[Adopted 1-7-2013 by Ord.
No. 2013-01]
The Township of Washington Zoning Officer or such official's
designee is hereby appointed as the designated officer who is authorized
to carry out all responsibilities and duties stated herein.
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 with the
Township of Washington 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 Treasurer with a certificate pursuant
to § 508(b) of the Insurance Company Law of 1921, as amended
by Act 98 of 1992 and Act 93 of 1994 (collectively, the "Act") and
unless there is compliance with the procedures set forth in § 508(c)
and (d) of the Act.
When all municipal claims and municipal expenses have been paid pursuant to §
183-3, or where the Treasurer has issued a certificate described in §
183-3A 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:
A. 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.
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, 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.
C. Upon receipt of the above-described portion of the insurance proceeds,
the Treasurer 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 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
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 the proceeds have been received by the Township and that
the procedures under this subsection shall be followed.
(3) After the transfer, the named insured may submit to the Township
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 funds transferred to the Township
in excess of that required to pay the municipal expenses, provided
the Township has not commenced to remove, repair or secure the building
or other structure, in which case the Township will complete the work.
(4) Pay to the Zoning Officer for reimbursement to the Township general
fund, the amount of the municipal expenses paid by the Township.
(5) Pay the remaining balance in the fund (without interest) to the named
insured upon receipt of a certificate issued by the Zoning Officer
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.
D. Nothing in this section shall be construed to limit the ability of
the Township 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 or to enter into an agreement with the named
insured with regard to such other disposition of the proceeds as the
Township 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, any 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 shall have
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.
The Secretary of the Township shall transmit a certified copy
of this article promptly to the Pennsylvania Department of Community
and Economic Development.
Any owner of any property, and named insured or insurer of any
person, firm or corporation who shall violate any provision of this
article or who shall fail to comply with any of the requirements hereof,
upon conviction thereof in an action brought before the Magisterial
District Judge in the manner provided for the enforcement of summary
offenses under the Pennsylvania Rules of Criminal Procedure, shall
be sentenced to pay a fine of not less than $200 nor more than $1,000,
plus costs and, in default of payment of said fine and costs, to a
term of imprisonment not to exceed 90 days. Each day that a violation
of this article continues or each section of this article which shall
be found to have been violated shall constitute a separate offense.
The provisions of this article, so far as they are the same
as those of ordinances enforced immediately prior to the enactment
of this article are intended as a continuation of such ordinances
and not as new enactments. The provisions of this article shall not
affect any act done or liability incurred, nor shall it affect any
suit or prosecution pending or to be instituted to enforce any right
or penalty or to punish any offense under the authority of any ordinance
repealed by this article. This article is pursuant to 40 P.S. § 638,
as amended.
The provisions of this article shall be severable, and, if any
of the provisions hereof shall be invalid or unenforceable, the remaining
provisions of this article shall remain in effect.