Maryland 2025 Regular Session

Maryland House Bill HB1541 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		hb1541
9	6
10	7		HOUSE BILL 1541
11	8		N1 5lr3601
12	9		CF 5lr3603
13		-	By: Delegate Holmes ~~Delegates Holmes and Stein~~
	10	+	By: Delegate Holmes
14	11		Introduced and read first time: February 25, 2025
15	12		Assigned to: Rules and Executive Nominations
16		-	Re–referred to: Environment and Transportation, February 25, 2025
17		-	Committee Report: Favorable with amendments
18		-	House action: Adopted with floor amendments
19		-	Read second time: March 6, 2025
20	13
21		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
22	15
23	16		AN ACT concerning 1
24	17
25	18		Condominiums – Mandatory Insurance Coverage 2
26	19
27	20		FOR the purpose of requiring a certain condominium unit owner to obtain a certain 3
28	21		insurance policy for the unit; requiring a certain insurance policy to include certain 4
29	22		provisions; authorizing a council of unit owners to acquire a certain insurance policy 5
30	23		and charge a certain assessment under certain circumstances; and generally relating 6
31	24		to mandatory insurance coverage for condominiums. 7
32	25
33	26		BY adding to 8
34	27		Article – Real Property 9
35	28		Section 11–114.3 10
36	29		Annotated Code of Maryland 11
37	30		(2023 Replacement Volume and 2024 Supplement) 12
38	31
39	32		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
40	33		That the Laws of Maryland read as follows: 14
41	34
42	35		Article – Real Property 15
43	36
44	37		11–114.3. 16
45	38
46	39		(A) (1) THIS SECTION APPLIES ONLY TO A CONDOMINIU M COMPOSED 17
47	40		ENTIRELY OF UNITS INTENDED FOR RESIDEN TIAL USE. 18
48		-	2 HOUSE BILL 1541
49	41
	42	+	(2) THIS SECTION DOES NOT APPLY TO A CONDOMINIUM COMPOS ED 19
	43	+	ENTIRELY OF SIMILAR DETACHED UNITS . 20
50	44
51		-	(2) THIS SECTION DOES NOT APPLY TO DETACHED UNITS OF A 1
52		-	CONDOMINIUM COMPOSED ENTIRELY OF SIMILAR DETACHED UNI TS. 2
53		-
54		-	(B) (1) A UNIT OWNER SHALL MAI NTAIN A CONDOMINIUM UNIT OWNER 3
55		-	INSURANCE POLICY OR A SUBSTANTIALLY SIMILA R PROPERTY INSURANCE POLICY 4
56		-	ON THE UNIT. 5
57		-
58		-	(2) AN INSURANCE POLICY R EQUIRED UNDER PARAGR APH (1) OF 6
59		-	THIS SUBSECTION SHAL L INCLUDE: 7
60		-
61		-	(I) A WAIVER OF THE UNIT O WNER’S RIGHT TO SUBROGATI ON 8
62		-	AGAINST THE COUNCIL OF UNIT OWNERS AND T HE COUNCIL’S INSURANCE POLICIES ; 9
63		-
64		-	(II) COVERAGE FOR THE COUN CIL OF UNIT OWNERS ’ PROPERTY 10
65		-	INSURANCE DEDUCTIBLE OR A PORTION OF THE DEDUCTIBLE REQUIRED UNDER § 11
66		-	11–114 OF THIS TITLE; 12
67		-
68		-	(III) (II) A COVERAGE LIMIT THAT IS SUFFICIENT TO REP AIR 13
69		-	OR REPLACE THE UNIT OWNER’S PERSONAL PROPERTY OR THE CONTENTS OF T HE 14
70		-	UNIT; 15
71		-
72		-	(IV) (III) LOSS OF USE COVERAGE IN AN AMOUNT SUFFICI ENT 16
