APPENDIX K NEW JERSEY DEPARTMENT OF COMMUNITY AFFAIRSINSURANCE SPECIFICATIONS MINIMUM REQUIREMENTS PROPERTY AND LIABILITY
GENERAL INFORMATION
Name Insured
All policies providing Property/Crime/Liability and Equipment coverage must indicate the dual interest of the Owner and the New Jersey Department of Community Affairs.
Mortgage Clause (Standard Form)
All property insurance policies must name the mortgagee as:
New Jersey Department of Community Affairs 101 S. Broad Street PO Box 806 Trenton, NJ 08625-0806Insurance Company
Issuing insurer must be currently eligible to write business in the State of New Jersey and have a current A.M. Best Rating of B+ VII or better with acceptable reinsurance.
Insurance Agent
Must provide a written statement to the development that the policy(ies) being provided meets or exceeds the DCA minimum insurance requirements; a Certificate of Insurance showing the agent's Errors and Omissions coverage is to be included showing unimpaired limits of at least $5,000,000 and a deductible not exceeding $25,000.
Cancellation/Non-Renewal
A 60-day notice, except for non-payment of premiums, via Certified Mail is required.
MINIMUM INSURANCE REQUIREMENTS
Property
Real/Personal/Retail Values (including retaining walls/fences/exterior poles and signs).
Limits
Real and Personal Property: Blanket Replacement Cost — Agreed Value.
Rental Value: An amount equal to 100 percent of anticipated rental income for one year full occupancy — with no Coinsurance Penalty.
Coverage
Comprehensive "All Risk" or "Special" + Flood
Earthquake extended to include Building Ordinance cover with Joint Loss Agreement.
(Flood Earthquake cover may be sub-limited)
Deductible
Deductible amount is not to exceed $5,000 combined per loss.
No Deductible applicable to Glass losses.
COMMERCIAL GENERAL LIABILITY-OCCURRENCE COVER:
Limits:
$1,000,000 Combined Single Limit for Bodily Injury and Property Damage/Personal and Advertising Injury/Per Occurrence
$2,000,000 General Aggregate PER LOCATION
Coverages — To Include:
Automobile Non-Ownership and Hired Car Liability Employee Benefits Liability (Claims Made w/no deductible) Directors and Officers Liability (Where Applicable) Volunteers As Insured Medical Payments $5,000 Knowledge and Notice of Occurrence Unintentional Errors and Omissions
Fidelity
Limits (No deductible to apply)
$500,000 Employee Dishonesty per loss $3,000 Money and Securities — Inside Premises $3,000 Money and Securities — Outside Premises $100,000 Forgery or Alteration
including part time temporary employees, Directors and/or Trustees — whether compensated or not, unemployed spouses, and Managing Agents;
Umbrella Liability
Limits
$20,000,000 Excess of Primary $1,000,000/$2,000,000
Boiler and Machinery
Limits
Full Replacement Cost — Direct Damage Actual Loss Sustained — Combined Business Interruption/Extra Expenses — 100 percent of anticipated Rental Income for one-year full occupancy
Coverage
Comprehensive — Boilers/Fired and Unfired Pressure Vessels/Air Conditioning/Electrical Apparatus/Etc.
Valuation
Repair or Replace (New or Old)
Deductibles
Maximum of:
$1,000 Direct Damage
12 Hours Indirect Loss
Workers' Compensation
As Required.
NEW JERSEY DEPARTMENT OF COMMUNITY AFFAIRS INSURANCE SPECIFICATIONS MINIMUM REQUIREMENTS BUILDERS RISKName Insured
Must Include:
Project Owner New Jersey Department of Community Affairs General Contractor All Sub-Contractors
Project Owner alone can be denoted Insurance Trustee for purpose of claim payments
Mortgage Clause (Standard Form)
New Jersey Department of Community Affairs 101 South Broad Street PO Box 806 Trenton, NJ 08625-0806
Cancellation/Non-Renewal
A 60-day notice, except for non-payment of premium, via Certified Mail is required.
Insurance Company
Issuing Insurer must be currently eligible to write business in the State of New Jersey and have a current A.M. Best Rating of B+ VII or better with acceptable reinsurance.
Insurance Agent
Must provide a written statement to the development that the policy(ies) being provided meets or exceeds the HFA minimum insurance requirements; a Certificate of Insurance showing the agent's Errors and Omissions coverage is to be included showing unimpaired Limits of at least $5,000,000 and a deductible not exceeding $25,000.
Builder's Risk (Property)
Limits
Completed Value-Replacement Cost Property of Others for which you may be liable At temporary/Storage locations Transit Contractors Tools, Equipment and Machinery Construction Trailers Delayed Opening
Coverage
"All-Risk" (Inland Marine and Flood and Earthquake with Collapse and Theft of building materials, extended to include Building Ordinance cover.)
Note
Typical exclusions that must be deleted and/or modified to acceptable standards include:
Boiler Machinery Faulty Workmanship or Material Design Error
Deductible
Not to exceed $5,000 combined per loss
Occupancy
Permission must be given for partial occupancy provided such occupancy is reported within 30 days and rates/coverage forms are adjusted.
Termination of Coverage
Permitted only by any one of the following:
When the interest of the Insured ceases When the owner has accepted property When this policy has been cancelled or non-renewed Occupancy other that as outlined above
Subrogation
Must include permission to waive rights of subrogation prior to loss
LIABILITY
COMMERCIAL GENERAL LIABILITY-OCCURRENCE COVER
Limits:
$1,000,000 Combined Single Limit for Bodily Injury and Property Damage/Personal and Advertising Injury/Per Occurrence $3,000,000 General Aggregate PER LOCATION
Coverages-To-Include:
Automobile Non-Ownership and Hired Car Liability Owners Contractors Protective Notice of Occurrence Unintentional Error and Omissions
Umbrella Liability
Limits:
$20,000,000 excess of primary $1,000,000/$3,000,000
Workers' Compensation
As required.
New Rule, R. 2005 d. 277, effective September 6, 2005. See: 36 N.J.R. 4575(a), 37 N.J.R. 3288(a).