Maryland 2025 Regular Session

Maryland Senate Bill SB463 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	sb0463
6	6
7	7	SENATE BILL 463
8	8	N1 5lr0907
9	9	CF 5lr2588
10	10	By: Senator King
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	Real Property – Condominiums – Responsibility for Property Insurance 2
19	19	Deductibles 3
20	20
21	21	FOR the purpose of increasing the maximum amount of the council of unit owners’ property 4
22	22	insurance deductible for which a unit owner is respons ible under certain 5
23	23	circumstances; and generally relating to the responsibility for property insurance 6
24	24	deductibles in condominiums. 7
25	25
26	26	BY repealing and reenacting, with amendments, 8
27	27	Article – Real Property 9
28	28	Section 11–114(g) 10
29	29	Annotated Code of Maryland 11
30	30	(2023 Replacement Volume and 2024 Supplement) 12
31	31
32	32	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
33	33	That the Laws of Maryland read as follows: 14
34	34
35	35	Article – Real Property 15
36	36
37	37	11–114. 16
38	38
39	39	(g) (1) Subject to the applicable coverage specified under subsection (a)(1) of 17
40	40	this section, any portion of the common elements and the units, exclusive of improvements 18
41	41	and betterments installed in the units by unit owners other than the developer, damaged 19
42	42	or destroyed shall be repaired or replaced promptly by the council of unit owners unless: 20
43	43
44	44	(i) The condominium is terminated; 21
45	45
46	46	(ii) Repair or replacement would be illegal under any State or local 22
47	47	health or safety statute or ordinance; or 23
48	48	2 SENATE BILL 463
49	49
50	50
51	51	(iii) 80 percent of the unit owners, including every owner of a unit or 1
52	52	assigned limited common element which will not be rebuilt, vote not to rebuild. 2
53	53
54	54	(2) (i) 1. The cost of repair or replacement in excess of insurance 3
55	55	proceeds and reserves is a common expense. 4
56	56
57	57	2. A property insurance deductible is not a cost of repair or 5
58	58	replacement in excess of insurance proceeds. 6
59	59
60	60	(ii) If the cause of any damage to or destruction of any portion of the 7
61	61	condominium originates from the common elements or an event outside of the condominium 8
62	62	units and common elements, the council of unit owners’ property insurance deductible is a 9
63	63	common expense. 10
64	64
65	65	(iii) 1. If the cause of any damage to or destruction of any portion 11
66	66	of the condominium originates from a unit, the owner of the unit where the cause of the 12
67	67	damage or destruction originated is responsible for the council of unit owners’ property 13
68	68	insurance deductible not to exceed [$10,000] $20,000. 14
69	69
70	70	2. The council of unit owners shall inform each unit owner 15
71	71	annually in writing of: 16
72	72
73	73	A. The unit owner’s responsibility for the council of unit 17
74	74	owners’ property insurance deductible; and 18
75	75
76	76	B. The amount of the deductible. 19
77	77
78	78	3. The council of unit owners’ property insurance deductible 20
79	79	amount exceeding the [$10,000] $20,000 responsibility of the unit owner is a common 21
80	80	expense. 22
81	81
82	82	(iv) In the same manner as provided under § 11–110 of this title, the 23
83	83	council of unit owners may make an annual assessment against the unit owner responsible 24
84	84	under subparagraph (iii) of this paragraph. 25
85	85
86	86	(3) If the damaged or destroyed portion of the condominium is not repaired 26
87	87	or replaced: 27
88	88
89	89	(i) The insurance proceeds attributable to the damaged common 28
90	90	elements shall be used to restore the damaged area to a condition compatible with the 29
91	91	remainder of the condominium; 30
92	92
93	93	(ii) The insurance proceeds attributable to units and limited 31
94	94	common elements which are not rebuilt shall be distributed to the owners of those units 32
95	95	and the owners of the units to which those limited common elements were assigned; and 33
96	96	SENATE BILL 463 3
97	97
98	98
99	99	(iii) The remainder of the proceeds shall be distributed to all the unit 1
100	100	owners in proportion to their percentage interest in the common elements. 2
101	101
102	102	(4) (i) If the unit owners vote not to rebuild any unit, that unit’s entire 3
103	103	common element interest, votes in the council of unit owners, and common expense liability 4
104	104	are automatically reallocated upon the vote as if the unit had been condemned under § 5
105	105	11–112 of this title, and the council of unit owners promptly shall prepare, execute, and 6
106	106	record an amendment to the declaration reflecting the reallocations. 7
107	107
108	108	(ii) Notwithstanding the provisions of this subsection, § 11–123 of 8
109	109	this title governs the distribution of insurance proceeds if the condominium is terminated. 9
110	110
111	111	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to all 10
112	112	policies of property and casualty insurance issued, delivered, or renewed in the State to a 11
113	113	condominium council of unit owners as required under § 11–114 of the Real Property Article 12
114	114	on or after October 1, 2025. 13
115	115
116	116	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
117	117	October 1, 2025. 15