Editor's Note: Original Part 1 of Ch. 7, Outdoor Burning,
adopted by Ord. 483, 10/9/1991, as amended, was repealed by Ord. 737,
1/19/2017. Original Part 2 of Ch. 7, Smoke Detectors, adopted by Ord.
361, 3/26/1979, as amended, was repealed by Ord. 737, 1/19/2017. Original
Part 3 of Ch. 7, Outdoor Wood-Burning Boilers, was relocated to Ch.
5, Code Enforcement, Part 5, at the request of the Township.
[Ord. 737, 1/19/2017]
1.
No insurance company, association or exchange (hereinafter the "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to a structure located within the
Township of Warminster where the amount recoverable for the fire loss
to the structure under all policies exceeds $7,500, unless the insurer
is furnished by the Township of Warminster with a certificate pursuant
to Section 508(b) of the Insurance Company Law of 1921 [40 P.S. § 638(b)],
as amended by Act 98 of 1992 and Act 93 of 1994 (collectively, the
"Act"), and unless there is compliance with the procedure set forth
in Section 508(c) and (d) of the Act [40 P.S. § 638(c) and
(d)].
2.
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which the Township of Warminster has incurred as costs for the removal,
repair or securing of a building or other structure on the property
(collectively, "municipal expenses"), the Township Manager of the
Township of Warminster shall immediately render a bill for such work
if he has not already done so.
A.
Upon written request of the named insured specifying the tax description
of the property, the name and address of the insurer and the date
of receipt by the insurer of a loss report of the claim, the Finance
Director shall furnish, within 14 working days after the request to
the insurer, a certificate (or, at his discretion, an oral notification
confirmed in writing) either:
B.
Taxes, assessments, penalties and user charges shall be deemed delinquent for this purpose if a lien could have been filed for such claims under applicable law. Upon receipt of a certification and bill pursuant to Subsection 2A(2) of the preceding subsection, the insurer shall transfer to the Township Finance Director an amount from the insurance proceeds sufficient to pay such sums prior to making payment to the named insured, subject to the provisions of Subsection 3 hereof.
3.
When all municipal claims and municipal expenses have been paid pursuant to Subsection 2 of this section, or where the Township Finance Director has issued a certificate, described in Subsection 2A(1), indicating that there are no municipal claims or municipal expenses against the property, the insurer shall pay the claim of the named insured; provided, however, that if the loss agreed upon by the named insured and insurer equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or structure, the following procedures must be followed:
A.
The insurer shall transfer from the insurance proceeds to the Township
Finance Director, in the aggregate, $2,000 for each $15,000 of such
claim or fraction thereof.
B.
If, at the time a loss report is submitted by the insured, such insured
has submitted to the insurer, with a copy to the Township of Warminster,
a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure in an amount less than
the amount calculated under the foregoing transfer formula, the insurer
shall transfer to the Township Finance Director from the insurance
proceeds the amount specified in the estimate. If there is more than
one insurer, the transfer of proceeds shall be on a pro rata basis
by all insurers, including the building or other structure.
C.
Upon receipt of the above-described portion of the insurance proceeds,
the Township Finance Director shall do the following:
(1)
Place the proceeds in a separate fund to be used solely as security
against the total municipal expenses anticipated by the Township of
Warminster to be required in removing, repairing or securing the building
or structure as required by this chapter. Such costs shall include,
without limitation, any engineering, legal or administrative costs
incurred by the Township of Warminster in connection with such removal,
repair or securing or any proceedings related thereto.
(2)
Mail to the named insured, at the address received from the
insurer, a notice that the proceeds have been received by the Township
of Warminster and that the procedures under this subsection shall
be followed.
(3)
After the transfer, the named insured may submit to the Township
of Warminster a contractor's signed estimate of the costs of
removing, repairing or securing the building or other structure, in
which event the Township Finance Director shall, if such estimate
is deemed by the Finance Director to be reasonable, return to the
insured the amount of the funds transferred to the Township of Warminster
in excess of that required to pay the municipal expenses, provided
that the Township of Warminster has not commenced to remove, repair
or secure the building or other structure, in which case the Township
of Warminster will complete the work.
(4)
Pay to the Township Manager, for reimbursement to the Township
of Warminster general fund, the amount of the municipal expenses paid
by the Township of Warminster.
(5)
Pay the remaining balance in the fund (without interest) to
the named insured upon receipt of a certificate issued by the Code
Enforcement Officer, Building Inspector or other applicable official
of the Township of Warminster that the repair, removal or securing
of the building or other structure has been completed in accordance
with all applicable codes and regulations of the Township of Warminster.
D.
Nothing contained in this section shall be construed to limit the
ability of the Township of Warminster to recover any deficiency in
the amount of municipal claims or municipal expenses recovered pursuant
to this chapter, or to insurance proceeds, by an action at law or
equity to enforce the codes of the Township of Warminster or to enter
into an agreement with the named insured with regard to such other
disposition of the proceeds as the Township of Warminster may deem
reasonable.
4.
Any owner of property, any named insured or insurer who violates
the provisions of this section or who shall fail to comply with any
of the requirements hereof shall be liable, upon summary conviction,
to fines and penalties not exceeding $1,000, which fines and penalties
may be collected by suit or summary proceeding brought in the name
of the Township of Warminster before any Magisterial District Judge
or recovered as debts of the like amount are now by law recoverable.
