TRENTON, NJ — In a significant legislative move, New Jersey has proposed a law requiring all individuals entering into or renewing lease agreements for dwelling units to obtain renter’s insurance. The act, integrated into chapter 8 of Title 46 of the Revised Statutes, will take effect 90 days following its enactment if passed by the legislature and signed by Governor Phil Murphy.
Renter’s insurance is not required by law currently in New Jersey.
The proposed law defines a “dwelling unit” as a self-contained area within a residential structure, equipped with necessary amenities for permanent living accommodations. The term “lease agreement” refers to an agreement transferring possession or control of a dwelling unit for consideration.
Under this law, “renter’s insurance” is an insurance policy or contract that covers personal property loss, liability claims, and additional living expenses incurred due to temporary displacement from the dwelling unit.
This bill aims to provide financial protection for individuals leasing residential properties, ensuring coverage for unforeseen circumstances that may result in property loss or displacement. The law would apply to all lease agreements entered into or renewed following its effective date.