UPDATE ON the NEW JERSEY PRESBYTERIAN INSURANCE PARTNERSHIP

What Is Changing?
Beginning with the upcoming insurance renewal, all churches in our NJ Presbyterian Insurance Partnership  will move to a $25,000 property insurance deductible. At the same time, the Presbytery is establishing an NJ Presbytery Insurance Deductible Fund to ensure that most congregations will not experience an increase in their actual out-of-pocket costs.

What Does This Mean for Your Church?
In simple terms:

• Your insurance policy will reflect a $25,000 deductible

• Your effective deductible will remain the same as it is now

• The Presbytery will help cover the difference through the new NJ Presbytery Insurance Deductible Fund

How the Deductible Fund Works
If your church experiences a claim:

• You report the claim as usual to the insurance company
• The insurance company determines the claim amount
• The Presbytery fund helps cover the gap between your current deductible and $25,000

For example:

• If your current deductible is $10,000 and you have a $20,000 claim:
  • Your church pays $10,000
  • The Presbytery Fund pays $10,000
• If your current deductible is $10,000 and you have a $40,000 claim:
  • Your church pays $10,000
  • The Presbytery Fund pays $15,000
  • Insurance pays $15,000

Why Are We Making This Change?
This new approach allows us to:

• Lower insurance premiums for congregations

• Stabilize costs over time

• Make good use of our strong claims history

• Share risk across churches, supporting one another—especially smaller congregations

How Is the Fund Supported?
The Deductible Fund will be sustained through:

• Insurance profit-sharing or no-claims bonuses
• Support from each Partner Presbytery

Will Premiums Change?
Most churches are expected to see premium savings beginning with the upcoming renewal cycle and continuing in future years. The Deductible Fund is designed to ensure these savings do not come with added financial risk.

Are There Any Exceptions?
Yes. Flood and wind deductibles are not affected by this change and will continue to be handled separately.

What Do You Need to Do?
No immediate action is required. Please continue to:

• Care for your property responsibly
• Report claims as you normally would

Additional details will be shared prior to your renewal.

Key Takeaway
Your coverage remains the same.
Your effective deductible remains the same.
Your costs are expected to decrease.