Township of Winslow, NJ Chapter 31 Fire Insurance Claims

[HISTORY: Adopted by the Township Committee of the Township of Winslow 7-15-03 as Ord. No. 0-22-03. Amendments noted where applicable.]

§ 31-1 Payment of claimants restricted.

Pursuant to N.J.S.A. 17:36-8 et seq., every insurance company issuing fire insurance policies in the Township of Winslow is prohibited from paying a claimant any claim in excess of two thousand five hundred dollars ($2,500.) on any real property located within the Township of Winslow pursuant to any fire insurance policy issued or renewed after this chapter has been adopted and filed with the State Commissioner of Insurance, until such time as anticipated demolition costs, 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 property or by the insurance company, pursuant to a resolution of the governing body adopted pursuant to Section 31-3 of this chapter.

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

B. Claims in excess of two thousand five hundred dollars ($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 sixty (60) days whether any improvements on the property will require demolition and the anticipated costs thereof.

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

(3) To avoid the procedure prescribed in Subsection A above, the insured must submit a statement on a form prescribed and certified by the Township of Winslow that demolition is not required or the costs or anticipated costs have been paid or that the Township of Winslow has submitted a certified copy of a resolution pursuant to Section 31-3 of this chapter.

§ 31-2 Appeal; withholding of payments.

If an appeal is taken on the amount of any lien or charge, other than an appeal on the assessed valuation of the real property pursuant to N.J.S.A. 54:3-21, the insurance company shall withhold seventy five percent (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, savings bank, savings-and-loan association in the State shall be disbursed in accordance with the final Order or Judgment of the Court.

§ 31-3 Installment agreements for payment of liens.

The township governing body 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 Revised Statutes or for payment in full of any anticipated costs of demolition by installment if the township governing body 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 is authorized to make full payment on the claim to the insured person.