This bill enables municipalities in New Jersey to impose a lien on the insurance proceeds of properties damaged by fire, contingent upon the adoption of specific ordinances. It introduces new definitions such as "enforcement officer," "final settlement," and "total loss" to clarify the management of fire damage claims. The legislation allows municipalities to claim against fire or homeowners insurance proceeds, establishing a statutory lien that takes precedence over other claims, except for those of mortgagees. The lien is intended to cover restoration costs, including demolition if necessary, and outlines procedures for notifying insurance companies and conditions for lien release.

Additionally, the bill mandates that owners of businesses and rental units maintain liability insurance for fire or explosion damages, with minimum coverage requirements of $500,000 for businesses and $300,000 for multifamily homes with four or fewer units. This provision aims to ensure sufficient financial protection against fire-related liabilities. The bill also stipulates that unclaimed insurance amounts must be returned to the insured if they agree to restore the property within 120 days; otherwise, the municipality may retain the proceeds for necessary repairs or demolition. The legislation is set to take effect 180 days after enactment.

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