AB 826

Current law provides a process whereby an insurer may withhold a portion of

property insurance proceeds that are payable to an insured for damage by fire or

explosion to insured property located in a first class city (Milwaukee), excluding

one-family and two-family dwellings that are occupied by the named insured. The

insurer, after notice and other requirements are satisfied, may pay to the city of

Milwaukee (city) from the withheld proceeds funds to reimburse the city for expenses

incurred to demolish the damaged insured property or abate a nuisance with respect

to the insured property. The insurer may pay the proceeds to the city only if the

insured does not repair or replace the damaged portions of the insured property and

the city, within 90 days after notice from the insurer, either: 1) commences an action

or proceeding relating to demolition of the property or abatement of a nuisance with

respect to the property; or 2) obtains a release from the insured consenting to

demolition of the damaged structure. This bill expands this process for withholding

insurance proceeds for reimbursement of expenses to real property located in any

city or village in the state.