EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1541*
HOUSE BILL 1541
N1 5lr3601
CF 5lr3603
By: Delegate Holmes Delegates Holmes and Stein
Introduced and read first time: February 25, 2025
Assigned to: Rules and Executive Nominations
Re–referred to: Environment and Transportation, February 25, 2025
Committee Report: Favorable with amendments
House action: Adopted with floor amendments
Read second time: March 6, 2025
CHAPTER ______
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 IN TENDED FOR RESIDENTI AL USE. 18
2 HOUSE BILL 1541
(2) THIS SECTION DOES NOT APPLY TO DETACHED UNITS OF A 1
CONDOMINIUM COMPOSED ENTIRELY OF SIMILAR DETACHED UNI TS. 2
(B) (1) A UNIT OWNER SHALL MAI NTAIN A CONDOMINIUM UNIT OWNER 3
INSURANCE POLICY OR A SUBSTANTIALLY SIMILA R PROPERTY INSURANCE POLICY 4
ON THE UNIT. 5
(2) AN INSURANCE POLICY R EQUIRED UNDER PARAGR APH (1) OF 6
THIS SUBSECTION SHAL L INCLUDE: 7
(I) A WAIVER OF THE UNIT O WNER’S RIGHT TO SUBROGATI ON 8
AGAINST THE COUNCIL OF UNIT OWNERS AND T HE COUNCIL’S INSURANCE POLICIES ; 9
(II) COVERAGE FOR THE COUN CIL OF UNIT OWNERS ’ PROPERTY 10
INSURANCE DEDUCTIBLE OR A PORTION OF THE DEDUCTIBLE REQUIRED UNDER § 11
11–114 OF THIS TITLE; 12
(III) (II) A COVERAGE LIMIT THAT IS SUFFICIENT TO REP AIR 13
OR REPLACE THE UNIT OWNER’S PERSONAL PROPERTY OR THE CONTENTS OF T HE 14
UNIT; 15
(IV) (III) LOSS OF USE COVERAGE IN AN AMOUNT SUFFICI ENT 16
TO PROVIDE ALTERNATE HOUSING FOR AT LEAST 12 MONTHS IF THE UNIT O WNER 17
CANNOT LIVE IN THE U NIT; 18
(V) (IV) PERSONAL LIABILITY CO VERAGE OF AT LEAST 19
$500,000; 20
(VI) (V) LOSS ASSESSMENT COVER AGE OF AT LEAST $25,000; 21
AND 22
(VII) (VI) DWELLING OR BUILDING PROPERTY COVERAGE OF AT 23
LEAST THE GREATER OF : 24
1. $25,000; OR 25
2. THE AMOUNT NECESSARY TO REPAIR AND REPLAC E: 26
A. ALTERATIONS, ADDITIONS, BETTERMENTS , AND 27
INVESTMENTS MADE OR ACQUIRED BY THE CURR ENT UNIT OWNER ; AND 28
B. UPGRADES CONVEYED TO THE UNIT OWNER THAT 29
ARE THE RESPONSIBILI TY OF THE UNIT OWNER TO INSURE UNDER THE BYLAWS OF 30
THE CONDOMINIUM . 31 HOUSE BILL 1541 3
(C) THE BYLAWS OF A CONDOMINIUM MAY REQUIRE A UNIT OWNER TO 1
MAINTAIN AN INSURANC E POLICY THAT INCLUD ES COVERAGE AMOUNTS IN EXCESS 2
OF THE REQUIREMENTS UNDER SUBSECTION (B) OF THIS SECTION. 3
(D) EACH UNIT OWNER SHALL PRO VIDE EVIDENCE OF THE INSURANCE 4
POLICY REQUIRED UNDE R SUBSECTION (B) OF THIS SECTION TO T HE COUNCIL OF 5
UNIT OWNERS : 6
(1) ANNUALLY; AND 7
(2) ON REQUEST BY THE COU NCIL OF UNIT OWNERS . 8
(E) (1) IF A UNIT OWNER DOES NOT MAINTAIN AN INSU RANCE POLICY AS 9
REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION , THE COUN CIL OF UNIT 10
OWNERS MAY ACQUIRE A N INSURANCE POLICY O N BEHALF OF THE UNIT OWNER. 11
(2) A COUNCIL OF UNIT OWNE RS THAT ACQUIRES AN INSURANCE 12
POLICY ON BEHALF OF A UNIT OWNER UNDER P ARAGRAPH (1) OF THIS SUBSECTION 13
MAY CHARGE THE INSUR ANCE PREMIUM AS AN A SSESSMENT TO THE UNIT OWN ER. 14
(3) FOR AN INSURANCE POLI CY ACQUIRED ON BEHAL F OF A UNIT 15
OWNER UNDER THIS SUB SECTION, THE INSURANCE CARRIE R SHALL PAY DIRECTLY 16
TO THE COUNCIL OF UN IT OWNERS THE PORTIO N OF THE COUNCIL ’S DEDUCTIBLE 17
THAT THE UNIT OWNER IS RESPONSIBLE FOR UNDER § 11–114 OF THIS TITLE. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2025. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.