EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1541*
HOUSE BILL 1541
N1 5lr3601
CF 5lr3603
By: Delegate Holmes
Introduced and read first time: February 25, 2025
Assigned to: Rules and Executive Nominations
A BILL ENTITLED
AN ACT concerning 1
Condominiums – Mandatory Insurance Coverage 2
FOR the purpose of requiring a certain condominium unit owner to obtain a certain 3
insurance policy for the unit; requiring a certain insurance policy to include certain 4
provisions; authorizing a council of unit owners to acquire a certain insurance policy 5
and charge a certain assessment under certain circumstances; and generally relating 6
to mandatory insurance coverage for condominiums. 7
BY adding to 8
Article – Real Property 9
Section 11–114.3 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2024 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Real Property 15
11–114.3. 16
(A) (1) THIS SECTION APPLIES ONLY TO A CONDOMINIU M COMPOSED 17
ENTIRELY OF UNITS INTENDED FOR RESIDEN TIAL USE. 18
(2) THIS SECTION DOES NOT APPLY TO A CONDOMINIUM COMPOS ED 19
ENTIRELY OF SIMILAR DETACHED UNITS . 20
(B) (1) A UNIT OWNER SHALL MAINTAIN A CONDOMINIUM UNI T OWNER 21
INSURANCE POLICY OR A SUBSTANTIALLY SIMI LAR PROPERTY INSURAN CE POLICY 22
ON THE UNIT. 23 2 HOUSE BILL 1541
(2) AN INSURANCE POLICY R EQUIRED UNDER PARAGR APH (1) OF 1
THIS SUBSECTION SHAL L INCLUDE: 2
(I) A WAIVER OF THE UNIT OWNER ’S RIGHT TO SUBROGATION 3
AGAINST THE COUNCIL OF UNIT OWNE RS AND THE COUNCIL ’S INSURANCE POLICIES ; 4
(II) COVERAGE FOR THE COUN CIL OF UNIT OWNERS ’ PROPERTY 5
INSURANCE DEDUCTIBLE OR A PORTION OF THE DEDUCTIBLE REQUIRED UNDER § 6
11–114 OF THIS TITLE; 7
(III) A COVERAGE LIMIT THAT IS SUFFICIENT TO REP AIR OR 8
REPLACE THE UNIT OWNER’S PERSONAL PROPERTY OR THE CONTENTS OF THE UNIT; 9
(IV) LOSS OF USE COVERAGE IN AN AMOUNT SUFFICI ENT TO 10
PROVIDE ALTERNATE HO USING FOR AT LEAST 12 MONTHS IF THE UNIT O WNER 11
CANNOT LIVE IN THE U NIT; 12
(V) PERSONAL LIABILITY CO VERAGE OF AT LEAST $500,000; 13
(VI) LOSS ASSESSMENT COVER AGE OF AT LEAST $25,000; AND 14
(VII) DWELLING OR BUILDING PROPERTY COVERAGE OF AT 15
LEAST THE GREATER OF: 16
1. $25,000; OR 17
2. THE AMOUNT NECESSARY TO REPAIR AND REPLAC E: 18
A. ALTERATIONS, ADDITIONS, BETTERMENTS , AND 19
INVESTMENTS MADE OR ACQUIRED BY THE CURRENT UNIT OWNER; AND 20
B. UPGRADES CONVEYED TO THE UNIT OWNER THAT 21
ARE THE RESPONSIBILI TY OF THE UNIT OWNER TO INSURE UNDER THE BYLAWS OF 22
THE CONDOMINIUM . 23
(C) THE BYLAWS OF A CONDO MINIUM MAY REQUIRE A UNIT OWNER TO 24
MAINTAIN AN INSURANCE POLICY THAT INCLUDES COVERAGE AMOUNTS IN EXCESS 25
OF THE REQUIREMENTS UNDER SUBSECTION (B) OF THIS SECTION. 26
(D) EACH UNIT OWNER SHALL PROVIDE EVIDENCE OF THE INSURANCE 27
POLICY REQUIRED UNDER SUBSECTION (B) OF THIS SECTION TO THE COUNCIL OF 28
UNIT OWNERS : 29 HOUSE BILL 1541 3
(1) ANNUALLY; AND 1
(2) ON REQUEST BY THE COUNCIL OF UNIT OWNERS . 2
(E) (1) IF A UNIT OWNER DOES NOT MAINTAIN AN INSURANC E POLICY AS 3
REQUIRED UNDER SUBSECTION (B) OF THIS SECTION , THE COUNCIL OF UNIT 4
OWNERS MAY ACQUIRE AN INSURANCE POLICY ON BEHALF OF THE UNIT O WNER. 5
(2) A COUNCIL OF UNIT OWNE RS THAT ACQUIRES A N INSURANCE 6
POLICY ON BEHALF OF A UNIT OWNER UNDER P ARAGRAPH (1) OF THIS SUBSECTION 7
MAY CHARGE THE INSUR ANCE PREMIUM AS AN ASSESSMENT TO THE UNIT OWNER . 8
(3) FOR AN INSURANCE POLI CY ACQUIRED ON BEHAL F OF A UNIT 9
OWNER UNDER THIS SUB SECTION, THE INSURANCE CARRIER SH ALL PAY DIRECTLY 10
TO THE COUNCIL OF UN IT OWNERS THE PORTION OF THE COUNC IL’S DEDUCTIBLE 11
THAT THE UNIT OWNER IS RESPONSIBLE FOR U NDER § 11–114 OF THIS TITLE. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
October 1, 2025. 14