New Jersey A 3902: Prohibits use of anti-concurrent causation clauses in homeowners insurance policies.

Bill Text

A3902 

ASSEMBLY, No. 3902 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ROBERT J. KARABINCHAK

District 18 (Middlesex)

Assemblyman STERLEY S. STANLEY

District 18 (Middlesex)

SYNOPSIS

���� Prohibits use of anti-concurrent causation clauses in 
homeowners insurance policies.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act 
concerning homeowners insurance and supplementing Title 17 of the Revised 
Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� As used in this act:

���� �Commissioner� means the 
Commissioner of Banking and Insurance.

���� �Homeowners insurance� means 
�homeowners insurance� as defined by section 1 of P.L.2009, c.409 
(C.17:36-5.33).

���� 2.��� An insurer authorized to 
transact the business of homeowners insurance in this State shall not exclude 
coverage in a homeowners insurance policy for loss or damage caused by a peril 
insured against under the terms of the policy on the grounds that the loss or 
damage occurred concurrently or in any sequence with a peril not insured 
against under the terms of the policy.� Any such provision to exclude coverage 
shall be void and unenforceable.

���� 3.��� This act shall take 
effect on the 90th day following enactment and shall apply to any homeowners 
insurance policy, delivered, issued, renewed, or approved on or after the 
effective date.

STATEMENT

���� This bill prohibits the use of 
�anti-concurrent causation� clauses in homeowners insurance policies issued in 
the State.� Currently, homeowners insurance companies are allowed to use these 
clauses in their policies with the result that, in situations in which a 
covered cause of loss or damage occurs concurrently or in any sequence with a 
non-covered cause of loss or damage, coverage for the entire loss or damage can 
be excluded and claims can be denied.� This bill would end that practice by 
prohibiting the use of anti-concurrent causation clauses in homeowners 
insurance policies and providing that any such provision to exclude coverage 
shall be void and unenforceable.� Homeowner insurance coverage controversies 
tend to arise with respect to anti-concurrent causation clauses in connection 
with water and wind damage from hurricanes and other extreme weather events.