Municipalities could report suspected rental policy violations to insurers

Municipalities could adopt ordinances setting criteria for insurer notifications about suspected rental-property policy violations, with a designated official responsible for notices under the bill. This applies to rental properties insured under a rental property insurance policy. The behavior must be reasonably observable without entering and inspecting the property and suspected to violate the policy's general terms. A municipality may set criteria for these reports. Examples include ongoing noise, dangerous overcrowding, illegal activity, property damage, violence, and reckless behavior that endangers neighbors or nearby property. The act would take effect immediately upon enactment. Each municipality's governing body would set when and how the official sends notices.