2025 -- S 0943

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LC002646

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO PROPERTY -- INSURANCE ON MULTI-UNIT DWELLINGS -- TENANT

RELOCATION INSURANCE

     Introduced By: Senators Dimitri, Tikoian, Patalano, Vargas, Thompson, Ciccone,
Bissaillon, Urso, Burke, and Appollonio

     Date Introduced: April 04, 2025

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by

adding thereto the following chapter:

CHAPTER 43.1

INSURANCE ON MULTI-UNIT DWELLING -- TENANT RELOCATION INSURANCE

     34-43.1-1. Definitions.

     As used in this chapter:

     (1) "Act of God" means an unforeseeable and unavoidable natural disaster or phenomenon,

to include, but not limited to, a flood, earthquake, tornado, hurricane, wildfire, or other similar

event that occurs without human intervention and could not have been prevented by reasonable

foresight or care.

     (2) "Certificate of occupancy" means the document issued by the local government agency

or building department certifying that a building or dwelling unit complies with applicable building

codes and regulations and may be occupied for its intended use.

     (3) “Department” means the department of business regulation established pursuant to §

42-14-1.

     (4) "Large multi-family dwelling" means any building or structure containing more than

twelve (12) residential dwelling units including, but not limited to, apartment buildings,

condominium complexes, and cooperative housing.

     (5) "Temporary housing" means alternative accommodations provided to tenants when

their primary residence becomes uninhabitable including, but not limited to, hotels, motels, short-

term rentals, or other suitable living arrangements that meet the standards set forth in this chapter.

     34-43.1-2. Temporary housing insurance requirement.

     (a) Pursuant to the provisions of § 34-43.1-5, the owner, landlord, maintenance company,

executive board or entity responsible to provide insurance for the structure of any multi-family

dwelling in this state shall maintain insurance coverage that provides for the temporary housing of

tenants and residents for a period of at least thirty (30) days in the event the large multi-family

dwelling loses its certificate of occupancy or becomes uninhabitable due to a fire, act of God, flood,

or other sudden occurrence that renders the property uninhabitable.

     (b) The insurance coverage required by this section shall, at a minimum:

     (1) Provide for the relocation and temporary housing of all tenants and residents residing

in the multi-family dwelling at the time of the event;

     (2) Cover the reasonable costs of such temporary housing, including rent for occupancy

and storage for property for the persons and property displaced by an event described in subsection

(a) of this section; and

     (3) Remain in effect for a minimum period of thirty (30) days following the date the large

multi-family dwelling becomes uninhabitable.

     34-43.1-3. Enforcement and penalties.

     (a) The department shall have the authority to request proof of insurance to verify

compliance with the coverage requirements set forth in this chapter.

     (b) Any entity responsible for maintaining insurance required pursuant to § 34-43.1-2(a)

who fails to maintain the insurance coverage shall be subject to a fine of not less than one thousand

dollars ($1,000) per day, for each day the large multi-family dwelling is not in compliance.

     (c) Tenants may initiate legal action against landlords for non-compliance with the

temporary housing insurance requirement or failure to provide adequate temporary housing as

required by the provisions of this chapter. Tenants prevailing in a civil action may seek injunctive

relief, damages, and reasonable attorneys' fees.

     34-43.1-4. Tenant rights and protections.

     (a) Tenants shall have the right to be informed of the temporary housing insurance coverage

maintained by the landlord of their large multi-family dwelling. Landlords shall provide a summary

of the coverage to tenants at the time of lease signing and annually thereafter.

     (b) In the event of displacement, tenants and residents shall have the right to:

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     (1) Be promptly notified of the temporary housing arrangements and relocation process;

     (2) Receive clear and timely information about their rights and responsibilities during the

temporary housing period;

     (3) Have reasonable access to their personal belongings in the affected multi-family

dwelling, when safe to do so;

     (4) Be provided with temporary housing that meets the minimum standards established

pursuant to chapter 24.2 of title 45;

     (5) Receive regular updates on the status of repairs or reconstruction of their primary

residence; and

     (6) Return to their original dwelling unit once it has been deemed habitable and has

regained its certificate of occupancy, subject to the terms of their original lease agreement.

     (c) No tenant shall be subject to rent increases, lease termination, or other adverse actions

by the landlord as a result of exercising their rights under this law.

     34-43.1-5. Transition.

     (a) Landlords of large multi-family dwellings in existence on or before July 1, 2025, shall

comply with the provisions of this chapter on or before January 1, 2027. On or after July 1, 2025,

newly constructed or converted multi-family dwellings shall comply with the provisions of this

chapter upon issuance of their initial certificate of occupancy.

