The City is hereby authorized to utilize the procedure described in Ohio RC. 3929.86(C) and (D), 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 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) When the loss agreed to between the named insured or insureds 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 Ohio RC. 715.26(F), shall transfer the insurance proceeds to the Code Official in the ratio specified by Ohio RC. 3986.29(C). If, at the time of a proof of loss agreed to between the named insured or insureds and the insurance company or companies, the name insured or insureds have submitted a contractor's signed estimate of costs of removing, repairing or securing the building or other structure, the insurance company or companies 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 costs of removing, repairing or securing the building or other structure after the transfer, and the Code Official 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.
(Ord. 4-1997. Passed 6-6-97; Eft. 2-6-97.)
(b) Upon receipt of the proceeds by the City as authorized by this section, the Code Official 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.
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 procedure will be followed. The fund shall be returned to the named insured or insureds when repair, removal or securing of the building or other structure has been completed and the required proof received by the Code Official, if the City has not incurred any costs for such repair, removal or securing. If the City has incurred any costs for repair, 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 the City to recover any deficiency under Ohio R.C. 715.261.
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.
(Ord. 122-1988. Passed 5-16-88; Ord. 26-2022. Passed 3-7-22.)