CHAPTER 11
INSURANCE PROCEEDS FROM BUILDING DAMAGE

SECTION:

1-11-1: Scope And Application

1-11-2: Lien Created

1-11-3: Encumbrances

1-11-4: Pro Rata Basis

1-11-5: Procedure

1-11-6: Fund Created; Deposit Of Monies

1-11-7: Building Inspector; Investigation, Removal Of Structure

1-11-8: Removal Of Structure; Excess Monies

1-11-9: Disposition Of Funds

1-11-10: Effect Upon Insurance Policies

1-11-11: Insurers' Liability

1-11-1: SCOPE AND APPLICATION:

The city is hereby authorized to utilize the procedures established by Kansas Statutes Annotated 40-3901 et seq., whereby no insurance company shall pay a claim of a named insured for loss or damage to any building or other structure located within the city, arising out of any fire, explosion, or windstorm, where the amount recoverable for the loss or damage to the building or other structure under all policies is in excess of seventy five percent (75%) of the face value of the policy covering such building or other insured structure, unless there is compliance with the procedures set out in this chapter. (Ord. 1081, 1-21-2008)

1-11-2: LIEN CREATED:

The governing body of the city hereby creates a lien in favor of the city on the proceeds of any insurance policy based upon a covered claim payment made for damage or loss to a building or other structure located within the city, caused by or arising out of any fire, explosion, or windstorm, where the amount recoverable for all the loss or damage to the building or other structure under all policies is in excess of seventy five percent (75%) of the face value of the policy(ies) covering such building or other insured structure. The lien arises upon any unpaid tax, special ad valorem levy, or any other charge imposed upon real property by or on behalf of the city which is an encumbrance on real property, whether or not evidenced by written instrument, or such tax, levy, assessment, expense or other charge that has remained undischarged for at least one year prior to the filing of a proof of loss. (Ord. 1081, 1-21-2008)

1-11-3: ENCUMBRANCES:

Prior to final settlement on any claim covered by section 1-11-2 of this chapter, the insurer or insurers shall contact the county treasurer, Scott County, Kansas, to determine whether any such encumbrances are presently in existence. If the same are found to exist, the insurer or insurers shall execute and transmit in an amount equal to that owing under the encumbrances a draft payable to the county treasurer, Scott County, Kansas. (Ord. 1081, 1-21-2008)