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Is The Deductible For A Claim Under A Condominium Association Master Insurance Policy Payable By A Unit Owner?

Sometimes it is. The DC Condominium Act was amended to allow Associations to charge the deductible payable under the Association’s Master Policy of Insurance to the Unit Owner if the insurance claim was filed due to loss or damage that originates from a Unit or its Limited Common Element, or any item that is a component of a Unit (or its Limited Common Element). In order to charge this deductible, the Bylaws must permit such action, and Unit Owners must be aware of such potential obligation before the damage occurs.

If your Condominium Association Bylaws were drafted before 2010, the Association may not have the right to charge the Unit Owner the Master Policy deductible. The result then would be that the deductible would need to be paid as a common expense. If your Association falls into this category, you may want to consider amending the Bylaws to provide this Association right. You should discuss the process of amending your Bylaws with your Association’s attorney.

If you are a management company, or a self-managed condominium, and your Bylaws permit the Association to seek reimbursement for the insurance deductible, you should send an annual reminder to all the Unit Owners of this potential reimbursement obligation. This way you have evidence that the Unit Owners were on (continual) notice of this obligation in the event they contest the demand for reimbursement.



The material on this website is not offered as legal advice on any matter and should not be used as a substitute for seeking professional legal advice.