R.I. Gen. Laws § 34-36.1-3.13
Insurance
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Statutory text
(a) Commencing not later than the time of the first conveyance of a unit to a person other
than a declarant, the association shall maintain, to the extent reasonably available:
Property insurance on the common elements insuring against all risks of direct, physical
loss commonly insured against or, in the case of a conversion building, against fire
and extended coverage perils. The total amount of insurance after application of any
deductibles shall be not less than eighty percent (80%) of the actual cash value of
the insured property at the time the insurance is purchased and at each renewal date,
exclusive of land, excavations, foundations, and other items normally excluded from
property policies; and
Liability insurance, including medical payments insurance, in an amount determined
by the executive board, but not less than any amount specified in the declaration,
covering all occurrences commonly insured against for death, bodily injury, and property
damage arising out of, or in connection with, the use, ownership, or maintenance of
the common elements and any property owned or leased by the association.
(b) In the case of a building containing units having horizontal boundaries described
in the declaration, the insurance maintained under subdivision (a)(1), to the extent
reasonably available, shall include the units, but need not include improvements and
betterments installed by unit owners.
(c) If the insurance described in subsections (a) and (b) is not reasonably available,
the association promptly shall cause notice of that fact to be hand delivered or sent
prepaid by United States mail to all unit owners. The declaration may require the
association to carry any other insurance, and the association in any event may carry
any other insurance it deems appropriate to protect the association or the unit owners.
(d) Insurance policies carried pursuant to subsection (a) must provide that:
Each unit owner is an insured person under the policy with respect to liability arising
out of the owner’s interest in the common elements or membership in the association;
The insurer waives its right to subrogation under the policy against any unit owner
or member of the owner’s household;
No act or omission by any unit owner, unless acting within the scope of his or her
authority on behalf of the association, will void the policy or be a condition to
recovery under the policy; and
If, at the time of a loss under the policy, there is other insurance in the name of
a unit owner covering the same risk covered by the policy, the association’s policy
provides primary insurance. Provided, however, a unit owner’s insurance policy shall
become the primary insurance policy with respect to any amount of loss to their unit
covered by the association’s policy but not payable under the association’s policy
because of the application of the deductible. If a unit owner fails to comply with
obligations pursuant to subsection (k) of this section, the unit owner shall have
the obligation for expenses related to the owner’s unit after a unit loss in the amount
of the deductible of the association property insurance applicable to the unit. The
association shall provide written notice to the unit owners setting forth the amount
of deductible for the association property insurance for their units at least thirty
days after notice to the association by the insurance carrier of any change in
the association property insurance deductible. The notice shall include a statement
asserting the unit owner’s legal obligation to notify its mortgagee of the change
in any deductible.
(e) Any loss covered by the property policy under subdivision (a)
and subsection (b)
must be adjusted with the association, but the insurance proceeds for that loss are
payable to any insurance trustee designated for that purpose, or otherwise to the
association, and not to any mortgagee or beneficiary under a deed of trust. The insurance
trustee or the association shall hold any insurance proceeds in trust for unit owners
and lien holders as their interests may appear. Subject to the provisions of subsection
(h), the proceeds must be disbursed first for the repair or restoration of the damaged
property, and unit owners and lien holders are not entitled to receive payment of
any portion of the proceeds unless there is a surplus of proceeds after the property
has been completed, repaired or restored, or the condominium is terminated.
(f) An insurance policy issued to the association does not prevent a unit owner from obtaining
insurance for his or her own benefit.
(g) An insurer that has issued an insurance policy under this section shall issue certificates
or memoranda of insurance to the association and, upon written request, to any unit
owner, mortgagee, or beneficiary under a deed of trust. The insurer issuing the policy
may not cancel or refuse to renew it until thirty
days after notice of the proposed
cancellation or nonrenewal has been mailed to the association, each unit owner, and
each mortgagee or beneficiary under a deed of trust to whom a certificate or memorandum
of insurance has been issued at their respective last known addresses.
(h) Any portion of the condominium for which insurance is required under this section
that is damaged or destroyed shall be repaired or replaced promptly by the association
unless:
The condominium is terminated;
Repair or replacement would be illegal
under any state or local health or safety statute or ordinance; or
Eighty percent
(80%) of the unit owners, including every owner of a unit or assigned, limited common
element that will not be rebuilt, vote not to rebuild unless insurance proceeds are
adequate to rebuild. The cost of repair or replacement in excess of insurance proceeds,
after the application of the association’s policy deductible, is a common expense,
unless the declaration or bylaws provide otherwise. If the entire condominium is not
repaired or replaced,
The insurance proceeds attributable to the damaged common
elements must be used to restore the damaged area to a condition compatible with the
remainder of the condominium;
The insurance proceeds attributable to units and
limited common elements that are not rebuilt must be distributed to the owners of
those units and the owners of the units to which those limited common elements were
allocated, or to lienholders, as their interests may appear; and
The remainder
of the proceeds must be distributed to all the unit owners or lienholders, as their
interests may appear, in proportion to the common element interests of all the units.
If the unit owners vote not to rebuild any unit, that unit’s allocated interests are
automatically reallocated upon the vote as if the unit had been condemned under § 34-36.1-1.07(a) and the association promptly shall prepare, execute, and record an amendment to the
declaration reflecting the reallocations. Notwithstanding the provisions of this subsection,
§ 34-36.1-2.18 governs the distribution of insurance proceeds if the condominium is terminated.
(i) In the event a unit owner sustains damage to the owner’s unit as a result of an event
that is covered under the insurance coverage purchased in accordance with this section,
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
calendar days of the date of the unit owner’s request, or within
fourteen
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.
(j) The provisions of this section may be varied or waived in the case of a condominium
all of whose units are restricted to nonresidential use.
(k) If the association maintains property insurance on the units, unit owners shall maintain,
to the extent reasonably available, the following insurance:
Property insurance for improvements and betterments installed in their units after
the first conveyances of the units to persons other than a declarant, if the association
does not maintain such coverage.
Insurance for any amount of loss covered by the association property insurance policy
but not payable under the association property insurance policy because of the application
of the deductible. There shall be no obligation on an association to apply common
expenses related to a unit after a unit loss if the unit owner fails to comply with
this section.
Synced from the Florida Legislature’s official site. Verify the current version before citing.
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Reference only — not legal advice. Verify current text at the official state legislature website before citing. Printed from Common Elements (July 4, 2026).