The bill amends Section 34-36.1-3.13 of the General Laws concerning condominium insurance requirements. It introduces new legal language that emphasizes the association's obligation to maintain property and liability insurance for common elements and units, ensuring coverage against various risks. The amendments specify that the total insurance amount must be at least 80% of the actual cash value of the property, excluding certain items. Additionally, the bill mandates that insurance policies must include provisions that protect 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.

Furthermore, the bill allows for the declaration or bylaws of the condominium association to dictate additional insurance requirements and outlines the process for handling insurance proceeds in the event of damage. It stipulates that any insurance proceeds must first be used for repairs or restoration, with specific guidelines for distribution if the condominium is not fully rebuilt. The bill also grants unit owners the right to request damage appraisals related to their units and requires the association to provide these within a specified timeframe. Overall, the amendments aim to enhance the protection of unit owners and clarify the insurance obligations of condominium associations.

Statutes affected:
5587: 34-36.1-3.13