The bill amends Sections 27-5-3 and 27-5-9.1 of the General Laws in Chapter 27-5, which governs fire insurance policies in Rhode Island. It introduces a new standard fire insurance policy format that codifies uniform appraisal procedures and payment obligations, reflecting contemporary claim-handling practices while preserving consumer protections.

Key changes include updating the notification requirements for insured parties following a loss, mandating that they notify the insurance company as soon as practicable and take reasonable measures to protect the property from further damage. The bill clarifies the appraisal process for disputes over loss amounts, detailing the qualifications for appraisers and umpires, and the conditions under which a court may appoint them if the parties cannot reach an agreement.

The bill establishes that if the insured and the insurance company fail to agree on the amount of loss, either party may demand appraisal in writing, regardless of coverage acceptance. It specifies the qualifications for appraisers and umpires, including residency and knowledge requirements, and outlines the process for determining replacement cost value and actual cash value.

Additionally, the bill introduces a simplified comprehensive insurance policy option providing broad coverage and sets a ten-year limitation period for non-fire and non-lightning homeowners claims, overriding shorter contractual provisions. Claims related to fire or lightning will continue to be governed by existing laws. Overall, the amendments aim to modernize the fire insurance policy framework and improve claims handling efficiency in Rhode Island.

Statutes affected:
7521: 27-5-9.1