     (b) The department shall have the authority to promulgate rules and regulations necessary

to implement and enforce the provisions of this chapter including, but not limited to:

     (1) Detailed standards for temporary housing accommodations;

     (2) Procedures for conducting compliance inspections;

     (3) Guidelines for the financial assistance program;

     (4) Processes for handling tenant and resident complaints and dispute resolution; and

     (5) Reporting requirements for multi-family dwelling landlords and insurance providers.

     34-43.1-6. Severability.

     If any provision of this chapter or its application to any person or circumstance is held

invalid, the invalidity does not affect other provisions or applications of this chapter that can be

given effect without the invalid provision or application, and to this end the provisions of this

chapter are severable.

     34-43.1-7. Preemption.

     This law shall supersede any conflicting local ordinances or regulations relating to

temporary housing insurance requirements for large multi-family dwellings; provided however,

local governments may enact additional requirements that do not conflict with or weaken the

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provisions of this chapter.

     SECTION 2. Section 27-5-3 of the General Laws in Chapter 27-5 entitled "Fire Insurance

Policies and Reserves" is hereby amended to read as follows:

27-5-3. Form of standard policy.

     The form of the standard fire insurance policy of the state of Rhode Island, with permission

to substitute for the word “company” or “companies” a more accurate descriptive term for the type

of insurer, shall be as follows:

No

     Space for insertion of name of company or companies issuing the policy and other matter

permitted to be stated at the head of the policy.

     Space for listing amounts of insurance, rates, and premiums for the basic coverages insured

under the standard form of policy and for additional coverages or perils insured under endorsements

attached.

     In consideration of the provisions and stipulations herein or added hereto and of ...............

dollars premium this company, for the term of ……………

      from the ………… day of ………………………………………………, 20 ……

      to the ………… day of ………………………………………………, 20 ………

      at 12:01 a.m. standard time at location of property involved,

to an amount not exceeding ..................... dollars, does insure, .......................... and legal

representatives, to the extent of the actual cash value of the property at the time of loss, but not

exceeding the amount which it would cost to repair or replace the property with material of like

kind and quality within a reasonable time after a loss, without allowance for any increased cost of

repair or reconstruction by reason of any ordinance or law regulating construction or repair, and

without compensation for loss resulting from interruption of business or manufacture, nor in any

event for more than the interest of the insured, against all direct loss by fire and lightning, and by

removal from the premises endangered by the perils insured against in this policy, except as

hereinafter provided, to the property described hereinafter while located or contained as described

in this policy, or pro rata for five (5) days at each proper place to which any of the property shall

necessarily be removed for preservation from the perils insured against in this policy, but not

elsewhere.

     Assignment of this policy shall not be valid except with the written consent of this

company.

     This policy is made and accepted subject to the foregoing provisions and stipulations and

those hereinafter stated, which are hereby made a part of this policy, together with such other

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provisions, stipulations, and agreements as may be added hereto, as provided in this policy.

     IN WITNESS WHEREOF, this company has executed and attested these presents;

     at

     …………………………………

     Secretary President

In the event the domicile state of the company issuing the policy requires a Rhode Island company

to have a countersignature affixed by a licensed resident agent to a policy issued in that state then

in accordance with the provisions of § 27-2-17, the form of the standard fire insurance policy shall

in lieu of the foregoing execution and attestation clause contain the following execution and

attestation clause: IN WITNESS WHEREOF, this company has executed and attested these

presents; but this policy shall not be valid unless countersigned by the duly authorized agent of this

company at

…………………………………

Secretary President

Countersigned this .…………………... day of ……………………………………20 ..………….

Agent

1 Concealment, This entire policy shall be void if, whether

2 fraud. before or after a loss, the insured will-

3 fully concealed or misrepresented any material

4 fact or circumstance concerning this insurance or the subject

5 thereof, or the interest of the insured therein, or in the case of

6 any fraud or false swearing by the insured relating thereto.

7 Uninsurable This policy shall not cover accounts, bills,

8 and excepted currency, deeds, evidences of debt, money, or

9 property. securities; nor, unless specifically named here-

10 on in writing, bullion or manuscripts.

11 Perils not This company shall not be liable for loss by

12 included. fire or other perils insured against in this

13 policy caused, directly or indirectly, by: (a)

14 enemy attack by armed forces, including action taken by mili-

15 tary, naval, or air forces in resisting an actual or an immediately

16 impending enemy attack; (b) invasion; (c) insurrection; (d)

17 rebellion; (e) revolution; (f) civil war; (g) usurped power; (h)

18 order of any civil authority except acts of destruction at the time

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19 of and for the purpose of preventing the spread of fire, provided

20 that this fire did not originate from any of the perils excluded

21 by this policy; (i) neglect of the insured to use all reasonable

22 means to save and preserve the property at and after a loss, or

23 when the property is endangered by fire in neighboring prem-

24 ises; (j) loss by theft.

25 Other Insurance. Other insurance may be prohibited or the

26 amount of insurance may be limited by an

27 endorsement attached hereto.

28 Conditions suspending or restricting insurance. Unless

29 otherwise provided in writing and added hereto this company

or companies shall not

30 be liable for loss occurring:

31 (a) While the hazard is increased by any means within the con-

32 trol or knowledge of the insured; or

33 (b) While a described building, whether intended for occupancy

34 by owner or tenant, is vacant or unoccupied beyond a period of

35 sixty (60) consecutive days or

35A thirty (30) consecutive days subsequent to the date on which an

35B order is issued by the local building inspector pursuant to

§ 23-27.3-124.2,

35C whichever first occurs; or

36 (c) As a result of explosion or riot, unless fire ensues, and in

37 that event for loss by fire only.

38 Other perils Any other peril to be insured against or sub-

39 or subjects. ject of insurance to be covered in this policy

40 shall be by endorsement in writing hereon or

41 added hereto.

     Provisions for large multi-family properties. Every policy which insures multi-unit

residential property, as defined in §34-43.1-1, against loss or damage by fire shall provide

additional benefits, by endorsement attached to the policy, up to a limit of ten thousand dollars

($10,000), without deductible, for each rental unit to cover the actual costs of relocation of any

tenant or lawful occupant displaced by fire or from a loss described in § 34-43.1-2(a). The actual

costs of relocation shall include, but not be limited to, hotel room rental, a security deposit and first

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month's rent for a new rental unit if the security deposit or last month's rent is not already due and

owing from the landlord to the tenant, clothing replacement, furniture replacement and other

reasonable costs and living expenses as a result of being displaced or damaged by a covered loss.

Benefits under this clause shall be paid by the insurer to the tenant or lawful occupant after

considering benefits available under any other policy. The terms and conditions of such clause shall

be approved or prescribed by the commissioner. The landlord or lessor of the property shall notify

each tenant or lawful occupant in writing of the benefits payable under this clause at the beginning

of the lease or tenancy period. A waiver of this provision in any lease or other rental agreement

shall be void and unenforceable.

The department of business regulation may exempt from the provisions of this section residence

halls and dormitories operated by institutions of public higher education; provided, however, that

the institution assumes responsibility for the relocation of any tenant displaced by fire or by damage

resulting from a loss described in § 34-43.1-2(a).

42 Added provisions. The extent of the application of insurance

43 under this policy and of the contribution to

44 be made by this company in case of loss, and any other pro-

45 vision or agreement not inconsistent with the provisions of this

46 policy, may be provided for in writing and added hereto, but no

47 provision may be waived except such as by the terms of this

48 policy is subject to change.

49 Waiver No permission affecting this insurance shall

50 provisions. exist, or waiver of any provision is valid,

51 unless granted herein or expressed in writing

52 and added hereto. No provision, stipulation, or forfeiture shall

53 be held to be waived by any requirement or proceeding on the

54 part of this company relating to appraisal or to any examina-

55 tion provided for herein.

56 Cancellation This policy shall be cancelled at any time

57 of policy. at the request of the insured, in which case

58 this company shall, upon demand and sur-

59 render of this policy, refund the excess of the paid premium

above

60 the customary short rates for the expired time. This pol-

61 icy may be cancelled at any time by this company by giving

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62 to the insured a thirty (30) days’ written notice of cancellation except that when cancellation is

for nonpayment of premium, a ten (10) days’ written notice shall be required with

63 or without tender of the excess of the paid premium above the

pro

64 rata premium for the expired time.

65 Notice of cancellation shall state that

66 the excess premium (if not tendered) will be promptly

67 re-funded.

68 Mortgagee If loss hereunder is made payable, in whole

69 interests and or in part, to a designated mortgagee not

70 obligations. named herein as the insured, that interest in

71 this policy may be cancelled by giving to that

72 mortgagee a ten (10) days’ written notice of

73 cancellation.

74 If the insured fails to render proof of loss the mortgagee, upon

75 notice, shall render proof of loss in the form herein specified

76 within sixty (60) days thereafter and shall be subject to the pro-

77 visions hereof relating to appraisal and time of payment and of

78 bringing suit. If this company shall claim that no liability ex-

79 isted as to the mortgagor or owner, it shall, to the extent of the pay-

80 ment of loss to the mortgagee, be subrogated to all the mort-

81 gagee's rights of recovery, but without impairing the mort-

gagee's

82 right to sue; or it may pay off the mortgage debt and require

83 an assignment thereof and of the mortgage. Other provisions

84 relating to the interests and obligations of the mortgagee may

85 be added hereto by agreement in writing.

86 Pro rata liability. This company shall not be liable for a

87 greater proportion of any loss than the

88 amount hereby insured shall bear to the whole insurance cover-

89 ing the property against the peril involved, whether collectible

or not.

90 Requirements in The insured shall give immediate written

91 case loss occurs. notice to this company of any loss, protect

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92 the property from further damage, forth

with

93 separate the damaged and undamaged personal property, put

94 it in the best possible order, furnish a complete inventory of

95 the destroyed, damaged, and undamaged property, showing in

96 detail quantities, costs, actual cash value and amount of loss

97 claimed; and within sixty (60) days after the loss, unless such

98 time is extended in writing by this company, the insured shall

99 render to this company a proof of loss, signed and sworn to by

100 the insured, stating the knowledge and belief of the insured as to

101 the following: the time and origin of the loss, the interest of the

102 insured and of all others in the property, the actual cash value of

103 each item thereof and the amount of loss thereto, all encum-

104 brances thereon, all other contracts of insurance, whether valid

105 or not, covering any of the property, any changes in the title,

106 use, occupation, location, possession, or exposures of the prop-

107 erty since the issuing of this policy, and by whom and for what

108 purpose any building herein described and the several parts

109 thereof were occupied at the time of loss and whether or not it

110 then stood on leased ground, and shall furnish a copy of all the

111 descriptions and schedules in all policies and, if required, veri-

112 fied plans and specifications of any building, fixtures, or

machin-

113 ery destroyed or damaged. The insured, as often as may be

114 reasonably required, shall exhibit to any person designated by

115 this company all that remains of any property herein described,

116 and submit to examinations under oath by any person named by

117 this company, and subscribe the same; and, as often as may be

118 reasonably required, shall produce for examination all books of

119 account, bills, invoices, and other vouchers, or certified copies

120 thereof if the originals are lost, at such reasonable time and

place as

121 may be designated by this company or its representative, and

122 shall permit extracts and copies thereof to be made.

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123 Appraisal. In case the insured and this company shall

124 fail to agree as to the actual cash value or

125 the amount of loss, then, on the written demand of either, each

126 shall select a competent and disinterested appraiser and notify

127 the other of the appraiser selected within twenty (20) days of

128 that demand. The appraisers shall first select a competent and

129 disinterested umpire; and failing for fifteen (15) days to agree

130 upon the umpire, then, on request of the insured or this com-

131 pany, the umpire shall be selected by a judge of a court of

132 record in the state in which the property covered is located. The

133 appraisers shall then appraise the loss, stating separately actual

134 cash value and loss to each item; and, failing to agree, shall

135 submit their differences, only, to the umpire. An award in writ-

136 ing, so itemized, of any two (2) when filed with this company

shall

137 determine the amount of actual cash value and loss. Each

138 appraiser shall be paid by the party selecting him or her and

139 the expenses of appraisal and the umpire shall be paid by

140 the parties equally.

141 Company's It shall be optional with this company to

142 options. take all, or any part, of the property at the

143 agreed or appraised value, and also to re-

144 pair, rebuild, or replace the property destroyed or damaged with

145 another of like kind and quality within a reasonable time, on

146 giving notice of its intention so to do within thirty (30) days

147 after the receipt of the proof of the loss herein required.

148 Abandonment. There can be no abandonment to this com-

149 pany of any property.

150 When loss The amount of loss for which this company

151 payable may be liable shall be payable sixty (60)

152 days after proof of loss, as herein provided,

153 is received by this company and ascertainment of the loss is

154 made either by agreement between the insured and this com-

155 pany expressed in writing or by the filing with this company

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156 of an award as herein provided.

157 Suit. No suit or action on this policy for the recov-

158 ery of any claim shall be sustainable in any

159 court of law or equity unless all the requirements of this policy

160 shall have been complied with, and unless commenced within

161 twenty-four (24) months next after inception of the loss.

162 Subrogation. This company may require from the insured

163 an assignment of all rights of recovery.

164 against any party for loss to the extent that payment therefor

165 is made by this company.

Standard Fire Insurance Policy of the State of

Expires

Property

Assured

No. ……………………………

(COMPANY)

It is important that the written portions of all policies covering

the same property read exactly alike. If they do not, they should

be made uniform at once.

     SECTION 3. This act shall take effect on July 1, 2025.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- INSURANCE ON MULTI-UNIT DWELLINGS -- TENANT

RELOCATION INSURANCE

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     This act would require owners of large multi-family dwellings to secure insurance coverage

that provides for the temporary housing of tenants for a period of at least thirty (30) days in the

event the large multi-family dwelling loses its certificate of occupancy or becomes uninhabitable

due to a fire, act of God, flood, or other sudden occurrence that renders the property uninhabitable.

     This act would take effect on July 1, 2025.

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