Clarifies how condominium insurance deductibles and unpaid losses are divided between associations and unit owners, require owners to insure units if associations do not, and allow boards to manage and use insurance proceeds for repairs.

Plain-English Summary

This bill updates Rhode Island's condominium ownership laws to clarify how the costs of insurance — specifically deductibles and any losses not covered by insurance — are divided between a condo association and the individual unit owners. Currently, there can be confusion about who is responsible for paying these costs when damage occurs. This bill aims to spell out those responsibilities more clearly so there is less dispute when something goes wrong.

The bill also addresses situations where a condo association does not carry insurance on individual units. In those cases, the bill would require unit owners to purchase their own insurance coverage for their units. This ensures that units are not left unprotected in the event of damage or loss.

Additionally, the bill gives condo association boards the authority to manage and use insurance payout money to fund repairs. This means the board could receive insurance proceeds and oversee the repair process, rather than having funds sit idle or be disputed while damage goes unaddressed.

This bill primarily affects people who live in or own condominium units in Rhode Island, as well as condo association boards and property managers. It is currently in the early stages of the legislative process — it has been introduced and referred to the Senate Housing and Municipal Government Committee, which has recommended holding it for further study before any vote is taken.