$10,000 Condominium Master Policy Deductible
In Maryland, the master policy deductible can be assessed to the unit owner of origin – or where the claim started.
These are the rules:
- The unit owner can only be assessed a maximum of $5,000
- The association must annually tell the unit owner the amount of the deductible
- The association must tell the owners they are responsible for the deductible
- Any deductible amount over $5,000 will be a common expense of the association
- Any damage occurring from common elements will be a common expense
The Maryland House of Delegates voted unanimously on March 7, 2019 to increase the unit owner responsibility to $10,000. The Senate will be reviewing the bill. If signed by the governor, this will go into effect on October 1, 2019.
The bill also clarifies that damages originating outside of the condominium units and common elements would also be a common expense.
The master policy deductible can be paid by a condominium unit owner policy. These policies are not mandated by the State of Maryland. Association bylaws and mortgage companies can require an individual unit owner policy.
If a condominium chooses to increase the deductible to $10,000, they may see some savings on the premium. The condominium unit owner policy, if notified of the change, may see an increase in premium. The impact of this legislation will be different depending on the association.
We will continue to update you on this piece of legislation. Click here to read House Bill 249.