Iowa SF 557: A bill for an act relating to demolition reserves on fire and casualty claims on real property located within a city and requesting an interim study on such reserves. (Formerly SF 216.)

Bill Text

Senate
File
557
-
Introduced

SENATE
FILE
557

BY
COMMITTEE
ON
COMMERCE

(SUCCESSOR
TO
SF
216)

(COMPANION
TO
HF
225
BY

MOMMSEN)

A
BILL
FOR

An
Act
relating
to
demolition
reserves
on
fire
and
casualty
1

claims
on
real
property
located
within
a
city
and
requesting
2

an
interim
study
on
such
reserves.
3

BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4

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S.F.
557

Section
1.
Section
515.139,
subsection
1,
unnumbered
1

paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
2

An
insurer
shall
reserve
ten

twenty
thousand
dollars
or
ten
3

twenty
percent,
whichever
amount
is
greater,
of
the
payment
for
4

damages
to
the
property
excluding
personal
property
on
which
5

the
insurer
has
issued
a
fire
and
casualty
insurance
policy
as
6

demolition
cost
reserve
if
the
following
are
applicable:
7

Sec.
2.
DEMOLITION
RESERVE
ON
FIRE
AND
CASUALTY
CLAIMS
8

ON
PROPERTY
——
STUDY
REQUEST.
The
legislative
council
is
9

requested
to
establish
an
interim
study
committee
for
the
10

purpose
of
reviewing
section
515.139
to
consider
whether
the
11

statute
adequately
meets
the
needs
of
cities
of
various
sizes
12

and
geographic
locations
within
the
state,
and
reporting
its
13

findings
and
recommendations,
if
any,
to
the
general
assembly.
14

EXPLANATION
15

The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16

the
explanation’s
substance
by
the
members
of
the
general
assembly.
17

This
bill
provides
that
an
insurer
that
has
issued
a
fire
18

and
casualty
insurance
policy
for
the
payment
of
damages
to
19

real
property
located
in
a
city
must
reserve
an
amount
equal
to
20

$20,000
or
20
percent
of
the
payment
for
damages,
whichever
is
21

greater,
as
a
demolition
cost
reserve.
Currently,
the
required
22

amount
is
$10,000
or
10
percent
of
the
payment,
whichever
is
23

greater.
24

A
city
can
claim
proceeds
from
the
reserve
if
the
city
incurs
25

costs
to
demolish
a
building
where
the
damage
to
the
property
26

renders
it
uninhabitable
or
unfit
for
its
purpose,
without
27

repair,
and
proof
of
loss
indicates
that
damage
to
the
insured
28

structure
or
building
exceeds
75
percent
of
the
face
value
of
29

the
policy
covering
the
building
or
structure.
30

The
bill
also
includes
a
request
that
the
legislative
31

council
establish
an
interim
study
committee
for
the
purpose
of
32

reviewing
the
demolition
reserve
statute
to
consider
whether
33

the
statute
adequately
meets
the
needs
of
cities
of
various
34

sizes
and
geographic
locations
within
the
state.
35

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