HOMEOWNERS INSURANCE SURCHARGE FUNDING
The MTFRA is a distinct organization, separate from Brookside Engine Company #1 and Ralston Engine Company #1. While we are a separate entity, our purpose is to provide financial relief and emergency support to the volunteer firefighters who serve in those two companies. By ensuring your Home Owners policy is correctly coded, you are ensuring these men and women have the safety net they deserve.
The “Foreign Fire Tax” How It Works:
Under New Jersey State Law, all out-of-state (“foreign”) insurance companies are required to pay a 2% surcharge on the fire insurance portion of your premium.
• This is NOT an extra fee for you. It is already built into your existing premium.
• This will NOT increase your rates.
• This will NOT change your coverage.
CRITICAL: Physical Address vs. Mailing Address
The state determines where that 2% surcharge goes based on the PHYSICAL LOCATION listed on your policy. This is where most errors occur.
THE PROBLEM: Many residents in our township use a mailing address that references a different town. If your policy lists your physical/location as anything other then Mendham Township, the 2% surcharge is being diverted to those other Relief Associations instead of staying here in Mendham Township.
How to Verify Your Insurance Carrier (2 Simple Steps)
If you are unsure if your insurance carrier is “Foreign” (out-of-state), you can verify it in seconds:
1. Check the Domicile: Look at the bottom of your “Declarations Page.” It will usually state: “A [State Name] Stock Company.” If that state is anything other than New Jersey, they are required to pay this tax.
2. Check the NAIC Number: Every carrier has a 5-digit NAIC number. You can verify the “State of Domicile” by entering that number into the NAIC Consumer Tool at NAIC Consumer Tool. If it is not NJ, they are a “Foreign” carrier.
Note: Large carriers like Chubb or Allstate may have offices in NJ, but if their legal charter is in another state, they are considered “Foreign.”
What You Should Do Today
Please take a moment to look at your current Insurance Declarations Page. If your physical location is listed as a town other than Mendham Township or Brookside:
1. Contact your insurance agent or carrier.
2. Request an update to the “Physical Location Municipality” to Mendham Township.
Being proactive it ensures that the 2% surcharge you are already paying goes to the Mendham Township Firemen’s Relief Association, who in turn support the volunteers who protect your home and family.