In 2019, the Maryland legislature considered increasing the amount that an individual could be charged for a master policy deductible from $5,000 to $10,000. Although the bill had a great deal of support, it did not pass into a law.
The Maryland Legislative Action Committee from Community Association Institute (CAI) feels strongly for these bills, House Bill 108 and Senate Bill 175.
In summary, the bills clarify the following:
- The unit owner can only be assessed a maximum of $10,000 (previously $5,000).
- The association must annually communicate the amount of the deductible to the unit owners.
- The association must tell the unit owners they are responsible for the deductible.
- Any deductible amount over $10,000 will be a common expense of the association (previously $5,000).
- Any deductible for damage occurring from common elements or originating outside the units will be a common expense.
We will continue to update you as the bills make their way through the 2020 legislative session.
