[HISTORY: Adopted by the City Council of
the City of Hackensack as indicated in article histories. Amendments
noted where applicable.]
[Adopted 6-4-1979 as Ord. No. 18-79]
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claims in excess of $2,500 on any real property located within the City of Hackensack unless or until the insured person submits an official certificate of search for municipal liens pursuant to N.J.R.S. 54:5-12, certifying that all taxes, assessments or other municipal liens or charges levied and assessed and due and payable to the City of Hackensack against said property have been paid or the City of Hackensack submits a certified copy of a resolution adopted pursuant to § 101-4 of this Article as permitted by Section 4 of Chapter 184 of the Laws of the 1978 of the State of New Jersey.
Any insurance company authorized to issue fire insurance policies in the State of New Jersey on real properties located within the City of Hackensack is prohibited from paying to a claimant any claim in excess of $2,500 for fire damages on any real property located within the City of Hackensack pursuant to any fire insurance policy issued or renewed after the final adoption of this Article and after the filing of this Article with the New Jersey State Commissioner of Insurance until such time as all taxes and assessments and all other municipal liens or charges due and payable to the City of Hackensack appearing on the official certificate of search shall have been paid either by the owner of such real property or by the insurance company pursuant to the provisions of § 101-3 of this Article and Section 3 of Chapter 184 of the Laws of 1978 of the State of New Jersey, or the City of Hackensack submits to such insurance company a copy of a resolution adopted pursuant to § 101-4 of this Article and pursuant to Section 4 of said Chapter 184 of the Laws of 1978.
Unless a resolution is received in accordance with § 101-4 of this Article, any insurance company writing fire insurance policies covering property in the City of Hackensack shall, prior to the payment of any claims for fire damage in excess of $2,500, pay to the City of Hackensack the amount of the liens appearing on the official certificate and such other recorded liens or related charges as may be certified to the insurance company; provided, however, that if an appeal is taken on the amount of any lien or charge other than an appeal on the assessed valuation of the property pursuant to N.J.R.S. 54:3-21, the insurance company shall withhold 75% of the full amount of the lien or charge being contested pending determination of all proceedings, at which time such money and all interest accruing thereon at a rate paid on interest-bearing accounts in banking institutions or savings and loan associations in the State of New Jersey shall be disbursed in accordance with the final order of judgment of the court.
Where the fire-damaged real property is located in the City of Hackensack, the City Council of the City of Hackensack may enter into an agreement with the owner of any fire-damaged property to pay in full all delinquent taxes, assessments or other municipal items by installments pursuant to N.J.R.S. 54:5-19, or for the redemption of the tax sale lien by installment payments pursuant to Article 7 of Chapter 5 of Title 54 of the New Jersey Revised Statutes, if the City Council is satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property. An insurance company receiving a certified copy of a resolution of agreement by the City Council is authorized to make full payment of the claim to the insured person.
A municipal claim made in accordance with the
provisions of Chapter 184 of the Laws of 1978 and the provisions of
this Article shall be paramount to any other claims on the proceeds
of the fire insurance policy except the claim of a holder of a mortgage
on the fire-damaged property, where the fire insurance policy at the
time of the loss listed the mortgagee as a named insured, in which
event the claim of the mortgagee to the proceeds shall be paramount
to the municipal lien under this Article only to the extent of the
amount due and payable to the mortgagee under the mortgage contract.
Nothing in this Article shall be construed:
A.
To obligate an insurance company for any amount in
excess of the value of the fire insurance policy on the property or
the amount of the liability of the insurance company thereunder.
B.
Except as provided in the case of appeals under § 101-3 of this Article, to obligate the insurance company for any liens not appearing on the official certificate or any certified changes submitted by the bonded official.
C.
To affect the authority of the city to enforce its
municipal lien under any other law of the State of New Jersey.
The official certificate of search may, from
time to time, be altered by the bonded official responsible for preparing
such certificates, in order to correct any errors or omissions or
to add any municipal liens or related charges due and payable subsequent
to the preparation of the official certificate.
This Article shall be filed with the New Jersey
State Commissioner of Insurance pursuant to the provisions of Chapter
184 of the Laws of 1978 of the State of New Jersey.
As used in this Article, the following terms
shall have the meanings indicated:
Includes all parties having interest in the real estate affected
by fire damage and all parties insured under the terms and provisions
of the fire insurance coverage of the property damaged.
[Adopted 3-28-2023 by Ord. No. 11-2023]
N.J.S.A. 40A:10A-1 et seq. requires all business owners, owners
of rental units, and owners of a multifamily home of four or fewer
units, one of which is owner-occupied, to maintain certain levels
of liability insurance. That statute further requires such business
and property owners to annually register a certificate of insurance
demonstrating compliance with the law's requirements with the
City of Hackensack. The purpose of this article is to implement the
requirements of the law within the City of Hackensack.
A.
Except as provided in § 101-11B, business owners and owners of rental units located in the City of Hackensack must maintain liability insurance for negligent acts and omissions in an amount not 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.
B.
Owners of multifamily dwellings with four or fewer units, one of
which is owner-occupied, must maintain liability insurance for negligent
acts and omissions in an amount not 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.
Owners of businesses or rental units subject to the requirements
of this article must annually register with the City of Hackensack
and provide a compliant certificate of insurance issued by the owner's
insurance company. The owner must file with the City Clerk a completed
registration form, along with a copy of the required insurance certificate
and an administrative fee of $50. The registration shall be in such
form and shall include such information as determined by the City
Clerk. For calendar year 2023, registrations shall be submitted no
later than 60 days after this article is adopted. Thereafter, annual
registrations shall be due by January 31 of each calendar year, or
within 30 days of registering a business that is located within the
City of Hackensack or obtaining ownership of a rental unit(s) located
within the City of Hackensack.
Upon the submission of the registration form and certificate of insurance required by § 101-12, the City Clerk shall confirm receipt of same to the owner of the business or rental unit(s) in manner to be determined by the City Clerk.
As authorized by N.J.S.A. 40A:10A-2, the City may issue a fine
of not less than $500 but no more than $5,000 against an owner who
fails to comply with the provisions of N.J.S.A. 40A:10A-1 et seq.
