New Jersey S1013 (2024): Proposed Ban on Passing Condo Insurance Deductibles to Owners

Quick Answer

New Jersey Senate Bill 1013 (2024) is a proposal, not law. Sponsored by Senator Linda R. Greenstein, it would amend the Condominium Act so an association could not pass the cost of an insurance deductible to a unit owner, or a group of owners, for damage they did not intentionally cause. Our reading of the 2024 text is that today the statute does not contain that prohibition.

The same sponsor introduced a bill with the same synopsis, S3561, on February 19, 2026 in the current (222nd) Legislature. We read both introduced texts. We could not read any bill-status page, so committee action and final status are unconfirmed.

At a Glance

What the Bill Would Say

The bill makes three changes. The first two are shown in S3561 with the new words marked as additions; S1013's text is the same in substance, and its online copy did not preserve the markup.

• Section 46:8B-15(b). The association may charge a unit owner for repairing a common element the owner or the owner's tenant damaged, but would add: "the association shall not pass the cost of an insurance deductible to a unit owner or his tenant, or a group of unit owners or their tenants for the repair of any common element or unit not intentionally damaged by them."
• Section 46:8B-3(e), common expenses. In S3561 the phrase "including deductibles on insurance coverage" appears as an addition to the list of expenses for administration, maintenance, repair and replacement of common elements. Our reading: this would treat deductibles as a shared common expense rather than one charged to individuals.
• Section 46:8B-24(a). After damage covered by the association's required insurance, the association repairs using the proceeds, and unit owners directly affected are assessed "on an equitable basis" for any deficiency. The bill would insert "Except as provided in subsection (b) of section 15" at the start of that assessment sentence.

The sponsor's statement says that under current law, "a condominium association can pass the cost of any deductible arising from a claim under the association's insurance policy to an individual unit owner," and that the bill would "ensure that unit owners realize the full benefit of an association's insurance policy, which is the pooling of risks among a large group of similarly situated individuals."

What This Means in Practice

Current law

The bill is not law. Under the existing text of 46:8B-15(b), an association may charge an owner for repairing a common element damaged by the owner or the owner's tenant. Whether a deductible can be charged to an owner today depends on the statute, the master deed and bylaws, and the facts. Ask counsel; this page does not resolve it. Our related page on 46:8B-15 covers the section as currently written.

If it passes (our reading)

• The prohibition is tied to damage "not intentionally damaged by them." It does not on its face address damage an owner caused intentionally.
• Boards would have to spread a deductible across all owners as a common expense or cover it from reserves or operating funds, rather than billing the unit where the loss started.
• The bill text does not address insurance policies with high deductibles, special deductibles or other cost pressures. It does not address whether existing bylaw provisions that allocate deductibles would be overridden, though the effect of a statute that applies "notwithstanding" nothing is not stated.

Open questions

• Whether either bill received committee consideration.
• Whether the "common expenses" wording in S3561 is in S1013 as formally introduced.
• How the bill would apply to losses before its effective date.

Timeline

Related New Jersey Law

• N.J.S.A. 46:8B-15: association powers and fines
• N.J.S.A. 46:8B-21: assessment liens and priority
• Thanasoulis v. Winston Towers 200 Association (1988): limits on association charges
• New Jersey HOA laws and regulations

Board Checklist

• Do not tell owners a deductible rule has changed. S1013 and S3561 are proposals.
• Read your master deed and bylaws for any provision on deductibles and owner responsibility.
• Ask counsel and your insurance agent how your current deductible policy works and what it would mean for the budget.
• Review the size of your deductible and whether reserves or an operating line cover it.
• Document how any deductible was allocated in past claims and why.
• Have counsel monitor the bills and any amendments.

Frequently Asked Questions

Is it illegal for a New Jersey condo association to charge an owner the insurance deductible?

This bill would make it so for damage the owner did not intentionally cause, but it is not law. Current rules depend on the statute and your governing documents; ask counsel.

Who sponsored the bill?

Senator Linda R. Greenstein, District 14 (Mercer and Middlesex), on both S1013 and S3561.

What sections of the Condominium Act would change?

N.J.S.A. 46:8B-3, 46:8B-15 and 46:8B-24.

Does it cover homeowners' associations?

The bill amends P.L.1969, c.257, the Condominium Act, so on its face it concerns condominium associations.

Would it apply to damage an owner caused on purpose?

The prohibition is written for damage "not intentionally damaged by them." The text does not otherwise address intentional damage.

Did it pass?

We found no evidence it passed, but we could not read the bill-status page. Check the Legislature's bill search for the current status of S1013 and S3561.

Where This Comes From

We read the introduced text of S1013 (2024) at pub.njleg.gov and of S3561 (introduced February 19, 2026). The Legislature's bill-status pages did not load, so we did not confirm committee action or final disposition. A search result also referred to earlier similar bills in prior sessions; we did not read them and do not describe them.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed New Jersey attorney before acting.