(a) No insurance company doing business in the State of Ohio shall pay a claim of the named insured for fire damage to a structure located within the territorial limits of the City of Uhrichsville, Ohio where the amount recoverable for the fire loss to the structure under all insurance policies exceeds five thousand dollars ($5,000.00) 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 and the insurance or insurance 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 the entire insurance proceeds to the City of Uhrichsville, Ohio, or, if at time of a proof of loss agreed to between the named insured and the insurance company or companies, the named insured have submitted a contractor’s signed estimate of the costs of removing, repair or securing the building or other structure, shall transfer from the insurance proceeds the amount specified in such estimate.
(2) Such transfer of proceeds shall be on a pro-rate basis by all companies insuring the building or structure. Policy proceeds remaining after the transfer to the City of Uhrichsville, Ohio shall be distributed in accordance with the insurance policy terms.
(3) The named insured may submit a contractor’s signed estimate of the costs of removing or repairing or securing the building or other structure after the transfer, and the City of Uhrichsville, Ohio shall return the amount of the fund in excess of the estimate to the named insured, providing that the City of Uhrichsville, Ohio has not commenced to remove, repair or secure the building or other structure.
(4) Upon receipt of insurance proceeds by the City of Uhrichsville, Ohio as authorized by this section, the City of Uhrichsville, Ohio 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 of Uhrichsville, Ohio.
(5) When transferring the fund as required by this section, an insurance company shall provide the City of Uhrichsville, Ohio with the name and address of the named insured where upon the City of Uhrichsville, Ohio shall contact the named insured, certify that the insurance proceeds have been received by the City of Uhrichsville, Ohio, and notify the named insured that the following procedures will be followed: The fund shall be returned by the City of Uhrichsville, Ohio to the named insured when repairs, or removal of the building or other structures have been completed, approved by the Fire Chief and City Service Director, provided that the City of Uhrichsville, Ohio has not incurred any costs for such repairs, removal, or securing. If the City of Uhrichsville, Ohio has incurred any costs for repairs, removal or securing of the building or other structure, such costs shall be paid from the fund and if excess funds remain, the City of Uhrichsville, Ohio shall transfer the remaining funds to the named insured after repair, rebuilding or removal has been completed. Nothing in this section shall be construed to limit the ability of the City of Uhrichsville, Ohio to recover any deficiency.
(b) The Auditor of the City of Uhrichsville, Ohio is hereby designated as the officer authorized to carry out the duties of this section.
(c) Nothing in this section shall be construed to prohibit the City of Uhrichsville, Ohio and the named insured from entering into an agreement that permits the transfer of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.
(Ord. 10-20. Passed 5-28-20.)
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