The Village adopts and follows the procedure set forth in Ohio R.C. 3929.86 whereby no insurance company doing business in the State shall pay a claim of a named insured for fire damage to a structure located within the Village where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000.00) unless there is compliance with the following procedures:
(a) (1) When the loss agreed to between the named insured or insureds and the company or companies equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company or companies in accordance with Ohio R.C. 715.26(F) shall transfer from the insurance proceeds to the Village Clerk in the aggregate two thousand dollars ($2,000.00) for each fifteen thousand dollars ($15,000.00) and each fraction of that amount, of a claim, or if at the time of a proof of loss agreed to between the named insured or insureds and the insurance company or companies the named insured or insureds have submitted a contractor’s signed estimate of the costs of removing, repairing or securing the building or other structure, shall transfer from the insurance proceeds the amount specified in the estimate. Such transfer of proceeds shall be on a pro rata basis by all companies insuring the building or other structure. Policy proceeds remaining after the transfer to the Village shall be disbursed in accordance with the policy terms. The named insured or insureds may submit a contractor’s signed estimate of the costs of removing, repairing or securing the building or other structure after the transfer, and the designated officer shall return the amount of the fund in excess of the estimate to the named insured or insureds, provided that the Village has not commenced to remove, repair or secure the building or other structure.
(2) At the request of the owner/insured, the Village Engineer will inspect the property after repair/demolition and authorize the Village Clerk to return the deposit to the insured. Any subsequent inspection by the Village Engineer conducted to confirm compliance will result in a fee of one hundred fifty dollars ($150.00) charged against the insurance proceeds for each occurrence.
(b) (1) Upon receipt of the proceeds by the Village as authorized by this section, the Village Clerk shall place the proceeds in the Village Treasury in a separate sub-fund, to be used solely as security against the total cost of removing, repairing or securing incurred by the Village pursuant to Ohio R.C. 715.261. When transferring the funds as required in subsection (a) hereof an insurance company shall provide the Village with the name and address of the named insured or insureds, whereupon the Village shall contact the named insured or insureds, certify that the proceeds received by the Village and notify them that the following procedures will be followed:
(2) The fund shall be returned to the named insured or insureds when repairs or removal or securing of the building or other structure have been completed and the required proof received by the designated officer, if the Village has not incurred any costs for such repairs, removal or securing. If the Village has incurred any costs for repairs, removal or securing of the building or other structure, such costs shall be paid from the fund and if excess funds remain, the Village shall transfer the remaining funds to the named insured or insureds. Nothing in this section shall be construed to limit the ability of a municipal corporation to recover any deficiency under Ohio R.C. 715.261.
(3) Nothing in this subsection shall be construed to prohibit the municipal corporation and the named insured or insureds from entering into an agreement that permits the transfer of funds to the named insured or insureds if some other reasonable disposition of the damaged property has been negotiated.
(c) The Village Clerk is hereby designated as the officer authorized to carry out the duties of this section. The Village Clerk shall file a certified copy of this section with the Superintendent of Insurance of the State.
(Ord. 2138-06. Passed 11-27-06.)