[HISTORY: Adopted by the Board of Supervisors of the Township of Warwick as indicated in article histories. Amendments noted where applicable.]
[Adopted 3-5-2012 by Ord. No. 2012-1]
No insurance company, association or exchange (hereinafter "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 Warwick where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insurer is furnished by the Warwick Township Treasurer with a certificate pursuant to 508(b) of the Insurance Company Law of 1921 (40 P.S. § 638) (the "Act"), and unless there is compliance with the procedures set forth in 508(c) and (d) of the Act.
Where there are delinquent taxes, assessments, penalties or user charges against the property ("municipal claims"), or there are expenses which the Township of Warwick has incurred as a cost for the removal, repair or securing of a building or other structure on the property (collectively "municipal expenses"), the Manager of the Township of Warwick shall immediately render a bill for such work, if he has not already done so. 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 Treasurer shall furnish, within 14 working days after the request, to the insurer, a certificate (or at his discretion an oral notice confirmed in writing) either:
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 certificate and bill pursuant to Subsection B(1)(a) of this section, the insurer shall transfer to the Treasurer 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.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B(1) of this section, or where the Treasurer has issued a certificate described in Subsection B(1)(a) 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 the 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:
The insurer shall transfer from the insurance proceeds to the Treasurer, in the aggregate, $2,000 for each $15,000 of such claim or fraction thereof.
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 Warwick, 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 Treasurer 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 insuring the building or other structure.
Upon receipt of the above-described portion of the insurance proceeds, the Treasurer shall do the following:
Place the proceeds in a separate fund to be used solely as security against the total municipal expenses anticipated by the Township of Warwick to be required in removing, repairing or securing the building or structure as required by this article. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the Township of Warwick in connection with such removal, repair or securing or any proceedings related thereto; and
Mail to the named insured, at the address received from the insurer, a notice the proceeds have been received by the Township of Warwick and that the procedures under this subsection shall be followed.
After the transfer, the named insured may submit to the Township of Warwick a contractor's signed estimate of the cost of removing, repairing or securing the building or other structure, in which event the Treasurer shall, if such estimate is deemed by the Treasurer to be reasonable, return to the insured the amount of the funds transferred to the Township of Warwick in excess of that required to pay the municipal expenses; provided, the Township of Warwick has not commenced to remove, repair or secure the building or other structure, in which case the Township of Warwick will complete the work.
Pay to the Township Manager, for reimbursement to the Township of Warwick general fund, the amount of the municipal expenses paid by the Township of Warwick.
Pay the remaining balance in the fund (without interest) to the named insured upon receipt of a certificate issued by the Township Manager 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 Warwick.
Nothing in this section shall be construed to limit the ability of the Township of Warwick to recover any deficiency in the amount of municipal claims or municipal expenses recovered pursuant to this article, or to insurance proceeds, by an action at law or in equity to enforce the codes of the Township of Warwick or to enter into an agreement with the named insured with regard to such other disposition of the proceeds as the Township of Warwick may deem responsible.
Nothing in this article 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 article or to make this Township of Warwick, any Warwick Township official, a municipality 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 article.
An insurance company, association or exchange making payment of policy proceeds under this article for delinquent taxes or structure removal liens or removal expenses incurred by the Township of Warwick shall have a full benefit of such payment including all rights of subrogation and of assignment.
This article 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.