No insurance company doing business in the state shall pay a claim of the named insured for fire damage to a structure located with the Village where the amount recoverable for the fire loss to the structure under all insurance policies exceeds ten thousand dollars ($10,000) and is greater than or equal to sixty percent (60%) of all fire insurance policy monetary limitations unless there is compliance with the following procedures:
(a) When the loss agreed to between the named insured and the insurance company equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company, in accordance with Ohio R.C. 715.26(F), shall transfer from the insurance proceeds to the Village/Clerk Treasurer in the aggregate amount of one thousand dollars ($1,000) for each ten thousand dollars ($10,000) 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 and the insurance company, the named insured has 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.
(b) Such transfer of proceeds shall be on a pro rata basis by all companies insuring the building or structure. Policy proceeds remaining after the transfer to the Village may be disbursed in accordance with the policy terms.
(c) The named insured 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 Village Clerk/Treasurer, after notifying the Village Building Inspector, shall return the amount of the funds in excess of the estimate to the named insured, provided that the Village has not commenced to remove, repair or secure the building or other structure.
(d) Upon receipt of proceeds by the Village as authorized by this Section, the Village Clerk/Treasurer shall place the proceeds in a separate 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.
(e) When transferring the funds as required herein, an insurance company shall provide the Village with the name and address of the named insured, whereupon the Village shall contact the named insured, certify that the proceeds have been received by the Village and notify them that the following procedures will be followed:
(1) The funds shall be returned by the Village Clerk/Treasurer to the named insured when repairs, or removal, or securing of the building or other structure has been completed and the required proof is received by the Village Building Inspector, provided that 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 after repair, rebuilding or removal has been completed. Nothing in this Section shall be construed to limit the ability of the Village to recover any deficiency under Ohio R.C. 715.261.
(f) Nothing in Ohio R.C. 3929.56(C) and (D), as adopted herein, shall be construed to prohibit the Village and the named insured from entering into an agreement that permits the transfer of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.
(Ord. 2005-13. Passed 8-10-05.)