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 insurance policies exceeds $5,000 and is greater than or equal to 60% of all fire insurance policy monetary limitations unless there is compliance with the following procedures:
(a) When the loss agreed to between the named insured or insureds and the insurance company or insurance companies equals or exceeds 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 Finance Director in the aggregate amount of $2,000 for each $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 costs of removing, repairing, or securing the building or other structure, shall transfer from the insurance proceeds the amount specified in the estimate.
(1) Such transfer of proceeds shall be on a pro rata basis by all companies insuring the building or structure. Policy proceeds remaining after the transfer to the City may be disbursed in accordance with the policy terms.
(2) 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 Finance Director 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) Upon receipt of proceeds by the City 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 pursuant to Ohio R.C. 715.261.
(1) When transferring the fund as required in this section, 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:
A. The fund shall be returned by the Finance Director to the named insured or insureds when repairs, removal or securing of the building or other structure have been completed no later than 60 days after the required proof is received by the Finance Director, provided that the City has not incurred any costs for those repairs, removal, or securing.
B. If the City has incurred any costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund, and if excess funds remain, the City shall transfer, no later than 60 days after all such costs have been paid, the remaining funds to the named insured or insureds after repair, rebuilding, or removal has been completed.
(2) Nothing in this section shall be construed to limit the ability of the City to recover any deficiency under Ohio R.C. 715.261.
(3) Nothing in Ohio R.C. 3929.86(C) and (D), 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. 052-07. Passed 7-2-07.)
(Ord. 052-07. Passed 7-2-07.)