Township of Chartiers, PA Fire Insurance Claims

No insurance company, association or exchange doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within the Township of Chartiers where the amount recoverable for fire loss to the structure under all policies exceeds $7,500 unless the insurance company, association or exchange is furnished with a certificate pursuant to Subsection B of this section and unless there is compliance with the procedures set forth in Subsections C and D of this section.

Elected real estate tax collector to issue certificate or certificate and bill.

(1)

The elected real estate tax collector shall, upon the written request of the named insured, specifying the tax description of the property, name and address of the insurance company, association or exchange and the date agreed upon by the insurance company, association or exchange and the named insured as the date of the receipt of a loss report of the claim, furnish the insurance company, association or exchange either of the following within 14 working days of the request:

(a)

A certificate or, at the discretion of Chartiers Township, a verbal notification which shall be confirmed in writing by the insurer to the effect that, as of the date specified in the request, there are no delinquent taxes, assessments, penalties or user charges against the property and that, as of the date of the elected real estate tax collector's certificate or verbal notification, Chartiers Township has not certified any amount as total costs incurred by Chartiers Township for the removal, repair or securing of a building or other structure on the property; or[1]

[1]

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

(b)

A certificate and bill showing the amount of delinquent taxes, assessments, penalties and user charges against the property as of the date specified in the request that have not been paid as of the date of the certificate and also showing, as of the date of the elected real estate tax collector's certificate, the amount of the total costs, if any, certified to the elected real estate tax collector that have been incurred by Chartiers Township for the removal, repair or securing of a building or other structure on the property. For the purposes of this Subsection B(1)(b), Chartiers Township shall certify to the elected real estate tax collector the total amount, if any, of such costs. A tax, assessment, penalty or user charge becomes delinquent at the time and on the date a lien could otherwise have been filed against the property by Chartiers Township under applicable law.

(2)

Payment of claim or return of bill and transfer of proceeds to Township.

(a)

Upon the receipt of a certificate pursuant to Subsection B(1)(a) of this section, the insurance company, association or exchange shall pay the claim of the named insured in accordance with the policy terms, unless the loss agreed to between the named insured and the company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure. In the case of such a loss, the insurance company, association or exchange, the insured property owner and Chartiers Township shall follow the procedures set forth in Subsections C and D of this section.

(b)

Upon the receipt of a certificate and bill pursuant to Subsection B(1)(b) of this section, the insurance company, association or exchange shall return the bill to the elected real estate tax collector and transfer to the elected real estate tax collector an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. Chartiers Township shall receive the amount and apply or credit it to payment of the items shown in the bill.

When the loss agreed to between the named insured and the company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure, the insurance company, association or exchange shall transfer from the insurance proceeds to the Chartiers Township elected real estate tax collectors in the aggregate $2,000 for each $15,000 and each fraction of that amount of a claim, or if at the time of a loss report the named insured has submitted a contractor's 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 insurance company, association or exchange shall transfer from the insurance proceeds the amount specified in the estimate. The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure. Policy proceeds remaining after the transfer to Chartiers Township shall be disbursed in accordance with the policy terms. The named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or other structures after the transfer, and the Chartiers Township designated officer shall return the amount of the fund in excess of the estimate to the named insured if Chartiers Township has not commenced to remove, repair or secure the building or other structure.

Upon receipt of proceeds by Chartiers Township as authorized by this section, the designated officer 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 Chartiers Township. When transferring the funds as required in Subsection C of this section, an insurance company, association or exchange shall provide the Township of Chartiers with the name and address of the named insured, whereupon Chartiers Township shall contact the named insured, certify that the proceeds have been received by Chartiers Township and notify the named insured that the procedures under this subsection shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure has been completed and the required proof received by the designated officer if Chartiers Township has not incurred any costs for repairs, removal or securing. If Chartiers Township has incurred costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund, and if excess funds remain, Chartiers Township shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of Chartiers Township to recover any deficiency. Further, nothing in this subsection shall be construed to prohibit Chartiers Township 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.

Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with Subsection C of this section is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with Subsection C of this section.

Nothing in this section shall be construed to make an insurance company, association or exchange liable for any amount in excess of proceeds payable under its insurance policy or for any other act performed pursuant to this section or to make Chartiers Township or public official an insured under a policy of insurance or to create an obligation to pay delinquent property taxes or unpaid removal liens or expenses other than as provided in this section.

An insurance company, association or exchange making payments of policy proceeds under this section for delinquent taxes or structure removal liens or removal expenses incurred by Chartiers Township shall have a full benefit of such payment, including all rights of subrogation and of assignment.

This section shall be liberally construed to accomplish its purpose to deter the commission of arson and related crimes, to discourage the abandonment of property and to prevent urban blight and deterioration.