Maryland House Bill HB553

Maryland 2022 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

Condominiums – Mandatory Insurance Coverage – Alterations

Impact

The bill's implementation will affect mandates surrounding insurance coverages, ensuring councils of unit owners are adequately protected against various liability and property damage claims. This change aims to standardize the insurance practices across condominiums, thereby enhancing the overall financial and operational security for owners and councils alike. Owners will now have clearly defined insurance requirements that should theoretically contribute to better management of common areas and communal financial resources, creating a smoother operational framework.

Summary

House Bill 553 addresses the mandatory insurance coverage requirements for condominiums in Maryland, specifically altering the provisions governing the responsibility of council of unit owners in maintaining property insurance. It mandates that councils maintain adequate property insurance against direct physical loss for common elements and units, with specific exclusions for improvements made by individual unit owners. Furthermore, the bill introduces requirements for comprehensive general liability insurance to cover damages related to the use and maintenance of common elements within the condominium property.

Contention

There is potential contention surrounding the bill related to how the new insurance requirements may impact current owners, particularly those who may find increased costs associated with compliance. Although the bill seeks to clarify and enforce standards for mandatory insurance coverage, there may be concerns from unit owners regarding how these changes could lead to higher assessments or changes in the premiums they are responsible for. Critics of the bill might argue it complicates existing laws and adds financial burdens, particularly in light of insurance deductibles laid out in the provisions.