[HISTORY: Adopted by the Borough Council of the Borough of
Kittanning as indicated in article histories. Amendments noted where
applicable.]
[Adopted 3-6-2006 by Ord.
No. 436-2006]
No insurance company, association or exchange doing business
in the commonwealth shall pay a claim of a named insured for fire
damage to a structure located within Kittanning Borough, where the
amount recoverable for the fire loss to the structure under all policies
exceeds $7,500, except upon the furnishing of a certificate pursuant
to the provisions of this article and except when compliance with
the provisions of this article with respect to posting security to
assure restoration or demolition of structures is complied with.
Upon written request of an insurance company, association, or
exchange doing business in this commonwealth, said request including
the named insured, the tax description of the property, the name and
address of the insurance company, association or exchange, and the
date agreed upon by the insurer and the named insured as the date
of the receipt of a lost report, the Borough shall within 14 days
issue a certificate and bill showing the amount of any 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 Treasurer's certificate, the amount of the total costs, if
any, certified to the Treasurer that have been incurred by the municipality
for the removal, repair, or securing of a building or other structure
on the property.
Upon receipt of a certificate issued pursuant to the provisions
hereinabove, 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 the municipality shall follow
the procedures hereinafter set forth.
Upon receipt of the certificate and bill provided by the Treasurer
as hereinabove set forth, the insurance company, association or exchange
shall return the bill to the Treasurer and transfer to the Treasurer
an amount from the insurance proceeds necessary to pay the taxes,
assessments, penalties, charges and costs as shown in the bill, and
the municipality, upon receipt thereof, shall apply or credit said
payment to 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 Borough Codes Enforcement Officer, in
the aggregate, $2,000 for each $15,000, and each fraction thereof,
if at the time of a loss report the named insured has submitted 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 said formula, in which case the insurance
company, association, or exchange shall transfer from the insurance
proceeds the amount specified in the estimate. Any policy proceeds
remaining after the transfer to the municipality in accordance with
the formula set forth herein 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 structure after the transfer, and the Codes Enforcement
Officer shall return the amount of the fund in excess of the estimate
to the named insured if the Borough has not commenced to remove, repair
or secure the building or other structure.
Upon receipt of proceeds by the Codes Enforcement Officer, said
proceeds shall be placed in a separate fund to be used solely as security
against the total cost of removing, repairing or securing said structure
as might be incurred by the Borough. The insurance company, association,
or exchange, upon transferring the funds to the Borough, shall provide
the Borough with the name and address of the named insured and upon
said notification the Borough, through the Codes Enforcement Officer,
shall contact the named insured and certify that the proceeds have
been received by the Borough and shall notify the named insured of
the procedures under this section to be followed. The funds shall
be returned to the named insured when all required repairs, removal
or securing of the building or other structure have been completed
and the required proof received by the Codes Enforcement Officer,
if the Borough has not incurred any cost for repairs, removing or
securing. If the Borough has incurred costs for repairs, removal 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. Nothing contained herein
shall limit the ability of the Borough to recover any deficiency between
the amounts received and the actual costs incurred by the Borough
for repairs, removal or securing of the building or other structure.
In addition, the municipality acting through the Codes Enforcement
Officer, and the named insured, may enter into an agreement that permits
the transfer of funds to the named insured if some other reasonable
disposition of the damaged property has been made.
