Service overview
State and local laws require that the City has funds to repair fire damaged structures and make sure they’re safe. If you make an insurance claim for fire damage to your property, the insurance company must transfer a certain amount of money directly to the Department of Licenses and Inspections (L&I).
These laws apply when an approved insurance claim is greater than $7,500. The amount transferred to the City is:
- $2,000 if the claim is for less than $15,000; or
- $2,000 for every $15,000 of the claim.
The funds are secured in an escrow account. This is a type of account used to hold money until certain conditions are met. The City will send you a check for the balance once you repair, secure, or demolish the fire damaged structure. Otherwise, L&I will use funds from the account to do so.
This process is managed by L&I. Checks are issued by the City Treasurer’s Office.
How
First, the insurance company will identify if there are any taxes or payments owed to the City for the property. These could include Real Estate Taxes, water bills, or abatement bills. If any are owed, the insurance company will pay the balance to the Department of Revenue.
Afterwards, the insurance company will send any remaining funds to L&I to deposit into an escrow account.
L&I will mail you a letter confirming that the funds have been deposited. The insurance company will provide your mailing address.
The letter will include a case number. You’ll use it as a reference number in future communications with L&I.
You’re responsible for all work needed to repair, secure, or remove the fire damaged structure.
You need to get any permits required to work on the structure. A licensed contractor must perform the work and be named on the permit applications.
Use the Permit Navigator to find the permits you need or browse construction and repair permits.
Once all work is complete, request an inspection from L&I’s Emergency Services Unit. Be sure to include your case number on the form.
An L&I inspector will visit the site. They will either:
- Contact you to report any additional repairs or corrections that need to be made to the structure; or
- Confirm that the structure has been repaired, secured, or removed and work is complete.
Once all work is complete and approved by the inspector, L&I will request to release any remaining funds from the escrow account.
Within 4–6 weeks, the City Treasurer’s Office will send you a check for the balance of the account. The check will be mailed to the address provided by the insurance company.
Unsecured structures
If you don’t repair, secure, or demolish the fire damaged structure within a reasonable time frame, L&I will use funds from the escrow account to do so:
If any funds remain after L&I secures the property, the City will send you a check for the balance.
If the cost of the work exceeds the amount in the account, L&I will send you a bill.