WeVote
Log In

Bill

Bill

SB 332

Condominiums - Property Insurance Deductibles - Unit Owner Responsibility

2026 Regular Session Introduced by Ben Kramer

SB 332 shifts condo insurance deductible responsibility from associations to individual unit owners, reducing collective fees but increasing personal financial exposure after property damage.

Hearing 2/03 at 2:00 p.m.
0
WeVote Research Nonpartisan
Bill Summary · SB 332

Legislative bill overview

SB 332 would shift responsibility for property insurance deductibles in condominiums from condominium associations to individual unit owners. Currently, when a condo building sustains damage, the association's master insurance policy covers repairs with a deductible that is typically paid from association funds (affecting all owners equally through fees). This bill would require unit owners to pay deductibles for damage to their individual units.

Why is this important

This change has significant financial implications for condo owners and associations. It could reduce overall condo fees by shifting insurance costs to individual unit owners, but it also creates unpredictable out-of-pocket expenses for owners when damage occurs. This is particularly impactful in Maryland given the state's vulnerability to hurricanes, severe storms, and water damage, which can trigger substantial insurance deductibles.

Potential points of contention

  • Financial burden on vulnerable owners: Individual owners may lack funds to pay large deductibles immediately after disaster, especially renters or those on fixed incomes who cannot absorb unexpected costs
  • Equity and fairness concerns: Unit owners in safer locations or with lower-risk units would effectively subsidize owners in higher-risk areas, potentially creating disputes over fair cost distribution
  • Association governance complications: The bill could create conflicts over which owners pay deductibles, how assessments are calculated for shared structural damage, and enforcement mechanisms if owners cannot or will not pay

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.