(a) No insurance company doing business in the State of Ohio shall pay a claim of a named insured for fire damage to a building or structure located within the Village where the amount recoverable under all applicable policies exceeds five thousand dollars ($5,000), unless the following procedures are followed:
(1) When the loss, agreed to by the insured(s) and the insurance 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 shall transfer to the Fiscal Officer of the Village from the insurance proceeds either:
(2) In the aggregate, two thousand dollars ($2,000) for each fifteen thousand dollars ($15,000) and each fraction of that amount, of a claim, or
(3) If at the time that such loss is agreed to, the named insured(s) have submitted a contractor’s signed estimate of the costs of removing, repairing or securing the building or structure, the amount specified in the estimate.
(b) Proof of payment by any insurance company or companies in compliance with this section is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment made to the Village.
(c) An insurance company making payment of policy proceeds under this section shall have the full benefit of such payment including all rights of subrogation and of assignment.
(d) This section shall not be construed to prohibit the Village and the named insured(s) from entering into an agreement that permits the transfer of funds to the name insured(s) if some other reasonable disposition of the damaged property has been negotiated.
(e) Upon receipt of insurance proceeds as authorized by this section, the Fiscal Officer shall place the proceeds in a separate fund to be used solely as security against the total cost incurred by the Village for removing, repairing or securing a building or structure damaged by fire loss.
(f) When transferring funds to the Village pursuant to this section, an insurance company shall provide the Village with the name and address of the named insured(s). The Village shall then contact the named insured(s), certify that the proceeds have been received by the Village and notify them that the following procedures shall be followed:
(1) The funds shall be returned to the named insured(s) no later than sixty (60) days after the Fiscal Officer receives proof that repairs, removal or securing of the building or structure has been completed, provided that the Village has not incurred any costs for such repairs, removal or securing.
(2) If the Village has incurred any costs for repairs, removal or securing of the building or structure, the costs shall be paid from the fund, and if excess funds remain, the Village shall transfer the remaining funds to the insured(s) no later than sixty (60) days after all such costs have been paid.
(g) Nothing in this section shall be construed to limit the ability of the Village to recover any deficiency under Ohio R.C. 715.261.
(Ord. 27-2007. Passed 9-6-07.)