(a) The City of Campbell is hereby providing a procedure to be followed in the event of fire damage to any building or structure in the City when said building or structure is covered by insurance. (Ord. 80-7473. Passed 10-1-80.)
(b) (1) When the loss agreed to between the same insured or insured’s and the company or companies equals or exceeds sixty percent of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company or companies in accordance with division (f) of Section 715.26 of the Ohio Revised Code shall transfer from the insurance proceeds to the Finance Director of the City of Campbell in the aggregate five thousand dollars ($5,000) for each twenty thousand dollars ($20,000) 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 or insured’s the insurance company or companies in accordance with division (f) of Section 715.26 of the Ohio Revised Code shall be required to obtain three (3) estimates for the demolition and destruction from 3 reputable contractors and that a sum equal to the lowest bidder be held in escrow and transferred to the Finance Director. (Ord. 06-0605. Passed 5-17-06.)
(2) 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 City of Campbell shall be disbursed in accordance with the policy terms.
(3) 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 City has not commenced to remove, repair or secure the building or other structure.
(c) (1) Upon receipt of proceeds by the City of Campbell as authorized by this section, the Finance Director 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 City of Campbell pursuant to Ohio R.C. 715.261.
(2) When transferring funds as required in subsection (b) hereof, an insurance company shall provide the City of Campbell with the name and address of the named insured or insureds, whereupon the City shall contact the named insured or insureds, certify that the proceeds have been received by the City and notify them that the following procedures will be followed.
(3) The fund shall be returned to the named insured or insures 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 City has not incurred any costs for such repairs, removal or securing. If the City 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 City shall transfer the remaining funds to the named insured or insureds. Nothing in this section shall be construed to limit the ability of a City to recover any deficiency under Ohio R.C. 715.261.
(4) Nothing in this section shall be construed to prohibit the City of Campbell 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.
(d) Proof of payment by the Company or Companies of proceeds under a policy in accordance with subsection (b) hereof is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company or companies with subsection (b) hereof.
(e) Nothing in this section shall be construed to make an insurance company liable for any amount in excess of proceeds payable under its insurance policy or for any other act performed pursuant to this section or to make the City of Campbell or Finance Director an insured under a policy of insurance or to create an obligation to pay delinquent property taxes or unpaid removal liens or expenses other than as provided in this section.
(f) An Insurance Company making payment of policy proceeds under this section for delinquent taxes or structure removal liens or removal expenses incurred by the City of Campbell shall have the full benefit of such payment including all rights of subrogation and of assignment.
(g) As used in this section and Section 3929.87 of the Ohio Revised Code, “Insurance Company” or “Insurer” includes the Ohio Fair Plan Underwriting Association as established in Section 3929.43 of the Ohio Revised Code.
(h) This section shall be liberally construed to accomplish its purpose to deter the commission of arson and related crimes, to discourage the abandonment of property, and to prevent urban blight and deterioration.
(Ord. 80-7473. Passed 10-1-80.)
(i) The Fire Chief shall notify the Director of Finance, in writing, of any fire, as described in this chapter, which is covered by insurance. (Ord. 91-8495. Passed 6-19-91.)
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