Bill Text: NJ A3910 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires home insurance companies to cover water damage caused by ground seepage, water or sewer pipe damage, or flooding.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-03-04 - Withdrawn from Consideration [A3910 Detail]
Download: New_Jersey-2024-A3910-Introduced.html
Sponsored by:
Assemblywoman VICTORIA A. FLYNN
District 13 (Monmouth)
SYNOPSIS
Requires home insurance companies to cover water damage caused by ground seepage, water or sewer pipe damage, or flooding.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning homeowners insurance and supplementing Title 17 of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. An insurer authorized to transact in the business of homeowners insurance in this State shall include in every homeowners insurance policy covering a one-to-four-family dwelling, coverage for water damage caused by groundwater seepage, water or sewer pipe damage, or flooding. This section shall not be construed to prohibit an insurer from offering to continue coverage on different terms and conditions if the insured fails to reduce the risk of additional or future claims or losses, either by effecting necessary repairs or taking other remedial action.
b. As used in this section:
"Groundwater seepage" means a substantial amount of water in the ground adjacent to a foundation wall or basement floor of a dwelling, causing the water to seep through any flaws in the foundation wall or floor and into the interior of the dwelling.
"Water damage" means physical damage to the interior portions of a dwelling that has come into direct contact with water.
"Water or sewer pipe damage" means a water or sewer pipe that has burst or is leaking.
2. This act shall take effect on the 90th day next following enactment, and shall apply to policies and contracts that are delivered, issued, executed, or renewed on or after that date.
STATEMENT
This bill requires home insurance companies to cover water damage caused by ground seepage, water or sewer pipe damage, or flooding.
Under the bill, an insurer authorized to transact in the business of homeowners insurance will be required to include in every insurance policy covering a one-to-four-family dwelling, coverage for water damage caused by groundwater seepage, water or sewer pipe damage, or flooding. The bill will not be construed to prohibit an insurer from offering to continue coverage on different terms and conditions if the insured fails to reduce the risk of additional or future claims or losses, either by effecting necessary repairs or taking other remedial action.
