01/06/14 In 2013 the City of Plymouth adopted an ordinance which authorizes the City’s participation in the Indiana Department of Insurance’s Insurance Proceeds Set Aside Program. The program provides cities, that specifically elect to be governed by the law certain protections in the event that insurance proceeds are available due to damage to a building in our community caused by fire or explosion.
At the time of final settlement or an eligible insurance claim, the city is provided notice of the settlement and the opportunity to respond to the insurance carrier. In qualifying instances, the City of Plymouth can require a statutorily set percentage of insurance proceeds to be paid to the city and held in escrow for the potential use of demolition, remediation or other unsafe building expenses following any necessary legal action.
This law was designed to provide some level of protection to cities from property owners who might choose to take any insurance proceeds and fail to repair or clean up their damaged property.
Last week the Plymouth City Council passed on second and third readings an ordinance creating the Insurance Proceeds Set Aside Fund so the Clerk Treasurer would have a place to put said funds should insurance funds become available for the City of Plymouth
