Vote Smart's Synopsis:

Vote to pass a bill that specifies guidelines for the division of condominium insurance deductibles between associations and unit owners in Rhode Island.

Highlights:

• Specifies that this Act’s insurance provisions shall act as minimum requirements (Sec. 2).

• Requires associations to maintain insurance on units originally built or on the units including improvements and betterments added by unit owners, if stipulated in the declaration or bylaws (Sec. 2).

• Specifies that the amount of loss up to an association’s deductible and any amount remaining unpaid after the payment from an association’s policy shall be a common expense, if the covered loss is solely to the common elements (Sec. 2).

• Specifies that the amount of loss up to an association’s deductible and any amount remaining unpaid after the payment from an association’s policy shall be the responsibility of the unit’s owner, if the covered loss is solely to one unit and only one single deductible applies (Sec. 2).

• Specifies that the amount of loss up to an association’s per unit deductible and any amount remaining unpaid after the payment from an association’s policy shall be the responsibility of the unit’s owners, if the covered loss is to one or more units (Sec. 1).

• Specifies that the amount of loss up to an association’s per unit deductible and any amount remaining unpaid after the payment from an association’s policy shall be apportioned among and the responsibility of the unit’s owners and a common expense, if the covered loss is to one or more units or to common elements and only one deductible applies (Sec. 2).

• Specifies that the amount of loss up to an association’s per unit deductible and any amount remaining unpaid after the payment from an association’s policy shall be apportioned among and the responsibility of the unit’s owners and a common expense, if the covered loss is to one or more units or to common elements and there’s a per-unit and per-occurrence deductible (Sec. 2).

• Exempts associations from having to repair or replace damaged or destroyed condominiums if (Sec. 2):

• The loss is solely to a unit and the amount does not exceed the association’s policy deductible;

• The condominium is terminated;

• Repair or replacement would be illegal under any state or local health or safety policy; or

• 80% of the unit owners vote not to rebuild unless insurance proceeds are adequate to rebuild.

• Requires the governing board to determine how a destroyed condominium shall be repaired or replaced if there is coverage and insurance proceeds from both the unit owner’s and association’s policies (Sec. 2).

• Requires the governing board to carry out repairs or reconstruction in lieu of the distribution of the insurance proceeds to the unit owner(s) (Sec. 2).

• Requires unit owners to maintain property insurance as defined in their association’s declaration and bylaws if the association does not maintain it themselves (Sec. 2).

• Prohibits an association from being obligated to apply common expenses related to a unit if the owner does not comply with this section of the Act (Sec. 2).

• Specifies that this Act is effective upon passage (Sec. 3).

Full Bill Text