§ 4509.08. Fire insurance claims.  


Latest version.
  • (A)

    No insurance company doing business in the state shall pay a claim of a named insured for fire damage to a building or other structure located within the city where the loss agreed to between the named insured or insurers and the company or companies is more than five thousand dollars and equal or exceeds sixty percent of the aggregate limits of liability on all fire policies covering the building or other structure unless there is compliance with Section B and C of this section.

    (B)

    The insurance company or companies in accordance with division (F) of Section 715.26 of the Ohio Revised Code shall transfer from the insurance proceeds to the director of trade and development in the aggregate 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 insurers 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.

    Such transfer of proceeds shall be on a pro rata basis by all companies insuring the building or other structure.

    (C)

    Upon receipt of proceeds by the director as authorized by this section, the development director shall deposit same with the treasurer who shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing, or securing the building or structure incurred by the city pursuant to Section 715.261, of the Ohio Revised Code.

    When transferring the funds as required in this section, an insurance company shall provide the director with the name and address of the named insured or insureds, whereupon the director 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:

    The fund shall be returned to the named, insured or insureds when repairs, or removal, or securing of the building or other structure have been completed and approved by the director, if the city has not incurred any costs for such repairs, removal, or securing. If the city 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 shall transfer the remaining funds to the named insured or insureds. Nothing in this section shall be construed to limit the ability of the city to recover any deficiency under Section 715.261 of the Revised Code.

    Nothing in this section shall be construed to prohibit the city and the named insured or insureds from entering into 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. 377-95.)