Ontwa enters into insurance withholding program

Published 10:03 am Thursday, November 16, 2017

ONTWA TOWNSHIP — Fire insurance will now look a little different in Ontwa Township, thanks to a resolution passed by the Ontwa Township Board of Trustees.

At the trustees’ Monday meeting, the group voted to enter into a fire insurance withholding program.

“What this resolution would basically state is that, let’s say there is a fire in Ontwa Township, and the insurance is looking to pay out to the homeowner to rebuild the house or whatever they were going to do with it, a percentage of that would be set aside to the township to be put in a special fund, an escrow, until a certain percentage of the work is done,” said Clerk Tina VanBelle when explaining the resolution. “What this prevents is, if a house burns, people just getting the insurance and walking away, leaving the damaged property to the township, or someone in the township, to clean up. This way, there is money set aside to deal with that.”

VanBelle clarified that once a percentage of the cleanup or restoration work is done, the rest of the insurance money would be released to the homeowner.

Most other townships in Cass County are already participating in the fire insurance withholding program, which is what led Ontwa Township to consider entering into the program, VanBelle said.

The resolution also favors the public safety and health of Ontwa Township residents, by dealing with properties that violate Ontwa Township health and safety standards, VanBelle added.

While some trustees expressed confusion about the practicality or the necessity of entering the program, Township Treasurer Meryl Christensen cited a several years old case, where a woman in Ontwa Township abandoned her property after it burned down and she received her insurance money. Someone in the township then had to track the woman down and convince her to demolish the rest of the property.

“She was just going to take the money and leave,” Christensen said of the woman in the case. “This would prevent that from happening, or if we had $2,500 in an escrow account, we could have hired someone to do that [demolition work].”

After a short discussion, the board passed the resolution.

In other business:

•The board of trustees voted to create an Ad Hoc committee to search for a new wastewater administrator, following the departure of former wastewater administrator John Harsh. Township Supervisor Jerry Marchetti said he has high hopes for the new administrator after seeing the applications that have already been submitted for the position.

•The board of trustees approved the purchase of speed signs to be placed on Christianna Lake Road, reducing the speed limit to 45 miles per hour. The project will cost $1,200. The cost of the project will be split with Mason Township, with whom Ontwa Township shares Christianna Lake Road.