73		-	TO PROVIDE ALTERNATE HOUSING FOR AT LEAST 12 MONTHS IF THE UNIT O WNER 17
74		-	CANNOT LIVE IN THE U NIT; 18
75		-
76		-	(V) (IV) PERSONAL LIABILITY CO VERAGE OF AT LEAST 19
77		-	$500,000; 20
78		-
79		-	(VI) (V) LOSS ASSESSMENT COVER AGE OF AT LEAST $25,000; 21
80		-	AND 22
81		-
82		-	(VII) (VI) DWELLING OR BUILDING PROPERTY COVERAGE OF AT 23
83		-	LEAST THE GREATER OF : 24
84		-
85		-	1. $25,000; OR 25
86		-
87		-	2. THE AMOUNT NECESSARY TO REPAIR AND REPLAC E: 26
88		-
89		-	A. ALTERATIONS, ADDITIONS, BETTERMENTS , AND 27
90		-	INVESTMENTS MADE OR ACQUIRED BY THE CURR ENT UNIT OWNER ; AND 28
91		-
92		-	B. UPGRADES CONVEYED TO THE UNIT OWNER THAT 29
93		-	ARE THE RESPONSIBILI TY OF THE UNIT OWNER TO INSURE UNDER THE BYLAWS OF 30
94		-	THE CONDOMINIUM . 31 HOUSE BILL 1541 3
	45	+	(B) (1) A UNIT OWNER SHALL MAINTAIN A CONDOMINIUM UNI T OWNER 21
	46	+	INSURANCE POLICY OR A SUBSTANTIALLY SIMI LAR PROPERTY INSURAN CE POLICY 22
	47	+	ON THE UNIT. 23 2 HOUSE BILL 1541
95	48
96	49
97	50
98		-	(C) THE BYLAWS OF A CONDOMINIUM MAY REQUIRE A UNIT OWNER TO 1
99		-	MAINTAIN AN INSURANC E POLICY THAT INCLUD ES COVERAGE AMOUNTS IN EXCESS 2
100		-	OF THE REQUIREMENTS UNDER SUBSECTION (B) OF THIS SECTION. 3
	51	+	(2) AN INSURANCE POLICY R EQUIRED UNDER PARAGR APH (1) OF 1
	52	+	THIS SUBSECTION SHAL L INCLUDE: 2
101	53
102		-	(D) EACH UNIT OWNER SHALL PRO VIDE EVIDENCE OF THE INSURANCE 4
103		-	POLICY REQUIRED UNDE R SUBSECTION (B) OF THIS SECTION TO T HE COUNCIL OF 5
104		-	UNIT OWNERS : 6
	54	+	(I) A WAIVER OF THE UNIT OWNER ’S RIGHT TO SUBROGATION 3
	55	+	AGAINST THE COUNCIL OF UNIT OWNE RS AND THE COUNCIL ’S INSURANCE POLICIES ; 4
105	56
106		-	(1) ANNUALLY; AND 7
	57	+	(II) COVERAGE FOR THE COUN CIL OF UNIT OWNERS ’ PROPERTY 5
	58	+	INSURANCE DEDUCTIBLE OR A PORTION OF THE DEDUCTIBLE REQUIRED UNDER § 6
	59	+	11–114 OF THIS TITLE; 7
107	60
108		-	(2) ON REQUEST BY THE COU NCIL OF UNIT OWNERS . 8
	61	+	(III) A COVERAGE LIMIT THAT IS SUFFICIENT TO REP AIR OR 8
	62	+	REPLACE THE UNIT OWNER’S PERSONAL PROPERTY OR THE CONTENTS OF THE UNIT; 9
109	63
110		-	(E) ~~(1) IF A UNIT OWNER DOES NOT MAINTAIN~~ AN ~~INSU RANCE POLICY AS 9~~
111		-	~~REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION ,~~ THE ~~COUN CIL OF~~ UNIT 10
112		-	~~OWNERS MAY ACQUIRE A N INSURANCE POLICY O N BEHALF OF~~ THE ~~UNIT OWNER.~~ 11
	64	+	(IV) LOSS OF USE COVERAGE IN AN AMOUNT SUFFICI ENT TO 10
	65	+	PROVIDE ALTERNATE HO USING FOR AT LEAST 12 MONTHS IF THE UNIT O WNER 11
	66	+	CANNOT LIVE IN THE U NIT; 12
113	67
114		-	(2) A COUNCIL OF UNIT OWNE RS THAT ACQUIRES AN INSURANCE 12
115		-	POLICY ON BEHALF OF A UNIT OWNER UNDER P ARAGRAPH (1) OF THIS SUBSECTION 13
116		-	MAY CHARGE THE INSUR ANCE PREMIUM AS AN A SSESSMENT TO THE UNIT OWN ER. 14
