Seaside Heights Adopts Rental Insurance Requirements In Response to New State Law

A sign advertising prom and summer rentals in Seaside Heights. (Photo: Daniel Nee)

Seaside Heights officials on Wednesday adopted an ordinance setting requirements for liability insurance and registration pursuant to a new state law that requires towns to maintain logs of rental properties and owners to maintain insurance.

While the law, parts of which go into effect Nov. 1, 2022 and Jan. 1, 2023, was largely a product of environmental issues in urban apartment settings, the law applies to every municipality statewide, including seasonal rentals in the Shore area. The law, passed in August, requires both business owners and rental property owners to carry $500,000 in liability insurance, or $300,000 in the case of a multi-family rental property that is owner-occupied.

The law further requires municipal governments to maintain a list of all rental properties within their borders, digital in nature and accessible to the public. Because creating and maintaining such a database comes with a cost, the state announced it would allow towns to attach a fee to the registration, which Seaside Heights set at $50 annually.

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The ordinance was passed unanimously, with no comments from members of the public.