Condominiums - Mandatory Insurance Coverage
HB 469 would require owners of condominium units in residential-only condominiums to maintain a condominium unit owner insurance policy, or a substantially similar property insurance policy, covering the unit. The bill specifies minimum coverage components, including protection for the council of unit owners’ deductible, personal property, loss of use for at least 12 months, personal liability coverage of at least $500,000, loss assessment coverage of at least $25,000, and dwelling/building coverage for certain improvements and unit-owner-responsible upgrades. Condominium bylaws could require higher coverage amounts than the statutory minimum.
The bill also requires unit owners to provide proof of insurance annually and upon request by the council of unit owners. If a unit owner fails to maintain the required coverage, the council may obtain insurance on the owner’s behalf and charge the premium back as an assessment. For insurance obtained this way, the carrier must pay directly to the council the portion of the deductible the owner is responsible for under existing condominium law. The act would take effect October 1, 2026.
HB 469 would add a new section to Maryland’s Real Property Article governing condominiums, creating a statewide minimum insurance requirement for unit owners in residential condominiums that are not detached units. It would interact with existing condominium insurance and deductible rules under § 11-114 by tying required unit-owner coverage to the council’s deductible exposure and by authorizing councils to secure coverage and assess the cost if an owner does not comply. The bill would affect condominium unit owners, councils of unit owners, insurers, and condominium bylaws.
Based on the available context, the bill appears to have been introduced and referred for a hearing, with no recorded votes or committee testimony provided in the materials. The bill’s structure suggests a policy goal of standardizing insurance protection and reducing financial risk for condominium associations and neighboring owners, which may appeal to property managers and councils of unit owners. At the same time, the mandatory coverage levels and potential assessments could raise concerns for unit owners about added costs and compliance burdens.
The main points of contention are likely to be the cost and scope of the required insurance, especially the relatively high minimums for personal liability, loss of use, and dwelling coverage. Unit owners may object to being required to purchase coverage for association deductibles and to the council’s ability to buy insurance on their behalf and assess the premium if they fail to comply. Condominium councils and insurers may support the bill because it shifts risk management toward individual owners and provides a clearer mechanism for recovering deductible-related losses.