	68	+	(V) PERSONAL LIABILITY CO VERAGE OF AT LEAST $500,000; 13
117	69
118		-	(3) FOR AN INSURANCE POLI CY ACQUIRED ON BEHAL F OF A UNIT 15
119		-	OWNER UNDER THIS SUB SECTION, THE INSURANCE CARRIE R SHALL PAY DIRECTLY 16
120		-	TO THE COUNCIL OF UN IT OWNERS THE PORTIO N OF THE COUNCIL ’S DEDUCTIBLE 17
121		-	THAT THE UNIT OWNER IS RESPONSIBLE FOR UNDER § 11–114 OF THIS TITLE. 18
	70	+	(VI) LOSS ASSESSMENT COVER AGE OF AT LEAST $25,000; AND 14
122	71
123		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
124		-	October 1, 2025. 20
	72	+	(VII) DWELLING OR BUILDING PROPERTY COVERAGE OF AT 15
	73	+	LEAST THE GREATER OF: 16
	74	+
	75	+	1. $25,000; OR 17
	76	+
	77	+	2. THE AMOUNT NECESSARY TO REPAIR AND REPLAC E: 18
	78	+
	79	+	A. ALTERATIONS, ADDITIONS, BETTERMENTS , AND 19
	80	+	INVESTMENTS MADE OR ACQUIRED BY THE CURRENT UNIT OWNER; AND 20
	81	+
	82	+	B. UPGRADES CONVEYED TO THE UNIT OWNER THAT 21
	83	+	ARE THE RESPONSIBILI TY OF THE UNIT OWNER TO INSURE UNDER THE BYLAWS OF 22
	84	+	THE CONDOMINIUM . 23
	85	+
	86	+	(C) THE BYLAWS OF A CONDO MINIUM MAY REQUIRE A UNIT OWNER TO 24
	87	+	MAINTAIN AN INSURANCE POLICY THAT INCLUDES COVERAGE AMOUNTS IN EXCESS 25
	88	+	OF THE REQUIREMENTS UNDER SUBSECTION (B) OF THIS SECTION. 26
	89	+
	90	+	(D) EACH UNIT OWNER SHALL PROVIDE EVIDENCE OF THE INSURANCE 27
	91	+	POLICY REQUIRED UNDER SUBSECTION (B) OF THIS SECTION TO THE COUNCIL OF 28
	92	+	UNIT OWNERS : 29 HOUSE BILL 1541 3
125	93
126	94
127	95
	96	+	(1) ANNUALLY; AND 1
128	97
129		-	Approved:
130		-	________________________________________________________________________________
131		-	Governor.
132		-	________________________________________________________________________________
133		-	Speaker of the House of Delegates.
134		-	________________________________________________________________________________
135		-	President of the Senate.
	98	+	(2) ON REQUEST BY THE COUNCIL OF UNIT OWNERS . 2
	99	+
	100	+	(E) (1) IF A UNIT OWNER DOES NOT MAINTAIN AN INSURANC E POLICY AS 3
	101	+	REQUIRED UNDER SUBSECTION (B) OF THIS SECTION , THE COUNCIL OF UNIT 4
	102	+	OWNERS MAY ACQUIRE AN INSURANCE POLICY ON BEHALF OF THE UNIT O WNER. 5
	103	+
	104	+	(2) A COUNCIL OF UNIT OWNE RS THAT ACQUIRES A N INSURANCE 6
	105	+	POLICY ON BEHALF OF A UNIT OWNER UNDER P ARAGRAPH (1) OF THIS SUBSECTION 7
	106	+	MAY CHARGE THE INSUR ANCE PREMIUM AS AN ASSESSMENT TO THE UNIT OWNER . 8
	107	+
	108	+	(3) FOR AN INSURANCE POLI CY ACQUIRED ON BEHAL F OF A UNIT 9
	109	+	OWNER UNDER THIS SUB SECTION, THE INSURANCE CARRIER SH ALL PAY DIRECTLY 10
	110	+	TO THE COUNCIL OF UN IT OWNERS THE PORTION OF THE COUNC IL’S DEDUCTIBLE 11
	111	+	THAT THE UNIT OWNER IS RESPONSIBLE FOR U NDER § 11–114 OF THIS TITLE. 12
	112	+
	113	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
	114	+	October 1, 2025. 14