The proposed bill establishes a new chapter, CHAPTER 43.1, in Title 34 of the General Laws, which mandates that owners of large multi-family dwellings maintain insurance coverage for tenant relocation in the event the property becomes uninhabitable due to incidents like fire or natural disasters. This insurance must provide for at least thirty days of temporary housing and cover reasonable relocation costs. Landlords are required to inform tenants about this insurance at the lease signing and annually thereafter. The bill also includes enforcement measures, such as fines for non-compliance and the right for tenants to pursue legal action against landlords who fail to meet these obligations. It ensures tenant rights during displacement, prohibits retaliation by landlords, and sets a compliance deadline of January 1, 2027.

Additionally, the bill amends Section 27-5-3 of the General Laws regarding fire insurance policies, introducing new language that allows for a standard form and replaces the term "company" with a more accurate descriptor. It mandates that fire insurance policies for multi-unit residential properties include provisions for up to $10,000 in benefits per rental unit to cover relocation costs without a deductible. The bill specifies that these costs can include hotel rentals and other reasonable living expenses, and it requires landlords to inform tenants of these benefits at the lease's start, rendering any waiver of this provision in rental agreements void. The Department of Business Regulation is also authorized to exempt certain properties, such as public higher education residence halls, from these requirements if the institution assumes responsibility for tenant relocation. The act is set to take effect on July 1, 2025.

Statutes affected:
943: 27-5-3