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 allows New Jersey municipalities to place a lien on insurance proceeds from fire-damaged properties to cover restoration costs. It applies specifically when a property is deemed a "total loss" due to fire or explosion (requiring demolition for safety), affecting property owners in residential/commercial buildings. The lien covers only real property insurance coverage (including debris removal), must be paid before most other liens (except mortgages), and requires insurers to withhold funds until the lien is satisfied. Municipalities must follow specific procedures, including submitting resolution copies to insurers, to enforce the lien.