[HISTORY: Adopted by the Borough Council of the Borough of
Wilmerding as indicated in article histories. Amendments noted where
applicable.]
[Adopted 7-15-2008 by Ord. No. 999]
From time to time the Borough shall designate the official responsible
for carrying out the duties as are described herein. Such person shall
be the officer designated by the Borough to make certifications, file
claims, etc., and carry out all functions as may be necessary to effectuate
Borough claims pursuant to the legislation referred to hereinabove.
At the present time the Borough hereby designates the Borough Secretary
as the appropriate officer.
A.Â
No insurance company, association or exchange (hereinafter the "insuring
agent") doing business in the Commonwealth of Pennsylvania shall pay
a claim of a named insured for fire damage to a structure located
within Wilmerding Borough (hereinafter the "Borough") where the amount
recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the named insured or insuring agent is furnished
by the Municipal Treasurer with a municipal certificate pursuant to
Section 508(b) of Act 98 of 1992[1] and unless there is compliance with Section 508(c) and
(d) of Act 98 of 1992 and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638(b).
B.Â
Where pursuant to Section 508(b)(1)(i) of Act 98 of 1992[2] the Municipal Treasurer issues a certificate indicating
that there are no delinquent taxes, assessments, penalties or user
charges against real property, the insuring agent shall pay the claim
of the named insured; provided, however, that if the loss agreed upon
by the named insured and the insuring agent equals or exceeds 60%
of the aggregate limits of liability on all fire policies covering
the building, all structures thereon and contents therein, and the
total cost of removal of all debris or damaged contents of such structure,
the following procedures must be followed:
(1)Â
The insuring agent shall transfer from the insurance proceeds to
the Borough Treasurer in the aggregate of $2,000 for each $15,000
of a claim and for each fraction of the amount of a claim; or
(2)Â
If at the time of a proof of loss agreed to between the named insured
and the insuring agent, the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, the insuring agent shall transfer to
the Borough from the insurance proceeds the amount specified in the
estimate.
(3)Â
The transfer of proceeds shall be on a pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
(4)Â
After the transfer, the named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, and the Borough Treasurer shall return
the amount of the funds transferred to the Borough in excess of the
estimate to the named insured, if the Borough has not commenced to
remove, repair or secure the building, its contents or other structure
on the property.
(5)Â
Upon receipt of proceeds under this section, the Borough shall do
the following:
(a)Â
The Borough Treasurer shall place the proceeds in a separate
fund to be used solely as security against the total costs of removing,
repairing, or securing the building, the contents or structure which
are incurred by the Borough. Such costs shall also include, without
limitation, any engineering, legal or administrative costs incurred
by the Borough in connection with such removal, repair or securing
of the building or any proceedings related thereto; and
(b)Â
It is the obligation of the insuring agent when transferring
the proceeds to provide the Borough with the name and address of the
named insured. Upon receipt of the transferred funds and the name
and address of the named insured, the designated officer shall contact
the named insured, certify that the proceeds have been received by
the Borough and notify the named insured that the procedures under
this subsection shall be followed; and
(c)Â
When repairs, removal or securing of the building, the contents
or other structure have been completed in accordance with all applicable
regulations and orders of the Borough and the required proof of such
completion received by the designated officer, and if the Borough
has not incurred any costs for repairs, removal of debris or contents
or securing, the fund shall be returned to the named insured. If the
Borough has incurred costs for repairs, removal of debris or contents
or securing of the building or other structure, the cost shall be
paid from the fund and, if excess funds remain, the Borough shall
transfer the remaining funds to the named insured; and
(d)Â
To the extent that interest is earned on proceeds held by the
Borough pursuant to this section and not returned to the named insured,
such interest shall belong to the Borough. To the extent that proceeds
are returned to the named insured, interest earned on such proceeds
shall be distributed to the named insured at the time that the proceeds
are returned.
(6)Â
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, nothing in this
subsection shall be construed to prohibit the Borough 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.
[2]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
The Borough of Wilmerding may by resolution adopt procedures
and regulations to implement Act 98 of 1992 and this article and may
by resolution fix reasonable fees to be charged for municipal activities
of certificates and bills, performance of inspections and opening
separate fund accounts.
An owner of property, any named insured or any insuring agent
who violates this article shall be subject to a civil penalty of up
to $1,000 per violation.
