Has The Maryland Condominium Insurance Deductible Law Changed?

Maryland recently became another jurisdiction to permit Condominium Associations to increase the amount of their Master Insurance Policy property insurance deductible that may be charged back to a unit owner in the event of damage to the condominium which originates from a unit and/or individual unit component.

Starting October 1, 2027, the Maryland General Assembly has permitted Condominium Associations to charge back up to $25,000 (rather than the previous $10,000 limit) in the event an individual unit and/or a unit component is the source of the damage. The District of Columbia City Council has a similar bill currently pending.

Councils of Unit Owners (also known as Unit Owners Associations) are required to notify the unit owners in writing annually of this financial exposure in order to be permitted to exercise their right to reimbursement. Be sure to check with your management company or counsel to determine the last time such notice was set.

This law does not apply to condominiums where all the units are intended for non-residential use.

If you should have any questions, reach out to your counsel or your management company.

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.