On October 1, 2023, a revised version of Maryland’s Condominium Act went into effect, with changes to insurance responsibilities surrounding detached condominium units.
Under the previous version of Maryland’s Condominium Act, a council of unit owners was required to maintain comprehensive property insurance on all common elements and all units, exclusive of improvements and betterments. Now, the council is no longer required to insure residential, detached condominium units. Instead, the unit owner is responsible for insuring the entirety of the unit.
Under the amended Act, the council is now responsible for insuring (1) for attached or multifamily dwellings, the common elements and units, exclusive of improvements and betterments, and (2) for detached units, only common elements. Of course, the council may always elect to provide greater insurance protection that is required by the Act.
You can find the Maryland Insurance Administration Bulletin discussing these changes here.
Insurance claims involving condominium units can present complicated adjustment and legal issues, even for experienced adjusters. For additional guidance on coverage disputes involving condominium losses, please contact any member of HKR’s team.