The legislature has adopted Chapter 24 of the Laws of 1978 authorizing a municipality to adopt an ordinance regulating
the payment of an insurance claim in excess of $2,500.
No insurance company authorized to issue fire insurance policies
in this state shall pay any claim in excess of $2,500 on any real
property located within Washington Township unless or until the insured
person submits 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 said property have been paid.
The governing body may enter into an agreement with the owner
of any fire-damaged property to permit said owner to pay in full all
delinquent taxes or municipal liens or by installments if the governing
body is satisfied that the claim for fire damage is to be used to
restore or improve the fire-damaged property.