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NJ S428
Bill
Status
Introduced
1/13/2026
Primary Sponsor
Brian Stack
Click for details
AI Summary
- Municipalities may enact ordinances allowing them to place liens on insurance proceeds from fire-damaged properties to ensure restoration, with the lien amount capped at policy limits for real property damage plus debris removal
- Property owners can avoid municipal retention of insurance proceeds by agreeing in writing to restore fire-damaged property to its pre-fire condition within 120 days and providing adequate guarantees such as escrow deposits or performance bonds
- If property owners fail to restore fire-damaged structures within 120 days of the municipality receiving insurance proceeds, the municipality may use those funds to secure, repair, or demolish the property to meet local code requirements
- Business owners and rental property owners must maintain liability insurance covering fire and explosion damage of at least $500,000, while owner-occupied multifamily homes of four units or fewer must maintain at least $300,000 in such coverage
- Insurers must provide municipalities with coverage statements within 14 days of receiving a fire-related claim and conduct physical inspections within 35 days, or the claim may be deemed settled at full policy limits
Legislative Description
Permits municipalities to place lien on fire-damaged property's insurance proceeds in certain instances and requires fire and explosion insurance coverage for certain individuals.
Commerce
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee
1/13/2026
Committee Referrals
Commerce1/13/2026
Full Bill Text
No bill text available