2023 -- H 5416

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LC001414

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM OWNERSHIP

     Introduced By: Representative Patricia A. Serpa

     Date Introduced: February 08, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 34-36-29 of the General Laws in Chapter 34-36 entitled

"Condominium Ownership" is hereby amended to read as follows:

     34-36-29. Insurance.

     (a) The manager, management committee, or association of unit owners, if required by the

declaration, bylaws, or by a majority of the unit owners, or at the request of a mortgagee having a

first mortgage of record covering a unit, shall have the authority to, and shall, obtain insurance for

the property against loss or damage by fire and other hazards under the terms and for amounts as

shall be required or requested. Insurance coverage shall be written on the property in the name of

the manager, management committee, or association of unit owners, as trustee for each of the unit

owners in the percentages established in the declaration. Premiums on insurance shall be common

expenses. Provision for insurance shall be without prejudice to the right of each unit owner to insure

his or her own unit for his or her benefit. Provided, however, a unit’s owners insurance policy shall

become the primary insurance policy with respect to any loss covered by the association’s policy

but not payable under the association’s policy because of the application of the deductible.

     (b) In the event a unit owner sustains damage to their unit as a result of an event that is

covered under the insurance coverage purchased in accordance with subsection (a), then, upon

written request to the condominium association, the unit owner shall be entitled to a written copy

from the condominium association of the insurance company damage appraisal, or any damage

appraisal in regard to damage to the owner’s unit, within fourteen (14) calendar days of the date of

the unit owner’s request, or within fourteen (14) days of the association’s receipt of the damage

appraisal, whichever is later. If coverage for the damage to a unit is denied for any reason, or is

deemed to be valued below the policy deductible, then the unit owner shall also be entitled to

receive, from the association, a copy of the letter detailing the determination.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM OWNERSHIP

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     This act would provide that a condominium unit owners policy would be the primary

insurance policy with respect to any loss covered by the association’s policy but not payable under

the association’s policy because of the application of the deductible.

     This act would take effect upon passage.

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