The bill amends Section 34-36-29 of the General Laws in Chapter 34-36, which addresses "Condominium Ownership," by clarifying how condominium insurance deductibles and unpaid losses are divided between associations and unit owners. It requires that if the association does not maintain property insurance on the units, unit owners must maintain property insurance on their units as defined in the association's declaration and/or bylaws. The bill specifies 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 this requirement.

The bill also establishes that if there is a covered loss, the governing board shall manage and use the applicable insurance proceeds for repairs to the common elements and the unit(s). It outlines the responsibilities of unit owners regarding deductibles in the event of a loss, including how losses are to be apportioned based on the type of damage and the applicable deductibles.

Additionally, the bill amends Sections 34-36.1-1.02 and 34-36.1-3.13 of Chapter 34-36.1, which governs "Condominium Law," by applying its provisions to all condominiums created after July 1, 1982, while allowing earlier establishments to voluntarily adopt them. The amendments detail the association's insurance obligations, loss management, and distribution of insurance proceeds, while removing outdated provisions and clarifying the responsibilities of both associations and unit owners regarding insurance coverage.

The act will take effect upon passage.

Statutes affected:
2896: 34-36-29