Pursuant to the provisions of Ohio R.C. 3929.86 (C) and (D), 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 City where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000) and the loss equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building or structure unless there is compliance with the following procedures:
(a) Where 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 City Auditor in the aggregate of two thousand dollars ($2,000) for each fifteen thousand dollars ($15,000), 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 insureds and the insurance company or companies, the named insured or insureds have submitted a contractor's signed estimate of the cost 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 City shall be disbursed in accordance with the policy terms. The named insured or insureds may submit a contractor's signed estimate of the cost 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. At the request of the owner/insured, the chief building official will inspect the property after repair/demolition and authorize the Auditor to return the deposit to the insured.
(b) Upon receipt of the proceeds by the City as authorized by this section, the City Auditor shall place the proceeds in the City Treasury in a separate fund to be used solely as security against the total cost of removing, repairing or securing the building or structure incurred by the City, pursuant to Ohio R.C. 715.261. When transferring the funds required by 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:
(1) The funds 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 City has not incurred any cost for such repairs, removal or securing. If the City has incurred any cost 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 herein shall be construed to limit the ability of the City to recover any deficiency under Ohio R.C. 715.261.
(2) 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) 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.
(d) Nothing herein 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 or any of its public officials an insured under a policy of insurance, or to create an obligation to pay delinquent property taxes or unpaid liens or expenses other than as provided in this section.
(e) An insurance company making payment of policy proceeds under this section for structure removal liens or removal expenses incurred by the municipal corporation shall have the full benefit of such payment including all rights of subrogation and of assignment.
(f) As used in this section and Ohio R.C. 3929.87, "insurance company" or "insurer'' includes the Ohio Fair Plan Underwriting Association as established in Ohio R.C. 3929.43.
(g) 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. 09-37-2011. Passed 9-6-11.)