This bill enables municipalities in New Jersey to place a lien on the insurance proceeds of properties damaged by fire, provided they adopt an appropriate ordinance. The legislation defines key terms such as "enforcement officer," "final settlement," and "total loss," and establishes that the municipality's lien will take precedence over other claims, except for mortgage liens. The lien specifically pertains to insurance coverage for damages caused by fire or explosion, excluding personal property losses. Municipalities are required to notify insurance companies and follow specific procedures to enforce these liens, including conditions under which the lien may expire.

Additionally, the bill mandates that municipalities must return lien amounts to insured property owners who commit in writing to restore the damaged property within 120 days. If the property owner fails to provide reasonable proof of restoration within this timeframe, the municipality can retain the insurance proceeds to secure, repair, or demolish the property in accordance with local codes. The bill also requires business and rental unit owners to maintain liability insurance for fire-related damages, with minimum coverage amounts specified. This legislation aims to enhance the recovery and restoration of fire-damaged properties while ensuring municipalities can recoup associated costs, and it will take effect 180 days after enactment.

Statutes affected:
Introduced: 17:36-9, 40:10A-1