The bill amends Section 34-36-29 of the General Laws in Chapter 34-36, which pertains to condominium ownership, specifically regarding insurance requirements. The amendment introduces new language that mandates the manager, management committee, or association of unit owners to obtain insurance for the property against loss or damage by fire and other hazards if required by the declaration, bylaws, or by a majority of the unit owners, or at the request of a mortgagee with a first mortgage on a unit. The insurance coverage must be written in the name of the manager, management committee, or association of unit owners as trustee for each of the unit owners in the percentages established in the declaration. It also specifies that the premiums on insurance are common expenses and that unit owners have the right to insure their own units for their benefit. The insertion clarifies that a unit owner's insurance policy will become the primary policy with respect to any loss covered by the association's policy but not payable under the association's policy due to the application of the deductible.

Additionally, the bill stipulates that if a unit owner sustains damage to their unit from a covered event, they are entitled to receive a written copy of the insurance company's damage appraisal from the condominium association within 14 calendar days of their request or the association's receipt of the appraisal, whichever is later. If coverage for the damage is denied or valued below the policy deductible, the unit owner is also entitled to receive a copy of the letter detailing the determination. The bill will take effect upon passage. The explanation provided by the Legislative Council clarifies that the act aims to make a condominium unit owner's policy the primary insurance policy for losses covered by the association's policy but not payable due to the deductible.

Statutes affected:
5416: 34-36-29