(a) No insurance company doing business in the State of Ohio shall pay a claim of a named insured for fire damage for a structure located within the Village where the amount recoverable for the fire loss to the structure under all insurance policies exceeds five thousand dollars and is greater than or equal to sixty percent (60%) of all fire insurance policy monetary limitations unless there is compliance with the following procedures:
(1) When the loss agreed to between the named insured or insureds and the insurance company or companies equals or exceeds sixty percent (60%) of the aggregate limits of liability of all fire policies covering the building or structure, the insurance company or the companies in accordance with Ohio Revised Code 715.26(F) and 3929.86(C) and (D) shall transfer from the insurance proceeds to the Director of Finance in the aggregate amount of two thousand dollars ($2,000.00) for each fifteen thousand dollars ($15,000.00), 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 have submitted a contractor's signed estimate of the costs of removing, repairing, or securing the building the building or other structure, shall transfer from the insurance proceeds the amount specified in the estimate.
Such transfer of the estimate shall be on a pro-rata basis by all companies insuring the building or structure. Policy proceeds remaining after the transfer to the Village may be disbursed in accord with the terms of the policy.
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, after notifying the Manager, shall return the amount of the fund in excess of the estimate to the named insured or insureds, provided that the Village has not commenced to remove, repair or secure the building or other structure.
(2) Upon receipt of the proceeds by the Village 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 Village, pursuant to Ohio Revised Code 715.261.
When transferring the fund as required in subsection (a)(1) hereof, an insurance company shall provide the names and addresses of the named insured or insureds, whereupon the Village shall contact the named insured or insureds, certify the proceeds have been received by the Village and notify them the following procedures will be followed:
The fund shall be returned by the Finance Director 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 is received by the Manager, provided that the Village has not incurred any costs for the repairs, removal, or securing of the building or other structure. If the Village has incurred any costs for the repairs, removal or securing the building or other structure such costs shall be paid from the funds remaining, the Village of Sebring shall transfer the remaining funds to the named insured or insureds after repair, rebuilding or removal has been completed.
Nothing in this section shall be construed to limit the ability of the Village to recover any deficiency under Ohio Revised Code. Nothing in Ohio Revised Code 3929.86(C) and (D) adopted hereby shall be construed to prohibit the Village 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 can be negotiated.
(b) The Finance Director is designated as the officer authorized to carry out the duties of this section, provided that no funds so held under this section shall be released without notice to the Manager.
(Ord. 22-2020. Passed 5-11-20.)