02-25-2015 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: alum. Suit § n5:\.50. subd>. 0. n. Minn. Slat. ° 6$:\.i0. subd. 10. 11 inn. Slat C (I5:\Sp.>ubd. r. ialum. Slat. 6 (SA.SO, subd. 2. The final settlement amount cannot include the payment of policy proceeds ibr personal property or contents damage, or for additional coverage not contained in the fire coverage portion of the fire insurance policy. Further, this process applies only to final settlements that exceed 49 percent of the insurance on the insured real property. The requirement to withhold portions of the insurance settlement proceeds does not apply if all of the following conditions occur: • Within 30 days after agreement on a final settlement between the insured and the insurer, the insured has filed with the insurer evidence of' a contract to repair. • The insured consents to the payment of funds directly to the contractor performing the repair services. e Upon receiptof the contract to repair, the insurer gives notice to the municipality in which the property is situated that there will not be a withholding under this section because of the repair contract. Funds released under these circumstances may be forwarded only to a contractor performing the repair services on the insured property. if the insured and the insurer have agreed on the demolition costs or the debris removal costs as part of the final settlement of the real property insured claim, the insurer shall withhold the largest of' the following sums: e The agreed cost of demolition or debris removal. e 'T'wenty-five percent of the actual cash value of the insured real property at the lime of loss. e Twenty-five percent of the final settlement of the insured real property claim. At the time funds are withheld, the insurer must give notice of the withholding to the treasurer of' the city where the property is located, the insured, and any bank or lender that has a lien on the property and that is named on the insurance policy. If the settlement resulted from a court judgment, notice must also be provided to the court where the judgment was entered. The notice must include: • The identity and address of the insurer. e The name and address of each policyholder, including any bank or lender that holds a mortgage on the property. • The location of the insured real property. e The date of loss, policy number, and claim number. e The amount of money withheld. League of Minnesota Cities Information Memo: 6124/2013 Dangerous Properties Page 7 6