[HISTORY: Adopted by the City Council of the City of East Orange as indicated in article histories. Amendments noted where applicable.]
Article I Fire Insurance Claims
[Adopted 2-13-1979 as Ord. No. 7-1979]
As used in this article, the following terms shall have the following meanings:
- The State Commissioner of Insurance.
- Any lien, including liens for taxes, special assessments, municipal charges, demolition and clearance costs, arising by operation of law against property in favor of the City.
- PUBLIC OFFICER
- The Tax Collector of the City of East Orange, the Director of the Department of Property Maintenance or such other department head or public officer charged by law with the collection of assessments and municipal charges against real property.
- REAL PROPERTY
- Property upon which there is erected any residential, commercial or industrial building or structure.
No insurance company shall pay a claimant any claim in excess of $2,500 for fire damages on any real property located within the City of East Orange pursuant to any fire insurance policy issued or renewed after the effective date of this article until such time as all taxes and assessments and all other municipal liens or charges due and payable, including cost of demolition, appearing on the official certificate of search, pursuant to N.J.S.A. 17:36-8, shall have been paid either by the owner of such real property or by the insurance company. Except as otherwise herein set forth, the claim of the municipality shall constitute a special lien against the proceeds of the fire insurance policy and shall, as to such proceeds, be prior to all other liens and claims except the claim of a mortgagee of record named in such policy.
The provisions of this article shall not be deemed or construed to alter or impair the right of the City to acquire or enforce any lien against property under any other law of this state but shall be in addition to any other power provided by law to acquire or enforce such right.
Any insurance company writing fire insurance policies in the City of East Orange is authorized and required, prior to the payment of any claims for fire damages in excess of $2,500 to any claimant within the City of East Orange, to pay to the municipality the amount of the liens appearing on the official certificate of search and such other recorded liens or related charges as may be certified to the insurance company by the Public Officer, including the cost of demolition appearing on the official certificate of search or receipt of a certificate of estimated cost or that no such costs will be assessed, pursuant to N.J.S.A. 17:36-11; 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 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, together with interest accruing thereon, shall be disbursed in accordance with the final order or judgment of the Court.
The Public Officer shall maintain and update a certificate of search, which certificate will be available upon request by any insurance company.
Notwithstanding any other provision of this article, the City Council of the City of East Orange may at any time enter into an agreement with the owner 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 the redemption of the tax sale lien by installment payments pursuant to Article 7 of Chapter 5 of Title 54 of the Revised Statutes if the governing body of the municipality 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 from the City Council of the City of East Orange is authorized to make full payment on the claim to the insured person.
The City Clerk of the City of East Orange is hereby authorized and directed to file a certified copy of this article with the State Commissioner of Insurance immediately upon its passage.