The bill amends various sections of the General Laws concerning condominium ownership and insurance requirements, specifically introducing new provisions under Section 34-36-29 that clarify how condominium insurance deductibles and unpaid losses are divided between associations and unit owners. It requires condominium associations to maintain property insurance on the units as originally built or on the units including improvements and betterments added by unit owners if required in the declaration or bylaws. The bill allows unit owners to maintain their own insurance policies as primary coverage in certain situations and establishes that if the association does not maintain property insurance on the units, unit owners must secure their own insurance as defined in the association's declaration or bylaws.

Additionally, the bill incorporates provisions from Section 34-36.1-3.13, detailing the insurance obligations of the association, including the maintenance of property and liability insurance, and outlines unit owners' responsibilities concerning deductibles and insurance claims. It specifies how losses are to be handled based on whether they affect common elements or individual units, including the allocation of deductibles and the responsibilities of unit owners for losses.

The legislation also modifies Section 34-36.1-1.02 to clarify the applicability of condominium laws to properties created before and after July 1, 1982, while removing outdated language regarding unit owner responsibilities for master policy deductibles. It establishes that if unit owners choose not to rebuild a damaged unit, their allocated interests will be reallocated as if the unit had been condemned, and the association must record an amendment to reflect this change. Furthermore, the bill emphasizes that there shall be no obligation on an association to apply common expenses related to a unit after a unit loss if the unit owner fails to comply with the insurance requirements. Overall, the bill aims to enhance clarity in insurance responsibilities and streamline the management of insurance proceeds within condominium associations.

Statutes affected:
7852: 34-36-29