Earle looks at property damage policy

Earle looks at property damage policy

Residents will have to go through formal process to make a claim against the city

news@theeveningtimes.com

Residents who suffer damage to their personal property where the city may be at fault will have to turn in all claims in writing for review before Earle sends them on to their insurance carrier or pays anything on the claim.

City Attorney Davis Loftin presented Earle City Council with a proposed policy for settling claims for damage to personal property after the city was written up by auditors for not having one in place.

Auditors noted that the city paid $976 after a city tractor hit a parked car in an alley, but informed them that the city has some immunity from paying damages and that they need to have a policy to determine when to send claims in to their insurance carrier.

The city recently had a resident claim they damaged their vehicle when they hit a pothole in a city street. Mayor Sherman Smith also witnessed a city mower shoot a rock up while mowing which broke a resident’s window.

“I want you to look it over so we can vote on it,” Smith told the council.

The city has insurance covering the city, elected officials, and employees when claims for damage to personal property alleged to have been caused by the city are made.

Smith noted that in the past the city would pay for damages on a case-by-case basis when the claim was below their deductible and they felt they were at fault.

Claims that were above the deductible which city officials felt were covered by insurance were sent to the insurance carrier for action.

“We used to just pay it,” Smith told the council.

“But we never knew if they would have or would not have. So this was a recommendation by the auditor.”

Under the proposed policy, all claims for damage to personal property made against the city will need to be turned in to the mayor or city clerk in writing.

The mayor — with the advice of other city officials as he deems necessary — will then made a determination if the claim is one that would be covered by insurance. If the claim is found to be one that is covered, the city will then forward it on to the city’s insurance carrier.

If the mayor determines that the claim is not covered by insurance, then the claim will be denied and

the city will send a response in writing explaining the denial. Once the insurance carrier

makes a determination, the city will pay the deductible amount whether the claims exceeds the deductible amount or if it is below the deducible amount.

And in the event insurance carrier denies the claim, the city will forward all documentation as to the reason to the person making the claim.

“If the insurance won’t pay for it, then the city is not responsible for it,” Smith said.

The council will vote to adopt the policy at its December meeting.

By Mark Randall