NJM submitted a homeowners filing in New Jersey introducing a by-peril rating approach for its Safe Homeowners Insurance Plan (SHIP), while updating deductibles, discounts, and endorsement pricing across its homeowners program. The filing has a proposed effective date of January 5, 2027 for new and renewal business.

According to the filing, NJM is eliminating the minimum and maximum premium difference for optional deductibles and revising deductible factor tables so they vary by Coverage A bands. The insurer is also adding a new umbrella companion discount and renaming its “Paid-In-Full/Electronic Fund Transfer Discount” to “Payment Type,” which now includes escrow and lienholder factors.

The filing introduces a by-peril pricing structure for HO-3 and HO-5 policies, where premiums are calculated separately for perils including fire, theft, water, wind, liability, and catastrophe exposure, with peril-specific factors applied for discounts and underwriting characteristics.

NJM said the filing also updates base key premiums, water backup rates, fungi coverage rates, and rate order calculations. Revised factors include secondary residence, age of dwelling, deductibles, insurance score, distance to coast, high severity ZIP codes, roof age, and smart home discounts.

The filing affects approximately 362,011 policyholders and $637.6 million in written premium in New Jersey. NJM reported a 0.0% overall rate impact, though individual policy changes may range from decreases of 37.7% to increases of 166.9%.

Bottom Line: NJM is moving toward more granular homeowners pricing by rating individual perils separately, allowing the carrier to apply different underwriting and discount factors across fire, water, wind, theft, and catastrophe exposures without changing the program’s overall statewide rate level.