Bill > S428

Introduced Session

This bill permits a municipality to place a lien on a fire-damaged property's insurance proceeds in certain instances and requires fire and explosion insurance coverage for certain individuals. Under the bill, a municipality will be allowed to place a lien on a fire-damaged property's insurance proceeds. A municipality that adopts an ordinance allowing these liens to be placed will be required to ensure that the ordinance provides for the release or return to the insured any amounts to which the insured would otherwise be entitled to claim, provided that the insured agrees with the municipality in writing to restore the fire damaged property to the same or improved condition that the premises was prior to the damage within four months or 120 days. Municipalities that adopt an ordinance to allow the municipality to place a lien on a fire-damage property's insurance proceeds must include a procedure within the ordinance to withhold payment by the insurer of the proceeds. The bill additionally provides that, for municipalities who adopt the ordinance, if reasonable proof that the damaged or destroyed portions of the insured structure is not received by or shown to an authorized representative of the municipality within 120 days after the policy proceeds was received by the municipality, the municipality may retain and use the policy proceeds to secure, repair, or demolish the structure and property to comply with local code requirements and applicable ordinances of the municipality. The bill also provides that the owner of a business or owner of a rental unit or units will be required to maintain liability insurance for damage cause by fire or explosion in an amount that is no less than $500,000 for combined property damage and bodily injury to or death of one or more person in any one accident or occurrence. Owners of a multifamily home that is four or fewer units, one of which is owner-occupied, shall also maintain similar liability insurance for damage caused by a fire or explosion in an amount that is no less than $300,000 for combined property damage and bodily injury to or death of one or more person in any one accident or occurrence.

AI Summary

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Brian Stack (D)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)

Official Document