Do you own rental property at the Jersey shore? Then, I have some news that you need to be aware of. On August 5th of this year, the State of NJ passed a law stating that rental property owners must now file proof of liability insurance for their properties with the municipality in which the property is located. This law officially goes into effect on November 3rd, 2022. So, if you have not provided your municipality with this proof yet, you need to so ASAP.
New Jersey Liability Insurance Law Title 40A-10A Supplement
New Jersey’s Title 40A talks about insurance requirements for running a business in the state. In August, officials added a supplement to Title 40A that included owners of rental properties. It states that anyone who owns a rental unit(s) or owns a multi-family home of four units or less with the owner residing in one of the units must provide the municipality in which the property is located with proof of liability insurance. Individual rental property owners must take out a policy for no less than $500,000 in total for both property damage and bodily injury or death. Multi-family homeowners (four units or less with one owner-occupied unit) need $300,000 combined. They must file proof of current insurance with the appropriate municipality every year.
Penalty for Non-Compliance
Anyone who does not comply with this new liability insurance law faces fines of between $500 and $5000. Therefore, it is very important that you provide your municipality with your proof of insurance as soon as possible. Otherwise, as of November 3rd, 2022, you face paying a large fine for non-compliance. To view the text of this Title 40A supplement, please download a copy here.
New Jersey ANCHOR Program
Let’s end this post on a high note. Remember, you have until December 30th to apply for the ANCHOR Program. Homeowners and renters both may be eligible for a one-time $450 to $1500 relief payment. Make sure you apply as soon as possible so as not to miss out on your rebate.
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate