2016 -- H 7437 SUBSTITUTE A

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LC004190/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM OWNERSHIP -- INSURANCE

     

     Introduced By: Representatives Solomon, Shekarchi, Coughlin, and Melo

     Date Introduced: February 03, 2016

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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

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

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     34-36-29. Insurance. -- (a) The manager, management committee, or association of unit

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owners, if required by the declaration, bylaws or by a majority of the unit owners, or at the

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request of a mortgagee having a first mortgage of record covering a unit, shall have the authority

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to, and shall, obtain insurance for the property against loss or damage by fire and other hazards

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under the terms and for amounts as shall be required or requested. Insurance coverage shall be

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written on the property in the name of the manager, management committee, or association of

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unit owners, as trustee for each of the unit owners in the percentages established in the

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declaration. Premiums on insurance shall be common expenses. Provision for insurance shall be

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without prejudice to the right of each unit owner to insure his or her own unit for his or her

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benefit.

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

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covered under the insurance coverage purchased in accordance with subsection (a) of this section,

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

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written copy from the condominium association of the insurance company damage appraisal or

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any damage appraisal in regard to damage to the owner's unit, within fourteen (14) calendar days

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

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

 

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reason or is deemed to be valued below the policy deductible, then the unit owner shall also be

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

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     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 -- INSURANCE

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     This act would entitle a condominium unit owner who sustained damage to their unit,

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upon written request to the condominium association, to obtain a copy of the insurance company

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damage appraisal covering the property within fourteen (14) days of the request. If coverage is

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denied or the damage is valued below the policy deductible, the unit owner shall be entitled to

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receive a copy of the letter detailing the determination.

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     This act would take effect upon passage.

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