Township of Manheim, PA Fire Insurance Claims

Insured, their insurance companies, and the hereinafter designated officer of Manheim Township are hereby authorized and directed to comply with the following procedures in the event of fire damage to or destruction of buildings or other structures in Manheim Township:

When the loss agreed to between the named insured and his insurance company or companies, association or exchange (company) equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure, the company shall transfer from the insurance proceeds to the designated officer of Manheim Township in the aggregate $2,000 for each $15,000 and each fraction of that amount of a claim. However, if, at the time the loss is agreed to between the named insured and the company, the named insured has submitted a contract or signed estimate of the costs of removing, repairing, or securing the building or other structure, in an amount less than the amount calculated under the foregoing transfer formula, the company shall transfer from the insurance proceeds the amount specified in the contract or signed estimate to the designated officer of Manheim Township, along with a copy of the contract or signed estimate. The transfer of proceeds shall be on a pro rata basis by all companies insuring the building or other structure. After the transfer of funds to Manheim Township, the named insured may submit a contract or signed estimate to Manheim Township of the costs of removing, repairing, or securing the building or other structure, in which case the designated officer shall return the amount of the funds already transferred in excess of the contract or signed estimate to the named insured, provided that Manheim Township has not already commenced to remove, repair, or secure the building or other structure.[1]

[1]

Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II).

Upon receipt of the proceeds by Manheim Township, the designated officer shall place the proceeds in a separate fund to be used solely as security against the total cost incurred by Manheim Township for removing, repairing, or securing the building or other structure. When transferring the funds, the company shall provide Manheim Township with the name and address of the insured and certify that the proceeds have been received by Manheim Township and shall notify the named insured that the procedures set forth herein shall be followed.

When the building or other structure has been removed, repaired, or secured and appropriate proof thereof has been received by the designated officer, if Manheim Township has not incurred any costs for the removal, repair, or securing, it shall return the fund to the named insured. If Manheim Township has incurred costs for removal, repair, or securing of the building or other structure, then those costs shall be deducted from the fund, and if any excess funds remain, Manheim Township shall transfer the remaining funds to the named insured.

Nothing contained herein shall be construed to limit the ability of Manheim Township to recover any deficiency resulting from the costs incurred by Manheim Township for the removal, repair, or securing of any building or other structure which has been damaged by fire. In addition, nothing contained herein shall be construed to prohibit Manheim Township and the named insured from entering into an agreement which permits the transfer of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.