A new, NJ state law was passed in August that requires all businesses and residential rental properties to provide proof of insurance to the municipality where they are located.
The law goes into effect November 3, 2022.
AN ACT requiring liability insurance for business owners and rental unit owners and supplementing Title 40A of the New Jersey Statutes.
C.40A:10A-1 Liability insurance, negligent acts, omissions; business owners, rental unit, units owner.
- Owner of a business or the owner of a rental unit or units shall maintain liability insurance for negligent acts and omissions 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.
- Owner of a multifamily home which is four or fewer units, one of which is owner occupied, shall maintain liability insurance for negligent acts and omissions in an amount of no less than $300,000 for combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence.
C.40A:10A-2 Certificate of insurance, annually registration, municipality of business, rental units, multi-family home.
2 a. The owner of a business, owner of a rental unit or units, and the owner of a multifamily home of four or fewer units, one of which is owner occupied, shall annually register the certificate of insurance demonstrating compliance with section 1 of this act with the municipality in which the business, rental units, or multi-family home is located.
b. The governing body of a municipality may, by ordinance, establish a reasonable administrative fee for the certificate of registration.
The governing body of a municipality may collect a fine of not less than $500 but no more than $5,000 against an owner who failed to comply with the provisions of this act.
Approved August 5, 2022.
Please contact the City Clerk’s Office with any questions.
New State Law Impacting Rental Properties and Businesses
A great step forward when NJ liberals and conservatives remember how to protect their citizens! Two-sided reasoning rocks.
Not sure if this is a present to insurance companies, or to municipalities who will no doubt charge fees just to collect the paperwork.
What are they trying to do? Any negligence or liability award claimed by the tenant will be a heck of a lot more than $300-500k in a civil suit.
Keep on making unnecessary regulations and driving up the cost of everything, New Jersey.
So you think it’s not necessary to provide proof of insurance and have the requisite approvals for rental properties – especially in the era of things like AirBnB? Why ?
Sea Isle City says they have to return checks within 2 days if insurance policy is not received.
I do not see that regulation here.
It seems like waste of time sending checks back and forth. Collect the money, deposit the money and ask for insurance policy.
If landlord doesn’t send, fine landlord