Upper Darby Township administers fire escrow funds in accordance with Chapter 339 of the Township Code and the Pennsylvania Insurance Company Law.

When a structure is damaged by fire, a portion of the insurance proceeds may be transferred to the Township and held in a separate escrow account. These funds are held as security to ensure that the property is properly repaired, secured, or demolished, and that the Township does not incur costs associated with unsafe or abandoned structures.

Fire escrow funds are not a fee or penalty. They are a temporary safeguard to ensure that fire-damaged properties are brought into compliance.

When Fire Escrow Funds Are Required

Fire escrow funds are required when:

• The fire loss equals or exceeds 60% of the total insured value of the structure
• Insurance proceeds exceed $7,500 and municipal certifications are required

In these cases, the insurance company is required by law to transfer a portion of the insurance proceeds directly to the Township to be held in escrow.

How Escrow Amounts Are Determined

The amount of funds transferred to the Township is calculated as follows:

• $2,000 for every $15,000 of the insurance claim (or fraction thereof),
  or
• The amount of a contractor’s signed estimate for repair, removal, or securing of the structure (if provided and accepted)

If a contractor’s estimate is submitted and is less than the calculated escrow amount, the Township may return any excess funds to the property owner if no work has been performed by the Township.

Purpose of Fire Escrow Funds

Fire escrow funds are held by the Township to:

• Ensure that fire-damaged structures are repaired, demolished, or properly secured
• Protect public safety and prevent unsafe conditions
• Cover any costs incurred by the Township for emergency work or property stabilization

Funds are placed in a separate account and may only be used for these purposes.

Maintenance of Fire-Damaged Properties

Fire-damaged properties must be maintained in a safe and secure condition at all times.

Property owners are responsible for ensuring that fire-damaged structures do not:

• Become unsafe or structurally unstable
• Create hazardous conditions for occupants, neighbors, or the public
• Become a nuisance due to debris, unsecured access, or deterioration
• Attract unauthorized entry or illegal activity

Properties must be properly secured, stabilized, and maintained throughout the repair, demolition, or restoration process.

Failure to maintain a fire-damaged property may result in additional Township action and may impact the release of escrow funds.

Release of Fire Escrow Funds

Fire escrow funds are released to the property owner as work is completed and verified by the Township.

Funds may be released when:

• Repairs, demolition, or securing of the structure have been completed
• Required permits have been obtained
• Inspections have been completed and approved
• The Township has verified that no outstanding work remains

If the Township has incurred costs related to the property, those costs will be deducted from the escrow funds. Any remaining balance will be returned to the property owner.

Permits and Inspections Required for Release

All required permits and inspections must be obtained, completed, and approved prior to the release of any fire escrow funds.

This includes, but is not limited to:

• Building permits
• Electrical, plumbing, and mechanical permits (as applicable)
• Demolition permits (if applicable)
• Fire protection permits (if applicable)

Funds will only be released based on verified work that has been:

• Properly permitted
• Inspected by the Township
• Approved as compliant with applicable codes and regulations

The Department of Licenses & Inspections is responsible for verifying permits, inspections, and overall property compliance, while the Department of Finance administers and releases escrow funds in accordance with Township requirements.

Funds will not be released until all applicable requirements have been reviewed and approved.

Work performed without required permits or inspections may delay or prevent the release of escrow funds.

Escrow funds are released based on verified compliance, not anticipated or incomplete work.

Requesting a Release of Fire Escrow Funds

To request a release of fire escrow funds, the property owner or authorized representative must submit a Fire Escrow Release Request to the Department of Licenses & Inspections.

The request must include:

• Name and address of the insured/property owner
• Name and title of the individual requesting the release
• Property address where work is being performed
• Permit type associated with the work
• Percent reduction requested
• Dollar amount requested for release
• Signature of the requestor

Incomplete requests may delay processing.

Review and Approval Process

Once a Fire Escrow Release Request is submitted:

1. Inspection is conducted by the assigned inspector to verify completed work
2. Release amount is determined based on inspection findings
3. Approvals are required from:
   • Inspector
   • Director of Licenses & Inspections
   • Director of Finance
4. Funds are released by the Department of Finance

The Township may approve partial releases based on the percentage of work completed.

Important Considerations

• Fire escrow funds are released based on verified progress of work, not estimated completion
• All required permits and inspections must be completed prior to release
• Partial releases may be approved as work progresses
• Final release requires full compliance and completion of all work
• Any Township-incurred costs will be deducted from escrow funds

Alternative Agreements

In certain cases, the Township and the property owner may enter into an agreement for the disposition of escrow funds if an alternative resolution for the property has been approved.

Such agreements must:

• Be reviewed by the Township Solicitor
• Be approved by resolution of Township Council

Frequently Asked Questions

Why is the Township holding my insurance money?
The funds are held as required by State law to ensure the property is properly repaired, secured, or demolished and does not become a safety hazard.

What happens if the Township performs work on the property?
Any costs incurred by the Township will be deducted from the escrow funds.

How long does it take to receive funds after submitting a request?
Processing time depends on inspection, approvals, and Finance processing.

Do I need permits before requesting release?
Yes. Required permits and inspections must be completed prior to release.

Contact the Department of Licenses & Inspections

For questions regarding Fire Escrow Funds or Release Requests, please contact the Department of Licenses & Inspections.

Email: LI@UpperDarby.org
Phone: 610-734-7613

Residents may also submit inquiries or report concerns through the Township One Center.

To submit a concern, email One@UpperDarby.org or call the One Center Request Line at 610-734-7625.