The city is hereby authorized to utilize the procedure described in W.V. Code §§ 33-17-9a and 33-17-9b whereby 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 refuse, debris, remnants or remains of the dwelling or structure have not been cleaned up, removed or otherwise disposed of and should the municipality provide statutory notice and incur the expense of such clean-up and removal, the insurance company shall pay the proceeds of such policy to the municipality in accord with the statute.
(A) West Virginia Code § 33-17-9a provides notice of claims that the municipality requires and reads as follows:
(1) Upon notice of a claim of an insurance total loss to a structure located in this state, insurance companies must notify the insured, and the municipality or county in which the structure is located, of any coverage in the insurance policy providing cleanup, removal of any refuse, debris, remnants or remains of the dwelling and appurtenances and securing the structure. The notification shall be by letter to the insured, mailed within ten days of the notification of the claim and shall include, but not be limited to:
(a) The terms and limits of coverage designated by the insurance policy for securing cleanup and removal; and
(b) Any time limitations imposed on the insured for securing, cleanup and removal. (See W.V. Code § 33-17-9a.)
(B) West Virginia Code § 33-17-9b provides the process which shall be utilized by the municipality and reads as follows:
(1) (a) No proceeds shall be paid by an insurance company which has issued a policy which provides coverage for debris removal for cleanup, removal of refuse, debris, remnants, or remains of a dwelling or structure upon a claim of total loss unless and until the insurance company receives certification that the refuse, debris, remnants, or remains of the dwelling or structure have been cleaned up, removed or otherwise disposed of. In the event the insurance company receives, within six months of the date of loss, certification that such cleanup, removal or disposal costs have been incurred by a municipality, county or other governmental entity, rather than the policyholder, such debris removal and cleanup proceeds shall be paid to the municipality, county or other government entity which has incurred such costs.
(b) No insurance company subject to this section which complies with this section may be held liable for any claim that may arise out of the cleanup, removal or disposal of debris pursuant to this section.
(c) An insurance company subject to this section which complies with this section shall be deemed to have fully satisfied all contractual obligations to the policyholder regarding debris removal.
(d) In no event shall an insurance company be required to pay moneys in excess of policy limits for debris removal. (See W.V. Code § 33-17-9b.)
(2) Nothing in this section shall be construed to prohibit the municipal corporation 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 and evidenced by a signed agreement between the insured and the municipality.
(3) The Chief Code Official is designated as the officer authorized to carry out the duties of this section pertaining to notice as well as any necessary orders effectuating the cleanup, removal or disposal of dwelling structures subject to the pertinent sections of state code stated herein.
(4) Should the municipality undertake any debris removal or clean-up removal of refuse, debris, remnants, or remains of a dwelling structure occur, at any time, and the cost of such remediation either not be recoverable from the insurance proceeds or be in excess of such proceeds the city shall have the authority to place an assessment lien upon the property in addition to any and all other available civil and criminal legal actions. In the event any expense or costs are incurred pursuant to this section, when any such expense or costs over and above proceeds of any insurance shall be assessed against the real estate. Such assessment shall bear interest at 10% per annum and shall be immediately due and payable. If such assessment is not paid within 30 days after the same is made, the City Clerk may certify the amount of any such assessment with a description of the property chargeable therewith, and the name of the owner thereof, to the Clerk of the County Commission of the county to be recorded in the trust deed books of such Clerk's office; also such assessment shall be and constitute a lien against such property.
(Ord. 1522, passed 4-9-07)
Statutory reference:
Notice of insurance proceeds, see W.V. Code § 33-17-9a
Disbursement of insurance proceeds, see W.V. Code § 33-17-9b