Current through Register Vol. 54, No. 45, November 9, 2024
Section 117.94 - Insurance(a) When requested, the municipality shall maintain the following types and amounts of insurance from insurers approved by the Department, and shall provide the Department with evidence of a valid policy of insurance naming the Department as a co-payee: (1) Construction coverage. (i) Worker's compensation insurance and employer's liability insurance.(ii) Combined coverage, comprehensive general liability insurance and owner's protective liability insurance.(iii) Builder's risk on the project and the improvements including the materials, equipment and other personal property located on the mortgaged property which are used or intended to be used in the project and the improvements; with extended coverage, vandalism and malicious mischief; and with no more than a $250 deductible provision for all losses.(b) Policies issued shall contain standard mortgagee clauses making losses thereunder payable to the Department, the municipality and other mortgage holders. Policies or copies shall be deposited with the Department. Within 30 days prior to the expiration date of each of the policies, the municipality shall deliver to the Department satisfactory evidence of the renewal of each of the policies.(c) In the event of loss or injury to the mortgage property, the municipality shall give immediate notice to the Department of the estimated monetary amount of the loss. The municipality shall make prompt proof of loss and furnish copies to the Department. The Department may make proof of loss if not made promptly by the municipality. A concerned insurer shall be authorized and directed by the municipality to make payment for the loss or injury to the Department and other mortgage holders jointly. The insurance proceeds or a part may be retained and applied by the Department toward payment of a loan outstanding by the Department to the municipality in priority and proportions as the Department deems proper. At the option of the Department, the proceeds may be applied or paid in whole or in part toward the restoration or repair of the damaged property, or for other purposes and upon conditions the Department designates.The provisions of this §117.94 adopted August 21, 1992, effective 8/22/1992, 22 Pa.B. 4315.The provisions of this §117.94 issued under section 7 of the Local Government Capital Project Loan Fund Act (53 P. S. § 6781-7).