The bill amends Section 34-36.1-3.13 of the General Laws concerning condominium insurance requirements. It references both the declaration and bylaws of a condominium association as sources for insurance regulation. The bill mandates that condominium associations maintain property and liability insurance, ensuring coverage for common elements and units. It specifies that the total insurance amount must be at least eighty percent of the actual cash value of the property.

The bill introduces provisions requiring the association to notify unit owners if necessary insurance is not reasonably available and allows the association to carry additional insurance as deemed appropriate. It stipulates that insurance policies must include protections for unit owners, such as waiving the insurer's right to subrogation against them and ensuring that unit owners are considered insured persons under the policy.

Additionally, the bill includes provisions for the distribution of insurance proceeds in the event of damage, emphasizing that proceeds must be used for repair or restoration unless certain conditions are met, such as a vote by unit owners not to rebuild. It allows unit owners to request damage appraisals from the association and mandates that the association provide these within a specified timeframe. The act will take effect upon passage.

Statutes affected:
5587: 34-36.1-3.13