An amendment to the Maryland Condominium Act, passed during the 2020 session of the Maryland General Assembly, will take effect October 1, 2020.
Currently, the association can charge up to $5,000 of the master policy deductible to the unit owner where damage originated.
The new amendment will increase that cap to $10,000 of the deductible. Any additional deductible amount remains a common expense.
The bill also clarifies that if the loss originates in a common element or outside of the unit – a storm, for example – that the association will be responsible for the deductible.
Helpful Tips –
- Associations are still required to tell homeowners the amount of the deductible on the master policy on a yearly basis.
- Unit owners should check their unit owner insurance policy to make sure the master policy deductible will be paid if assessed.
As your insurance policies renew, check to see if a higher deductible is worthwhile for the association to consider.
