A4641: Concerns authority of municipal governing body to notify insurance company if there is activity at…

A4641 ASSEMBLY, No. 4641 STATE OF NEW JERSEY 222nd LEGISLATURE INTRODUCED MARCH 10, 2026 Sponsored by: Assemblywoman  HEATHER SIMMONS District 3 (Cumberland, Gloucester and Salem) Assemblyman  DAVID BAILEY, JR. District 3 (Cumberland, Gloucester and Salem) SYNOPSIS Concerns authority of municipal governing body to notify insurance company if there is activity at rental property which is suspected to violate general terms of rental property insurance policy. CURRENT VERSION OF TEXT As introduced. An Act concerning municipal oversight over certain rental properties and supplementing P.L.2022, c.92 (C.40A:10A-1 et seq.). Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1.    a.  The governing body of a municipality may enact an ordinance establishing criteria under which the municipality is authorized to notify an insurance company which insures a rental property if there is activity at the rental property that is reasonably observable without entering and inspecting the premises which is suspected to violate the general terms of the rental property insurance policy.  The criteria may include, but not be limited to, activity such as: (1)   excessive, ongoing noise violations; (2)   visible, dangerous overcrowding; (3)   underage drinking or illegal drug use; (4)   property destruction or vandalism; (5)   fighting or violence; and (6)   reckless behavior endangering neighbors or neighborhood properties. b.    The governing body of a municipality shall designate an official who shall be responsible for notifying an insurance company pursuant to this section, in a time and manner as determined by the governing body, of any reasonably observable behavior, pursuant to subsection a. of this section, which is suspected to violate the general terms of the rental property insurance policy. c.     Notwithstanding any law, rule, or regulation to the contrary, a municipality shall be authorized to request from an owner of a rental property a copy of the terms of the rental property insurance policy. 2.    This act shall take effect immediately. STATEMENT This bill authorizes the governing body of a municipality to enact an ordinance establishing criteria under which the municipality is authorized to notify an insurance company which insures a rental property if there is activity at the rental property that is reasonably observable without entering and inspecting the premises which is suspected to violate the general terms of the rental property insurance policy. Under the bill, the criteria may include, but is not limited to, activity including: · excessive, ongoing noise violations; · visible, dangerous overcrowding; · underage drinking or illegal drug use; · property destruction or vandalism; · fighting or violence; and · reckless behavior endangering neighbors or neighborhood property. The bill provides that the governing body of a municipality is to designate an official to be responsible for notifying an insurance company, in a time and manner as determined by the governing body, of any reasonably observable behavior which is suspected to violate the general terms of the rental property insurance policy. The bill also specifies that a municipality is authorized to request from an owner of a rental property a copy of the terms of the rental property insurance policy. On August 5, 2022, P.L.2022, c.92 was signed into law, requiring the owner of a business or the owner of a rental unit or units to maintain a liability insurance policy, including, but not limited to, commercial general liability insurance, personal liability, or an umbrella insurance policy for negligent acts in an amount of no less than $500,000 for combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence.