If you own a residential condominium in Maryland, we’d like to make you aware of a potential change to your risk exposure. Specifically, the Maryland Condominium Act requires each council of unit owners to maintain property insurance coverage for damages or destruction to the building. When damage to a condo building is found to originate from an individual unit, current law states that the owner of the condo is responsible for damages not to exceed $5,000.
During the 2020 session of the Maryland General Assembly, lawmakers voted to increase the cap on condo owners’ insurance deductibles - from $5,000 to $10,000.
Maryland condo owners should contact their insurance company to determine if their policy includes coverage for the new $10,000 deductible. The new law goes into effect October 1, 2020.
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