Dear Condominium Unit Owner:
Your Condominium Association and Management Company have the annual task of keeping you informed about your responsibility in regard to the Master Insurance Policy that covers your unit. The Master Policy, held by the Condominium Association, restores your unit in the event of sudden or accidental damage to the original state as it was first conveyed and protects the common areas of the Condominium.
All Master Insurance Policies carry a deductible amount. Effective, October 1, 2020, Maryland Law changed to provide that condominium associations, at the Association’s discretion, may collect the deductible portion of its policy from the owner of the unit where the cause of the damage originated, up to a limit of $10,000. Prior to October 1, 2020 the maximum chargeback amount was $5,000. The deductible on your Master Policy is $5,000.00. In the past, this only applied to associations that amended their by-laws to allow this collection. Under the law enacted June 1, 2009, this amendment is no longer required.
We recommend to all of our Homeowners that they contact the carrier of their HO-6 Policy (Condominium Unit Owner’s Policy) to confirm that their policy covers their share of the Association’s Master Insurance Policy deductible. Should a leak occur in your unit, a fire begin and spread to another area, or any other unforeseen insurable event occur, your loss would be limited to the deductible you maintain on your HO-6. Anyone who does not carry an H0-6 Policy should be reminded of the need to do so. The annual premium on such a policy is very little compared to the loss of personal belongings, and the cost of temporary living quarters, should your unit be uninhabitable during restoration work. Your HO-6 also covers the value of any improvements or upgrades performed in your unit, an expense not covered by the Association’s Master Policy.
If you are in need of a copy of the Association’s Certificate of Insurance, please contact the Insurance Agency:
Insurance Agency: Maury, Donnelly & Parr
Phone Number: 410-685-4625
Fax Number (if available): 410-685-3071
Homeowners who wish to know more about the law (House Bill 287- Senate Bill 201) can find the entire bill on the Maryland General Assembly web site at http://mlis.state.md.us . Please feel free to contact your Community Association Manager with any questions.
WPM Real Estate Management