Bill
Bill > A4641
NJ A4641
NJ A4641Concerns 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.
summary
Introduced
03/10/2026
03/10/2026
In Committee
03/10/2026
03/10/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
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.
AI Summary
This bill allows a municipal governing body, which is the local government of a town or city, to create rules, called an ordinance, that would let the municipality inform an insurance company if there's activity at a rental property that seems to break the rental property's insurance policy. This activity must be something the municipality can see from the outside, without going onto the property, and could include things like constant loud noise, dangerous overcrowding, underage drinking or illegal drug use, property damage, violence, or reckless behavior that puts neighbors or their property at risk. The bill also requires the municipality to assign a specific official to handle these notifications to insurance companies, and it clarifies that the municipality can ask the rental property owner for a copy of their insurance policy terms. This measure builds upon a previous law that already requires owners of businesses and rental properties to maintain a minimum of $500,000 in liability insurance.
Committee Categories
Housing and Urban Affairs
Sponsors (2)
Last Action
Introduced, Referred to Assembly Housing Committee (on 03/10/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A4641 |
| BillText | https://pub.njleg.gov/Bills/2026/A5000/4641_I1.HTM |
Loading...