If there is a covered fire and explosion loss exceeding $25,000 to a structure in Illinois, what must the insurer obtain before settling the claim?

In the context of handling claims for covered fire and explosion losses in Illinois, it is mandatory for insurers to obtain certain documentation before proceeding with a settlement. When a claim exceeds $25,000, documentation regarding property taxes and demolition expenses is particularly crucial. This requirement helps to ensure that all financial obligations related to the property are settled prior to any insurance payout. The certificate confirming that property taxes and demolition expenses are paid mitigates the risk of potential liens on the property and ensures that the insured does not encounter any unresolved financial burdens as a result of the loss.

This practice reinforces the importance of confirming financial responsibility and maintaining clear title on the property before settling the claim. By obtaining this certificate, the insurer is protecting both the insured and itself from future disputes or liabilities that might arise from unpaid debts associated with the property.

Other options, while potentially relevant to the claims process, do not address the specific insurance requirements mandated by Illinois law pertaining to significant losses. For instance, a signed waiver from the insured does not serve the same purpose as confirming financial obligations. A detailed inspection report may inform the settlement but is not strictly necessary for processing payment in the context specified. Similarly, proof of the insured’s identity is a standard requirement but does not pertain to the specific