Rhode Island’s new tenant insurance law took effect on January 1, 2023. This new law allows Rhode Island self storage operators to sell tenant insurance without obtaining a license, given a set of requirements are followed, including:
- Training of the employees involved with the sale of insurance by the facility’s insurer,
- Employees cannot represent themselves as licensed insurance producers,
- Separate itemization or clear communication to the tenant about the charges,
- Insurance may be provided under a commercial, corporate, group, or master policy
- In print or electronic writing, the operator must summarize the terms of the policy, including:
- The identity of the insurer,
- The identity of the supervising entity,
- The amount of the deductible and how it can be paid,
- Benefits of coverage,
- Key terms and conditions of coverage,
- The process for filing a claim, and
- A statement that the tenant can cancel their insurance coverage at any time.
Of course, the facility must also disclose in writing that the insurance they are selling may already be provided in one of the customer’s existing policies (homeowner’s, renter’s, etc.), and that enrollment in the facility’s insurance program is not required in order to lease a space from their facility. If insurance is required to rent a unit at the facility, the customer must also be given notice that they can opt out of purchasing a policy through the facility if they can provide proof of other applicable insurance.
For more information about the new State of Rhode Island Self-Service Storage Insurance Act, you can read the full, final version of the Bill here. Of course, you can also always reach out to us for any questions!