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Maryland House Bill 98: Understanding Condominium Declaration and Mandatory Insurance Coverage

Maryland House Bill 98, also known as the Condominium Declaration and Mandatory Insurance Coverage Act, has brought significant changes to condominium insurance requirements in the state. This legislation aims to clarify the obligations of condominium associations and unit owners regarding insurance coverage. In this blog post, we’ll explore the key aspects of House Bill 98 and what it means for condominium owners and associations in Maryland.

What is Maryland House Bill 98?
1. Mandatory Insurance for Condominium Associations:
House Bill 98 establishes a mandatory insurance requirement for condominium associations. These associations are now required to maintain insurance coverage for the common elements of the condominium property. Common elements typically include shared spaces like hallways, elevators, and recreational areas.

2. Unit Owner Responsibility:
Under this bill, unit owners are also affected. Unit owners are now responsible for obtaining insurance coverage for their individual units and any improvements or alterations made to their units. This ensures that each unit owner has protection for their personal property and any modifications they’ve made to their space.

3. Clarification of Coverage Responsibilities:
House Bill 98 seeks to provide clarity regarding which party (association or unit owner) is responsible for what aspects of insurance coverage. It helps eliminate ambiguity and potential disputes by outlining these responsibilities.

4. Liability Coverage:
In addition to property coverage, the bill also emphasizes the need for liability coverage. Condominium associations must obtain liability insurance to protect against potential lawsuits related to accidents or injuries that occur in common areas.

Implications for Condominium Owners and Associations:
1. Individual Unit Owners:
If you own a condominium unit in Maryland, it’s essential to review your insurance policy. You are now responsible for ensuring your unit and any improvements are adequately covered. This protects your personal property and investments.

2. Condominium Associations:
Condominium associations must now secure insurance coverage for common elements and liability. Compliance with this requirement is crucial to protect the shared spaces and mitigate potential legal liabilities.

3. Clarity and Conflict Resolution:
The bill’s clarification of insurance responsibilities can lead to smoother conflict resolution and reduce disputes between unit owners and associations regarding coverage issues.

4. Risk Mitigation:
Mandatory insurance coverage for common elements and liability can help mitigate financial risks for both unit owners and associations in the event of accidents, damage, or other unforeseen events.

Maryland House Bill 98, the Condominium Declaration and Mandatory Insurance Coverage Act, brings significant changes to the insurance landscape for condominium owners and associations in the state. It clarifies insurance responsibilities, mandates coverage for common elements and liability, and aims to provide greater protection and clarity for all parties involved.

As a condominium owner or part of a condominium association in Maryland, it’s crucial to review your insurance policies and ensure compliance with the new requirements outlined in House Bill 98. Consult with Klinger Insurance Group and legal counsel if needed to ensure you have the appropriate coverage in place. Stay informed about any updates or changes related to this legislation to remain compliant and adequately protected.

Secure your condominium’s future with confidence under Maryland House Bill 98. Call Today at 301-428-4935 or visit our website at and get a quote. Protect your investment, know your coverage, and make informed decisions today.