[HISTORY: Adopted by the Borough Council of the Borough of Millersville as indicated in article histories. Amendments noted where applicable.]
Fire Company — See Ch. 38.
[Adopted 7-25-1995 by Ord. No. 1995-5]
Insureds, their insurance companies, and the hereinafter designated officer of Millersville Borough are hereby authorized and directed to comply with the following procedures in the event of fire damage to or destruction of buildings or other structures in Millersville Borough:
When the loss agreed to between the named insured and his insurance company or companies, association or exchange (company) equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure, the company shall transfer from the insurance proceeds to designated officers of Millersville in the aggregate of $2,000 for each $15,000 and each fraction of that amount of a claim. However, if, at the time the loss is agreed to between the named insured and the company, the named insured has submitted a contract or signed estimate of the costs of removing, repairing or securing the building or other structure, the company shall transfer from the insurance proceeds the amount specified in the contract or signed estimate to the designated officer of Millersville Borough, along with a copy of the contract or signed estimate. The transfer of proceeds shall be on a pro rata basis by all companies insuring the building or other structure. After the transfer of funds to Millersville Borough, the named insured may submit a contract or signed estimate to Millersville Borough of the costs of removing, repairing or securing the building or other structure, in which case the designated officer shall return the amount of the funds already transferred in excess of the contract or signed estimate to the named insured, provided that Millersville Borough has not already commenced to remove, repair or secure the building or other structure.
Upon receipt of the proceeds by Millersville Borough, the designated officer shall place the proceeds in a separate fund to be used solely as security against the total cost incurred by Millersville Borough for removing, repairing or securing the building or other structure. When transferring the funds, the company shall provide Millersville Borough with the name and address of the named insured. Millersville Borough shall communicate with the named insured and certify that the proceeds have been received by Millersville Borough and shall notify the named insured that the procedures set forth herein shall be followed.
When the building or structure has been removed, repaired or secured and appropriate proof thereof has been received by the designated officer, if Millersville has not incurred any costs for the removal, repair or securing, it shall return the funds to the named insured. If Millersville Borough has incurred costs for removal, repair or securing of the building or other structure, then those costs shall be deducted from the fund, and if any excess funds remain, Millersville Borough shall transfer the remaining funds to the named insured.
Nothing contained herein shall be construed to limit the ability of Millersville Borough to recover any deficiency resulting from the costs incurred by Millersville Borough for the removal, repair or securing of any building or other structure which has been damaged by fire. In addition, nothing contained herein shall be construed to prohibit Millersville Borough and the named insured from entering into an agreement which permits the transfer of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.
The designated officer of Millersville Borough is the Borough Manager or his designee.