Real Property - Satisfaction of a Mortgage - Required Homeowner's Insurance (Cassidy's Law)
Impact
If enacted, Cassidy's Law would essentially alter existing real property regulations by introducing a new requirement for homeowners without mortgages. While some may argue that this law enhances safety and accountability among property owners, its implementation could also bring potential challenges. Property owners might face increased insurance premiums as they comply with this legislation, thereby raising the cost of homeownership for those who currently do not carry insurance.
Summary
Senate Bill 52, also known as Cassidy's Law, proposes to mandate that all owners of residential real property in Maryland, who are not subject to a mortgage, maintain a minimum level of homeowner's insurance. This insurance must include liability coverage of at least $100,000 for bodily or personal injury that may occur on the property. The primary goal of this legislation is to ensure that property owners carry adequate insurance to cover potential liabilities, thus protecting the interests of both homeowners and the public.
Contention
Debate around SB52 includes concerns about the implications for property owners who already navigate various financial burdens associated with home ownership. Critics may argue that imposing mandatory insurance requirements could disproportionately affect low-income homeowners or those on fixed incomes. There may also be discussions regarding the accessibility of affordable insurance options in the market. Additionally, the enforcement mechanisms for ensuring compliance with this new requirement could become contentious, with questions about how the state will monitor and enforce these insurance mandates.
An Act Requiring Mortgagees To Deliver Mortgage Releases To The Town Clerk And To Accept Certain Forms Of Payment Tendered In Satisfaction Or Partial Satisfaction Of A Mortgage.
Insurance; mortgage on real estate; modifying percentages of company's admitted assets that may be invested in certain mortgage loans, money mortgages and real property; emergency.