§ 505.170. Insurance Proceeds.

A. 

If there are proceeds of any insurance policy based on a covered claim payment for damage or loss to a building arising out of or caused by fire, explosion or other casualty loss, and the covered claim payment exceeds fifty percent (50%) of the face value of the policy covering such building, then the insurer shall pay to the City Clerk a sum equal to twenty-five percent (25%) of the covered claim, within thirty (30) days of the determination of coverage, to be held by the City in an interest-bearing account. The proceeds shall be used to reimburse the City for its costs in the removal of such building, if necessary.

B. 

The City shall release the proceeds paid to it pursuant to Subsection (A) of this Section to the insured or in accordance with the provisions of the insurance policy and endorsements thereto as directed by the insurer unless within thirty (30) days after receipt of the insurance proceeds the Building Inspector has issued a Notice and Order pursuant to this Chapter. And the City shall retain such proceeds until the conditions cited in the Notice and Order are abated.

C. 

The City shall apply the insurance proceeds first to the cost of the removal of any building found to be a nuisance under this Chapter, less any salvage value, prior to the expenditure of any City funds. Should any balance of insurance proceeds remain in the interest-bearing account after the expense of removal of such building has been paid, the balance shall be paid over to the insured.

D. 

Nothing in this Section shall be construed to affect the priority of a named mortgagee on the insurance policy to the proceeds of the policy.

E. 

It shall be a violation of this Code for an insurance carrier to fail to pay insurance proceeds to the City after being notified pursuant to this Chapter.

Ord. No. 975, 6-1-2017