Maryland 2024 Regular Session

Maryland Senate Bill SB1015

Introduced
2/2/24  
Refer
2/2/24  
Report Pass
4/8/24  
Engrossed
4/8/24  

Caption

Condominiums – Mandatory Insurance Coverage – Detached Units

Impact

The legislation is anticipated to have a significant impact on state laws governing condominium associations. By defining the mandatory insurance landscape, SB1015 provides clarity for condominium councils in terms of their obligations to their unit owners. The changes lift some of the burden from individual owners by consolidating the insurance responsibilities, which may also foster better financial stability within condominium developments. This shift could lead to more unified approaches to risk management and liability among unit owners and the associations governing them.

Summary

Senate Bill 1015 aims to establish mandatory insurance coverage requirements for condominium unit owners, particularly focusing on detached units. The bill mandates that the council of unit owners maintain various types of insurance, including property insurance against common risks and general liability insurance. It specifies the responsibilities of unit owners regarding property insurance for their detached units, notably limiting the extent to which they must independently carry homeowners insurance. The overall goal is to enhance financial protection and ensure that common areas and individual units are properly insured against potential damages.

Sentiment

The sentiment surrounding SB1015 appears to be largely positive, especially among proponents who argue that it offers essential protections to both condominium associations and individual unit owners. Supporters assert that having clear insurance requirements can lead to fewer disputes regarding liability and coverage in the event of damages. However, there may be some concerns about over-regulation impacting individual autonomy regarding insurance decisions, though these views seem less prevalent based on the current discussions.

Contention

One notable point of contention could arise from the stipulation of a $10,000 deductible for unit owners responsible for the cause of damages. This provision may raise questions about fairness, particularly in instances where damages are a result of larger systemic issues or common property problems. Additionally, the requirement for the council of unit owners to ensure appropriate coverage could lead to debates about the adequacy of the types of insurance provided and potential financial ramifications for both councils and individual owners if claims arise.

Companion Bills

MD HB1227

Crossfiled Condominiums - Mandatory Insurance Coverage - Detached Units

Previously Filed As

MD HB98

Condominiums - Mandatory Insurance Coverage - Alterations

MD SB403

Condominiums - Declarations and Mandatory Insurance Coverage - Alterations

MD SB233

Condominiums - Property Insurance - Repair of Damage

MD HB52

Condominiums - Sales Contracts - Asbestos Disclosure

MD SB593

Condominiums - Common Elements - Clean Energy Equipment

MD HB101

Condominiums - Common Elements - Clean Energy Equipment

MD HB105

Real Property - Condominiums and Homeowners Associations - Governing Bodies and Annual Meetings

MD HB434

Maryland Condominium Act – Amendments to the Declaration

MD HB534

Cooperative Housing Corporations, Condominiums, and Homeowners Associations – Funding of Reserve Accounts

MD SB171

Private Passenger Motor Vehicle Liability Insurance - Enhanced Underinsured Motorist Coverage - Opt-Out Option

Similar Bills

HI SB287

Relating To Agricultural Districts.

HI HCR24

Requesting The Auditor To Conduct A Sunrise Analysis Of Condominium Association Managers.

HI HR23

Requesting The Auditor To Conduct A Sunrise Analysis Of Condominium Association Managers.

CA AB534

Common interest developments: mechanics liens.

IL HB2592

PROP TX-CONDO ABATEMENT

HI SB744

Relating To Condominiums.

HI SCR48

Requesting That The Department Of Commerce And Consumer Affairs Compile Pertinent Data To Determine The Appropriate Scope Of A Study Analyzing Whether Implementation In This State Of Laws Similar To Captive Insurance Laws Of Massachusetts Would Address This State's Residential Condominium Property Insurance Needs.

HI SB287

Relating To Agricultural Districts.