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 liens on insurance proceeds from fire-damaged commercial, industrial, and multi-family residential properties (excluding single-family homes) to cover demolition costs and unpaid taxes. The lien applies only to real property damage up to the policy’s coverage limits for fire/explosion damage, prioritizing municipal claims over most other debts except mortgages. Property owners must maintain fire and explosion insurance coverage for affected properties, and insurers must withhold lien-eligible payments until municipal claims are resolved. This change modifies how municipalities can access insurance funds for property restoration after fire incidents.