Why Is The City of Eureka Withholding 15% Of Some Insurance Proceeds?

Recent discussions on Facebook and within the community have sparked an interest in a city ordinance that allows the City of Eureka to withhold 15 percent of a homeowner’s insurance check in the event of a disaster.

City Ordinance 3949 outlines that when events such as fire or windstorm cause damage in excess of 75 percent of the face value of the insurance policy covering the structure, the insurance company “shall execute a draft payable to the city treasurer in an amount equal to the sum of 15 percent of the covered claim payment unless the chief building inspector of the city has issued a certificate to the insurance company or companies that the insured has removed the damaged building or other structure, as well as all associated debris or repaired, rebuilt, or otherwise made the premises safe and secure.”

 

To read more please log in or subscribe to the digital edition https://etypeservices.com/Eureka%20HeraldID679/

The Eureka Herald

PO Box 590

Eureka, KS 67045

Phone: 620-583-5721

Fax: 620-583-5922