Who Pays the Master Policy Deductible in MD?
The Unit Owner Pays:
- When the claim starts in their unit
- As long as the Association tells the owner each year:
- the amount of the deductible
- that the owner is responsible for the deductible
- But the unit owner can only be assessed a maximum of $5,000
The Association Pays:
- When the damage starts outside the unit (wind, flood)
- When the damage starts in a common area
- When the deductible amount is greater than $5,000
A unit owner can purchase a Condominium Unit Owner policy that covers the master policy deductible, in addition to the contents and improvements and betterments of their homes.
A POSSIBLE INCREASE to $10,000
In 2019, the Maryland State Legislature considered increasing the deductible amount to charge back to a homeowner to $10,000. The bill passed the House, but the Senate did not have time to hear the bill in committee. It should go back to the legislature in 2020.
Who Pays the Master Policy Deductible in DE?
What is your condominium association’s master policy deductible?
- Is it higher for wind damage?
- Is it higher for water loss damage?
- Is there an additional deductible for flooding?
Are you, the unit owner, responsible for the deductible?
The bylaws of the association will determine who is responsible for the deductible – the unit owner or the community association.
Condominium Unit Owner Policies (sometimes referred to as an HO6) are going to respond differently when paying the master policy deductible.
- Does your carrier pay the full master policy deductible? (Some cap at $1,000.)
With expertise in the Community Association field, we will happily review your community policies against your condominium unit owner policy to make sure you are adequately covered.