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.

S3703

SENATE, No. 3703

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 2, 2026

Sponsored by:

Senator� JOHN J. BURZICHELLI

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.