Condominiums - Mandatory Insurance Coverage

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0469*

HOUSE BILL 469
N1 6lr1701
HB 1541/25 – ENT
By: Delegate Holmes
Introduced and read first time: January 23, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Condominiums – Mandatory Insurance Coverage 2

FOR the purpose of requiring a certain condominium unit owner to obtain a certain 3
insurance policy for the unit; requiring a certain insurance policy to include certain 4
provisions; authorizing a council of unit owners to acquire a certain insurance policy 5
and charge a certain assessment under certain circumstances; and generally relating 6
to mandatory insurance coverage for condominiums. 7

BY adding to 8
Article – Real Property 9
Section 11–114.3 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2025 Supplement) 12

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14

Article – Real Property 15

11–114.3. 16

(A) (1) THIS SECTION APPLIES ONLY TO A CONDOMINIUM COM POSED 17
ENTIRELY OF UNITS INTENDED FOR RESIDENTIAL USE. 18

(2) THIS SECTION DOES NOT APPLY TO DETACHED UN ITS OF A 19
CONDOMINIUM. 20

(B) (1) A UNIT OWNER SHALL MAI NTAIN A CONDOMINIUM UNIT OWNER 21
INSURANCE POLICY OR A SUBSTANTIALLY SIMILAR PROPERTY INSURANCE POLICY 22
ON THE UNIT. 23
2 HOUSE BILL 469

(2) AN INSURANCE POLICY R EQUIRED UNDER PARAGR APH (1) OF 1
THIS SUBSECTION SHALL INCLUDE: 2

(I) COVERAGE FOR THE COUNCIL OF UNIT OWNERS’ PROPERTY 3
INSURANCE DEDUCTIBLE OR A PORTION OF THE DEDUCTIBLE REQUIRED UNDER § 4
11–114 OF THIS TITLE; 5

(II) A COVERAGE LIMIT THAT IS SUFFICIENT TO REP AIR OR 6
REPLACE THE UNIT OWNER’S PERSONAL PROPERTY OR THE CONTENTS OF THE UNIT; 7

(III) LOSS OF USE COVERAGE IN AN AMOUNT SUFFICI ENT TO 8
PROVIDE ALTERNATE HO USING FO R AT LEAST 12 MONTHS IF THE UNIT O WNER 9
CANNOT LIVE IN THE UNIT; 10

(IV) PERSONAL LIABILITY COVERAGE OF AT LEAST $500,000; 11

(V) LOSS ASSESSMENT COVERAGE OF AT LEAST $25,000; AND 12

(VI) DWELLING OR BUILDING PROPERTY COVERAGE OF AT 13
LEAST THE GREATER OF: 14

1. $25,000; OR 15

2. THE AMOUNT NECESSARY TO REPAIR AND REPLACE: 16

A. ALTERATIONS, ADDITIONS, BETTERMENTS, AND 17
INVESTMENTS MADE OR ACQUIRED BY THE CURRENT UNIT OWNER; AND 18

B. UPGRADES CONVEYED TO THE UNIT OWNER THAT 19
ARE THE RESPONSIBILITY OF THE UNIT OWNER TO INSURE UNDER THE BYLAWS OF 20
THE CONDOMINIUM. 21

(C) THE BYLAWS OF A CONDO MINIUM MAY REQUIRE A UNIT OWNER TO 22
MAINTAIN AN INSURANCE POLICY THAT INCLUDES COVERAGE AMOUNTS IN EXCESS 23
OF THE REQUIREMENTS UNDER SUBSECTION (B) OF THIS SECTION. 24

(D) EACH UNIT OWNER SHALL PRO VIDE EVIDENCE OF THE INSURANCE 25
POLICY REQUIRED UNDER SUBSECTION (B) OF THIS SECTION TO T HE COUNCIL OF 26
UNIT OWNERS: 27

(1) ANNUALLY; AND 28

(2) ON REQUEST BY THE COUNCIL OF UNIT OWNERS. 29

HOUSE BILL 469 3

(E) (1) IF A UNIT OWNER DOES NOT MAINTAIN AN INSURANCE POLICY AS 1
REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION , THE COUNCIL OF UNIT 2
OWNERS MAY ACQUIRE AN INSURANCE POLICY ON BEHALF OF THE UNIT OWNER. 3

(2) A COUNCIL OF UNIT OWNE RS THAT ACQUIRES AN INSURANCE 4
POLICY ON BEHALF OF A UNIT OWNER UNDER PARAGRAPH (1) OF THIS SUBSECTION 5
MAY CHARGE THE INSURANCE PREMIUM AS AN ASSESSMENT TO THE UNIT OWNER. 6

(3) FOR AN INSURANCE POLI CY ACQUIRED ON BEHAL F OF A UNIT 7
OWNER UNDER THIS SUBSECTION, THE INSURANCE CARRIER SHALL PAY DIRECTLY 8
TO THE COUNCIL OF UNIT OWNERS THE P ORTION OF THE COUNCI L’S DEDUCTIBLE 9
THAT THE UNIT OWNER IS RESPONSIBLE FOR UNDER § 11–114 OF THIS TITLE. 10

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2026. 12