Municipalities could alert insurers to suspected rental property risks

A municipality may adopt an ordinance setting criteria for notifying a rental property's insurer about suspected policy violations. The criteria cover rental properties. Examples include noise, dangerous overcrowding, underage drinking or illegal drug use, property damage, violence, and reckless behavior that endangers neighbors or nearby property; the list is not limited to these examples. The activity must be reasonably observable without entering and inspecting the property. It must be suspected, not proven, to violate the policy's general terms. The act would take effect immediately if enacted.