Requires associations to provide unit owners with thirty (30) days notice of any increase in the deductible application to the association’s policy ensuring that unit owners will have coverage relating to their responsibility.
Impact
The proposed modifications to the condominium law would directly affect the governance of associations and their unit owners. The requirement for prior notification of deductible increases will likely foster stronger communication and trust between these parties. This change may also preempt potential disputes or misunderstandings regarding the financial operations of the association and could help in better facilitating insurance handling responsibilities among unit owners. Additionally, the bill stipulates that failure to maintain a personal unit owner's insurance policy does not exempt the owner from the responsibility for the association’s deductible, which may encourage owners to secure their individual insurance policies as a safeguard.
Summary
House Bill 7866 focuses on amendments to the condominium law in Rhode Island, necessitating condominium associations to provide unit owners with a minimum of thirty days’ notice before increasing the deductible amount applicable to the association’s insurance policy. This legislative change is intended to enhance transparency between condominium associations and their unit owners, ensuring that owners are well-informed about their financial obligations relative to the association's master policy. By requiring this notice, the bill aims to protect unit owners from unexpected increases that could impact their costs and responsibilities regarding insurance coverage.
Contention
Debate around HB 7866 largely centers on the balance of power between condominium associations and their members. Proponents argue that the legislation is a necessary step towards greater accountability of associations and will empower unit owners with important financial information. However, opponents express concern that such regulations may overburden associations with compliance requirements, potentially leading to administrative delays or complications in decision-making processes. There is also apprehension among some associations about the administrative implications of tracking changes and adhering to the mandated notification protocols, which may increase operational costs.