What is the maximum recovery allowed from the New Jersey Guaranty Fund for an insured’s loss?

The New Jersey Guaranty Fund is designed to protect policyholders in the event that an insurance company becomes insolvent. The maximum recovery allowed from this fund is set at $300,000 for each insured who is covered under the policy. This means that if a policyholder suffers a loss due to the insolvency of their insurer, they can recover a maximum of $300,000 for their covered claims.

Understanding this limit is crucial for policyholders, as it underscores the importance of being aware of the financial stability of their insurance providers. Recoveries beyond this limit are not supported by the Guaranty Fund, making it essential for consumers to understand their coverage limits and the implications of insurer insolvency.