The Maryland Condominium Act has been amended to increase from $5,000 to $10,000 the amount which a unit owner may be required to pay where the cause of fire, water or other casualty damage to units or the common elements originates in that owner’s condominium unit, beginning October 1, 2020.
In recent years, it is has become common that the insurance deductible amount for property damage claims is at least $10,000. Some condo associations are not able to purchase insurance with a lower deductible due to its claims history. Others choose to have a deductible of $10,000 or more to obtain lower insurance premium costs.
For condos which have a deductible of at least $10,000, an owner will be responsible for the first $10,000 of repair costs to the owner’s units, other units and the common elements if the cause of damage originates in the owner’s water or sewer pipes, kitchen or other parts of the unit. If the insurance deductible is less than $10,000, a unit owner will be responsible for the lower deductible amount. The condominium association will be responsible for the repair cost in excess of the deductible amount.Continue reading