[Adopted 9-15-1998 by Ord. No. 2-98]
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 Cross Creek Township where the amount recoverable for the 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 §
179-2 of this article and unless there is compliance with the procedures set forth in §§
179-3 and
179-4 of this article.
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 designated officer of Township Treasurer
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 the 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 structure after the transfer, and the Township Treasurer
shall return the amount of the fund in excess of the estimate to the
named insured if the Township has not commenced to remove, repair
or secure the building or other structure.
[Amended 9-19-2006 by Ord. No. 6-06]
Upon receipt of proceeds by the Township as authorized by this article, the Township Treasurer 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 the Township. When transferring the funds as required in §
179-3 of this article, an insurance company, association or exchange shall provide the Township with the name and address of the named insured, whereupon the Township shall contact the named insured, certify that the proceeds have been received by the Township and notify the named insured that the procedures under this subsection shall be followed. Thereafter, the owner of such building or other structure shall cause the structure to be repaired so as to come into compliance with the Township's Building Code, or in the alternative, razed and removed such that the structure will not continue to exist in a dilapidated, damaged or otherwise dangerous condition within 90 days of the damage occurring to such structure and/or building. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the Township Treasurer if the Township has not incurred any costs for repairs, removal or securing. If the 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, the Township shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the Township to recover any deficiency nor to prohibit the 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.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
A certified copy of this article shall be filed with the Commonwealth
of Pennsylvania, Department of Economic and Community Development
(or such other agency of the commonwealth as may hereafter pertain)
together with the name, position and telephone number of the Township
official responsible for compliance with this article.