Tax & Demolition Document Processing

TAX PORTION

Illinois Insurance Code 215 ILCS 3/397.1:

(215 ILCS 5/397.1) Sec. 397.1. Certificate regarding payment of taxes and expenses on property sustaining loss. Says (a) ”It shall be unlawful for any company contracting insurance business in this State to pay a claim of an insured property owner for loss by fire or explosion to a structure located in this State where the amount recoverable for loss to the structure under a policy exceeds $25,000.00, until the insurance company receives the certificate required by this Section. A notice, to the State’s Attorney of the county where the structure is located, of the insurers intent to pay a claim shall include the name of the property owner, the address of the property, its legal description, the permanent real estate index number that identifies the property for purposes of taxation, and the amount of the claim to be paid.”

DEMOLITION PORTION

In addition to the above, every Township, City and County in the State of Illinois will perform an inspection determining the cost to raze a building in the event the property owner chooses to forego the repair process. 

Both of the above are tedious processes.  We provide a service where we will handle the entire process with no stress put upon the property owner.  Whether it may be a current client, or someone that needs assistance through the process, we can help.

Tax and Demolition Document Processing by Michaelson & Messinger Insurance Specialists, LLC

Few property owners know this until it happens to them. After a serious fire in Illinois, the municipality where the building sits has the right to protect itself against the cost of tearing the building down. Every township, city, and county in the state will inspect the property and determine what it would cost to raze the structure if the owner walks away. Illinois law then allows the municipality to claim that amount from the fire insurance proceeds, and the carrier will hold that money until the municipality releases it.

What This Means for Your Claim

A portion of your settlement, sometimes a large one, does not come to you. It sits with the carrier or the municipality until you prove the building will be repaired, or until the demolition is complete and paid for. If nobody handles the paperwork, the money sits there for months and the rebuild stalls for lack of funds. Michaelson & Messinger has processed these releases with municipalities across Cook, DuPage, and Will counties and the City of Chicago for years.

What We Do

• Coordinate the municipal inspection and obtain the demolition cost determination
• Prepare and file the documents the municipality requires to release its claim on the proceeds
• Provide the repair contract, permit application, and schedule that show the building will be restored
• Handle the City of Chicago Department of Buildings process, including demolition court when a case has been filed
• Obtain the release letter and deliver it to the carrier so the held funds are paid
• When the owner chooses not to rebuild, coordinate the demolition and the payment so the balance is released

Property Tax After a Fire

A building that has been destroyed or made uninhabitable may qualify for a property tax reassessment for the time it is unusable. We prepare the documentation the county assessor requires so you are not paying full taxes on a building you cannot use.

Included With Our Fire Adjusting

This service is part of every total loss fire claim we adjust. It is one of the reasons our clients rebuild faster than owners who handle the claim alone. We can also be hired separately if your claim is already settled and the funds are stuck. Call 630.654.2600. The consultation is free.