "ended the year with 6,629 total policies," with written premium of $5,050,000, down 3.6%. It reported 167 losses that year and a net gain of $373,000. It said its exposure to a major event "continues to decline and remains well within our assessment limit." By law, a member insurer's share of a year's deficit is capped at 5% of its surplus. [1][10][13][23][24][25]

Getting back to a regular insurer

The plan's mission statement says: "As the market of last resort, we will not seek customers, and will not encourage producers to place business with us." DOBI's advice is to "Consider the FAIR Plan only if you cannot obtain insurance from any other source."

Policies don't renew automatically, and the plan's guide says a policy can be renewed "If coverage cannot be obtained in the voluntary market." For shopping, DOBI keeps a list of companies that write homeowners insurance in New Jersey. [2][3][26][27]

Help

- New Jersey FAIR Plan (NJIUA): (973) 622-3838; press 1 for customer service, 2 to report a new claim. Mail: 570 Broad Street, P.O. Box 32609, Newark, NJ 07102. The plan's home page says lobby hours are "Tuesday and Friday only from 10am to 2pm" and asks you to call before you come. - Complaints about an insurer or the plan: New Jersey Department of Banking and Insurance, (800) 446-7467 or (609) 292-7272, or online from the DOBI consumer assistance page. - New Jersey rules if you were dropped: Homeowners Insurance in New Jersey. [1][4][28]

Questions people ask