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. It introduces new definitions such as "enforcement officer," "final settlement," and "total loss" to clarify the roles and processes involved in managing fire damage claims. The lien will take precedence over other claims, except for those of mortgagees, and will specifically apply to coverage for damages caused by fire or explosion, excluding personal property losses. The bill also outlines the procedures for notifying insurance companies and the conditions under which these liens can be released, including stipulations for total loss scenarios.

Additionally, the legislation requires owners of businesses and rental units to maintain liability insurance for fire or explosion damages, with minimum coverage amounts of $500,000 for general properties and $300,000 for multifamily homes with four or fewer units. This requirement aims to ensure adequate financial protection against potential liabilities from fire-related incidents. The bill will take effect 180 days after its enactment, establishing a structured process for municipalities to recover costs associated with restoring fire-damaged properties while ensuring property owners and insurers are informed of their rights and responsibilities.

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