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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0332*
SENATE BILL 332
N1 6lr1721
HB 449/25 – ENT
By: Senator Kramer
Introduced and read first time: January 23, 2026
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Condominiums – Property Insurance Deductibles – Unit Owner Responsibility 2
FOR the purpose of increasing the maximum amount of the council of unit owners’ property 3
insurance deductible for which a unit owner is responsib le under certain 4
circumstances; providing that a contract for the resale of a condominium unit by a 5
unit owner other than the developer is not enforceable unless it contains a written 6
notice of the unit owner’s responsibility for the amount of the deductib le where 7
damage or destruction originates from a unit; and generally relating to condominium 8
unit owners’ responsibility for the council of unit owners’ insurance deductibles. 9
BY repealing and reenacting, without amendments, 10
Article – Real Property 11
Section 11–114(a) and (i) 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2025 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Real Property 16
Section 11–114(g) and 11–135(a)(6) and (b)(5) 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2025 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Real Property 22
11–114. 23
2 SENATE BILL 332
(a) Commencing not later than the time of the first conveyance of a unit to a 1
person other than the developer, the council of unit owners shall maintain, to the extent 2
reasonably available: 3
(1) Property insurance against risks of direct physical loss commonly 4
insured against in amounts determined by the council of unit owners, but not less than any 5
amounts specified in the declaration or bylaws: 6
(i) For attached units, multifamily dwelling units, or detached units 7
located within a condominium not composed entirely of similar detached units, on the 8
common elements and units, exclusive of improvements and betterments installed in units 9
by unit owners other than the developer; and 10
(ii) For detached units located within a condominium composed 11
entirely of similar detached units, on the common elements; and 12
(2) Comprehensive general liability insurance, including medical 13
payments insurance, in an amount determined by the council of unit owners, but not less 14
than any amount specified in the declaration or bylaws, covering occurrences commonly 15
insured against for death, bodily injury, and property damage arising out of or in connection 16
with the use, ownership, or maintenance of the common elements. 17
(g) (1) Subject to the applicable coverage specified under subsection (a)(1) of 18
this section, any portion of the common elements and the units, exclusive of improvements 19
and betterments installed in the units by unit owners other than the developer, damaged 20
or destroyed shall be repaired or replaced promptly by the council of unit owners unless: 21
(i) The condominium is terminated; 22
(ii) Repair or replacement would be illegal under any State or local 23
health or safety statute or ordinance; or 24
(iii) 80 percent of the unit owners, including every owner of a unit or 25
assigned limited common element which will not be rebuilt, vote not to rebuild. 26
(2) (i) 1. The cost of repair or replacement in excess of insurance 27
proceeds and reserves is a common expense. 28
2. A property insurance deductible is not a cost of repair or 29
replacement in excess of insurance proceeds. 30
(ii) If the cause of any damage to or destruction of any portion of the 31
condominium originates from the common elements or an event outside of the condominium 32
units and common elements, the council of unit owners’ property insurance deductible is a 33
common expense. 34
SENATE BILL 332 3
(iii) 1. If the cause of any damage to or destruction of any portion 1
of the condominium originates from a unit, the owner of the unit where the cause of the 2
damage or destruction originated is responsible for the council of unit owners’ pro perty 3
insurance deductible not to exceed [$10,000] $25,000. 4
2. The council of unit owners shall inform each unit owner 5
annually in writing of: 6
A. The unit owner’s responsibility for the council of unit 7
owners’ property insurance deductible; and 8
B. The amount of the deductible. 9
3. The council of unit owners’ property insurance deductible 10
amount exceeding the [$10,000] $25,000 responsibility of the unit owner is a common 11
expense. 12
(iv) In the same manner as provided under § 11–110 of this title, the 13
council of unit owners may make an annual assessment against the unit owner responsible 14
under subparagraph (iii) of this paragraph. 15
(3) If the damaged or destroyed portion of the condominium is not repaired 16
or replaced: 17
(i) The insurance proceeds attributable to the damaged common 18
elements shall be used to restore the damaged area to a condition compatible with the 19
remainder of the condominium; 20
(ii) The insurance proceeds attributable to units and limited 21
common elements whic h are not rebuilt shall be distributed to the owners of those units 22
and the owners of the units to which those limited common elements were assigned; and 23
(iii) The remainder of the proceeds shall be distributed to all the unit 24
owners in proportion to their percentage interest in the common elements. 25
(4) (i) If the unit owners vote not to rebuild any unit, that unit’s entire 26
common element interest, votes in the council of unit owners, and common expense liability 27
are automatically reallocated upon th e vote as if the unit had been condemned under § 28
11–112 of this title, and the council of unit owners promptly shall prepare, execute, and 29
record an amendment to the declaration reflecting the reallocations. 30
(ii) Notwithstanding the provisions of this subsection, § 11 –123 of 31
this title governs the distribution of insurance proceeds if the condominium is terminated. 32
(i) The provisions of this section do not apply to a condominium all of whose units 33
are intended for nonresidential use. 34
4 SENATE BILL 332
11–135. 1
(a) Except as provided in subsection (b) of this section, a contract for the resale of 2
a unit by a unit owner other than a developer is not enforceable unless the contract of sale 3
contains in conspicuous type a notice in the form specified in subsection (g)(1) of this 4
section, and the unit owner furnishes to the purchaser not later than 15 days prior to 5
closing: 6
(6) A written notice of the unit owner’s responsibility for the council of unit 7
owners’ property insurance deductible and the amount of the deductible, INCLUDING THE 8
UNIT OWNER ’S RESPONSIBILITY WHE N DAMAGE OR DESTRUCT ION ORIGINATES 9
FROM A UNIT. 10
(b) A contract for the resale by a unit owner other than a developer of a unit in a 11
condominium containing less than 7 units is not enforceable unles s the contract of sale 12
contains in conspicuous type a notice in the form specified in subsection (g)(2) of this 13
section, and the unit owner furnishes to the purchaser not later than 15 days prior to 14
closing: 15
(5) A written notice of the unit owner’s responsibility for the council of unit 16
owners’ property insurance deductible and the amount of the deductible, INCLUDING THE 17
UNIT OWNER ’S RESPONSIBILITY WHE N DAMAGE OR DESTRUCT ION ORIGINATES 18
FROM A UNIT. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act s hall take effect 20
October 1, 2026. 21