Landlords

Business and Rental Unit Liability Insurance Implementation of P.L. 2022, c. 92

P.L. 2022, c. 92, signed into law on August 5, 2022, institutes a new minimum liability insurance requirement for owners of businesses and rental units (whether residential or non-residential). Such owners will be required to annually register the certificate of insurance in the municipality where the business or rental unit is located.

It is unlawful for any owner of a rental unit or units, to operate within the Township without first registering its certificate of insurance demonstrating compliance with the requirements of N.J.S.A. 40A:10A-1, et seq.

Please view the recently adopted Ordinance 2023-004, entitled “AN ORDINANCE ESTABLISHING A NEW CHAPTER 15 OF THE CODE OF THE TOWNSHIP OF FRANKFORD ENTITLED, REGISTRATION OF RENTAL PROPERTIES AND BUSINESSES”, which details all requirements.

All owners of residential dwelling units within the Township shall submit to the Township Clerk the Residential Rental Registration Form: Landlord Registration Form.pdf. Please add two contact numbers to this form for us.

IMPORTANT: If your rental was built prior to 1978 only, you will also need to provide the Clerk with a lead-safe certification upon the earlier of (1) thirty (30) days following tenant turnover; or (2) July 22, 2024, consistent with N.J.A.C. 5:28A-2.4. The State of New Jersey has provided a list of certified lead evaluation contractors here: List of Certified Lead Evaluation Contractors

Please note that a $20.00 per unit fee shall be submitted to the Township Clerk with the initial lead-free certification and with the initial and all subsequent lead-safe renewal certifications.

Minimum Insurance Coverage

Effective for new insurance policies issued on or after November 3, 2022, the law will require the owner of a business, or one or more rental units, to maintain liability insurance for negligent acts and omissions in an amount of no less than $500,000 for combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence. Such insurance could be provided as part of policies such as those for commercial general liability, personal liability, or an umbrella insurance policy. However, owner-occupied two-family, three-family, or four-family homes are subject to a lower $300,000 coverage minimum which becomes effective for insurance policies issued on or after February 1, 2023.

Registration with Municipality

Certificates will be registered with the municipal clerk's office.
See the NJ Registration Form.

Enforcement

Through a summary proceeding pursuant to the “Penalty Enforcement Law of 1999” (N.J.S.A. 2A:58-10 et seq.), the governing body of a municipality may collect a fine of not less than $500, but no more than $5,000, against an owner failing to comply with the law.

For More Information

Landlords may contact the Clerk's Office for more information.
email: clerk@frankfordtwp-nj.com