The City is hereby authorized to utilize the procedure described in Ohio R.C. 3929.86(c) and (d), whereby no insurance company doing business in the State shall pay a claim of the named insured for fire damage to a structure located within the City where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000) unless there is compliance with the following procedures:
(a) (1) When the loss agreed to between the named insured or and the company or companies equals or exceeds percent 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) or Ohio R.C. 505.86, shall transfer from the insurance proceeds to the Building Inspector 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. However, 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 of the costs of removing, repairing or securing the building or other structure, then the insurance company or companies shall transfer from the insurance proceeds the amount specified in estimate.
(2) The Building Inspector or his or her designee shall establish the criteria for securing such structure and/or such property.
(3) The transfer of proceeds shall be on a pro rata basis by all insuring the building or other structure. Policy proceeds remaining after the transfer to the City shall be disbursed in accordance with the policy terms.
(4) 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, the Building Inspector 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.
(b) (1) Upon receipt of proceeds by the City as authorized by this section, the Building Inspector 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 pursuant to Ohio R.C. 715.261.
(2) When transferring the funds as required in subsection (a) hereof, an insurance company shall provide the City 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: The fund shall be returned to the named insured or insureds when repairs, removal or securing of the building or other structure has been completed and the required proof has been received by the Building Inspector. If the City has not incurred any costs for such repairs, removal or securing, the City shall transfer the fund to the named insured or insureds no later than sixty (60) calendar days after the Building Inspector receives the required proof that the building or other structure has been repaired, removed or secured as to prevent unauthorized entry into the structure and/or onto the property itself. If the City has incurred any costs for the repairs, removal or securing of the building or other structure, such costs shall be paid from the fund, and if excess funds remain, the Building Inspector shall transfer the remaining funds to the named insured or insureds no later than sixty (60) calendar days after all such costs incurred by the City have been paid. Nothing in this section shall be construed to limit the ability of the City to recover any deficiency under Ohio R.C. 715.261. Required proof, for the purpose of this section, shall mean that the building or structure has been secured in accordance with the criteria established by the Building Inspector or his or her designee to prevent unauthorized entry into such building or structure and/or onto said property.
(3) Nothing in this section shall be construed to prohibit the City 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 Building Inspector of the City is hereby designated as the officer authorized and directed to carry out the duties of this section. The Building Inspector shall file a certified copy of this section with the Superintendent of Insurance of the State.
(Ord. 14-12-O. Passed 4-23-12.)