Maryland 2025 Regular Session

Maryland Senate Bill SB446 Compare Versions

Only one version of the bill is available at this time.

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	5	sb0446
6	6
7	7	SENATE BILL 446
8	8	N1 5lr1917
9	9	CF HB 449
10	10	By: Senator Beidle
11	11	Introduced and read first time: January 21, 2025
12	12	Assigned to: Judicial Proceedings
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Condominiums – Property Insurance Deductibles – Unit Owner Responsibility 2
19	19
20	20	FOR the purpose of increasing the maximum amount of the council of unit owners’ property 3
21	21	insurance deductible for which a unit owner is responsible un der certain 4
22	22	circumstances; and generally relating to condominium unit owners’ responsibility for 5
23	23	the council of unit owners’ insurance deductibles. 6
24	24
25	25	BY repealing and reenacting, without amendments, 7
26	26	Article – Real Property 8
27	27	Section 11–114(a) and (i) 9
28	28	Annotated Code of Maryland 10
29	29	(2023 Replacement Volume and 2024 Supplement) 11
30	30
31	31	BY repealing and reenacting, with amendments, 12
32	32	Article – Real Property 13
33	33	Section 11–114(g) 14
34	34	Annotated Code of Maryland 15
35	35	(2023 Replacement Volume and 2024 Supplement) 16
36	36
37	37	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
38	38	That the Laws of Maryland read as follows: 18
39	39
40	40	Article – Real Property 19
41	41
42	42	11–114. 20
43	43
44	44	(a) Commencing not later than the time of the first conveyance of a unit to a 21
45	45	person other than the developer, the council of unit owners shall maintain, to the extent 22
46	46	reasonably available: 23
47	47	2 SENATE BILL 446
48	48
49	49
50	50	(1) Property insurance against risks of direct physical loss commonly 1
51	51	insured against in amounts determined by the council of unit owners, but not less than any 2
52	52	amounts specified in the declaration or bylaws: 3
53	53
54	54	(i) For attached units, multifamily dwelling units, or detached units 4
55	55	located within a condominium not composed entirely of similar detached units, on the 5
56	56	common elements and units, exclusive of improvements and betterments installed in units 6
57	57	by unit owners other than the developer; and 7
58	58
59	59	(ii) For detached units located within a condominium composed 8
60	60	entirely of similar detached units, on the common elements; and 9
61	61
62	62	(2) Comprehensive general liability insurance, including medical 10
63	63	payments insurance, in an amount determined by the council of unit owners, but not less 11
64	64	than any amount specified in the declaration or bylaws, covering occurrences commonly 12
65	65	insured against for death, bodily injury, and property damage arising out of or in connection 13
66	66	with the use, ownership, or maintenance of the common elements. 14
67	67
68	68	(g) (1) Subject to the applicable coverage specified under subsection (a)(1) of 15
69	69	this section, any portion of the common elements and the units, exclusive of improvements 16
70	70	and betterments installed in the units by unit owners other than the developer, damaged 17
71	71	or destroyed shall be repaired or replaced promptly by the council of unit owners unless: 18
72	72
73	73	(i) The condominium is terminated; 19
74	74
75	75	(ii) Repair or replacement would be illegal under any State or local 20
76	76	health or safety statute or ordinance; or 21
77	77
78	78	(iii) 80 percent of the unit owners, including every owner of a unit or 22
79	79	assigned limited common element which will not be rebuilt, vote not to rebuild. 23
80	80
81	81	(2) (i) 1. The cost of repair or replacement in excess of insurance 24
82	82	proceeds and reserves is a common expense. 25
83	83
84	84	2. A property insurance deductible is not a cost of repair or 26
85	85	replacement in excess of insurance proceeds. 27
86	86
87	87	(ii) If the cause of any damage to or destruction of any portion of the 28
88	88	condominium originates from the common elements or an event outside of the condominium 29
89	89	units and common elements, the council of unit owners’ property insurance deductible is a 30
90	90	common expense. 31
91	91
92	92	(iii) 1. If the cause of any damage to or destruction of any portion 32
93	93	of the condominium originates from a unit, the owner of the unit where the cause of the 33
94	94	damage or destruction originated is responsible for the council of unit owners’ property 34
95	95	insurance deductible not to exceed [$10,000] $25,000. 35
96	96	SENATE BILL 446 3
97	97
98	98
99	99	2. The council of unit owners shall inform each unit owner 1
100	100	annually in writing of: 2
101	101
102	102	A. The unit owner’s responsibility for the council of unit 3
103	103	owners’ property insurance deductible; and 4
104	104
105	105	B. The amount of the deductible. 5
106	106
107	107	3. The council of unit owners’ property insurance deductible 6
108	108	amount exceeding the [$10,000] $25,000 responsibility of the unit owner is a common 7
109	109	expense. 8
110	110
111	111	(iv) In the same manner as provided under § 11–110 of this title, the 9
112	112	council of unit owners may make an annual assessment against the unit owner responsible 10
113	113	under subparagraph (iii) of this paragraph. 11
114	114
115	115	(3) If the damaged or destroyed portion of the condominium is not repaired 12
116	116	or replaced: 13
117	117
118	118	(i) The insurance proceeds attributable to the damaged common 14
119	119	elements shall be used to restore the damaged area to a condition compatible with the 15
120	120	remainder of the condominium; 16
121	121
122	122	(ii) The insurance proceeds attributable to units and limited 17
123	123	common elements which are not rebuilt shall be distributed to the owners of those units 18
124	124	and the owners of the units to which those limited common elements were assigned; and 19
125	125
126	126	(iii) The remainder of the proceeds shall be distributed to all the unit 20
127	127	owners in proportion to their percentage interest in the common elements. 21
128	128
129	129	(4) (i) If the unit owners vote not to rebuild any unit, that unit’s entire 22
130	130	common element interest, votes in the council of unit owners, and common expense liability 23
131	131	are automatically reallocated upon the vote as if the unit had been condemned under § 24
132	132	11–112 of this title, and the council of unit owners promptly shall prepare, execute, and 25
133	133	record an amendment to the declaration reflecting the reallocations. 26
134	134
135	135	(ii) Notwithstanding the provisions of this subsection, § 11–123 of 27
136	136	this title governs the distribution of insurance proceeds if the condominium is terminated. 28
137	137
138	138	(i) The provisions of this section do not apply to a condominium all of whose units 29
139	139	are intended for nonresidential use. 30
140	140
141	141	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
142	142	October 1, 2025. 32
143	143