City of Camden, NJ Chapter 357 Fire Insurance Claims

[HISTORY: Adopted by the City Council of the City of Camden 4-26-1979 by Ord. No. MC-1464; amended in its entirety 7-25-1985 by Ord. No. MC-2140[1] (Ch. 314 of the 1987 Code). Subsequent amendments noted where applicable.]

[1] Editor's Note: As originally adopted, Ord. No. MC-2140 was prefaced as follows:

"Whereas, the Senate and the General Assembly of the State of New Jersey have enacted an act entitled 'An Act Concerning Payment of Tax Liens on Fire-Damaged Properties in Certain Instances,' P.L. 1978, c. 184, authorizing any municipality, by ordinance, to prohibit payment to a claimant by any insurance company of any claim exceeding $2,500 for damages on real property caused by fire until all municipal liens on said real property have been paid, subject to certain specific exceptions; and

"Whereas, the Council of the City of Camden is desirous of adopting such an ordinance in order to receive payment for municipal liens on real property suffering fire damage; now, therefor."

Chapter 184 of the Laws of 1978 may be found in N.J.S.A. 17:36-8 et seq.

§ 357-1 Payment of fire insurance claims restricted.

[Amended 4-9-1987 by Ord. No. MC-2289]

Every insurance company issuing fire insurance policies in the City of Camden is prohibited from paying a claimant any claim in excess of $2,500 for fire damages on any real property located within the City of Camden pursuant to any fire insurance policy issued or renewed after the adoption of this chapter and after the filing of this chapter with the State Commissioner of Insurance, until such time as anticipated demolition costs and taxes and assessments and all other municipal liens or charges due and payable appearing on the final certificate of search shall have been paid, either by the owner of such real property or by the insurance company, pursuant to § 357-3 of this chapter or pursuant to a resolution of the governing body adopted pursuant to § 357-4 of this chapter.

§ 357-2 Procedure allowing payment of claims.

A. In order to receive payment of claims, the insured person must submit an official certificate of search for municipal liens pursuant to N.J.S.A. 54:5-12, certifying that all taxes, assessments or other municipal liens or charges levied and assessed and due and payable against property have been paid.

B. Claims in excess of $2,500 may be paid by the insurer if the insurer adheres to the following procedure:

(1) The insurer must first inquire and be notified by the municipality within 60 days whether any improvements on the property will require demolition and the anticipated costs thereof.

(2) The insurer must deposit the anticipated costs of demolition, together with all taxes, assessments, liens and other municipal charges, in an interest-bearing escrow account in a state or federally chartered bank, savings bank or savings and loan association in this state.

(3) To avoid the procedure prescribed in § 357-2A above, the insurer must submit a statement, on a form prescribed and certified by the City, that demolition is not required or that the costs or anticipated costs have been paid or that the City has submitted a certified copy of a resolution pursuant to § 357-4 of this chapter.

§ 357-3 Withholding during appeals of liens.

If an appeal is taken on the amount of any lien or charge, other than an appeal on the assessed valuation of real property pursuant to N.J.S.A. 54:3-21, the insurance company shall withhold 75% of the full amount of the lien or charge being contested pending termination of all proceedings, at which time such moneys and all interest accruing thereon, at a rate paid on interest-bearing accounts in an interest-bearing escrow account in a state or federally chartered bank or a savings and loan association in the state, shall be disbursed in accordance with the final order or judgment of the court.

§ 357-4 Agreements for payment authorized.

The Council may, at its discretion, authorize the Tax Collector, by resolution, to enter into agreements with the owners of any fire-damaged property to pay in full all delinquent taxes, assessments or other municipal liens by installments, pursuant to N.J.S.A. 54:5-19, or for redemption of the tax sale lien by installment payments, pursuant to Article 7 of Chapter 5 of Title 54 of the New Jersey Statutes Annotated, or for payment in full of any anticipated costs of demolition by installment if the 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 any such resolution adopted by the Municipal Council is authorized to make full payment on the claim to the insured person.