Permits municipalities to place lien on fire-damaged property's insurance proceeds in certain instances and requires fire and explosion insurance coverage for certain individuals.

This bill permits New Jersey municipalities to place liens on insurance proceeds for fire-damaged properties in certain circumstances. It requires business owners and rental property owners to maintain at least $500,000 in liability insurance for fire or explosion damage, while owners of small multifamily homes (four or fewer units, one owner-occupied) must maintain at least $300,000. Property owners must agree in writing to restore damaged properties within 120 days to regain access to insurance proceeds, or municipalities can use the withheld funds for repairs or demolition. Insurance companies must withhold certain payments until the lien is satisfied or the restoration is completed.