Unit Owner Deductible Responsibility Increased to $10,000 effective 10/1/2020 – ACTION REQUIRED

Date: July 21, 2020
Subject: Unit Owner Deductible Responsibility Increased to $10,000 effective 10/1/2020 – ACTION REQUIRED

Effective October 1, 2020 a condominium unit owner’s deductible responsibility increases from $5,000 to $10,000 if a casualty loss originates in a unit or from a component that services only that unit.

Per the Maryland Condominium Act (§11-114, 2. (iii) 1.:  

If the cause of any damage to or destruction of any portion of the condominium originates from a unit, the owner of the unit where the cause of the damage or destruction originated is responsible for the council of unit owners’ property insurance deductible not to exceed $10,000.

Action Owners Need to Take By 10/1/2020:

1. Owners need to contact their condominium unit owner (HO-6) policy carrier/agent so that the increased deductible responsibility can be covered under your HO-6 policy. You need to have your coverage increased to $10,000.

1. Review all of your coverages with your agent/carrier to ensure you have proper coverage for any and all improvements and betterments made to your condo (cabinets, flooring, etc.) as the Master Policy only covers original, builder grade product.
2. Verify you have the “Sewer Back Up” endorsement on your HO6 policy.  If you do not, it is recommended that you have it added. This endorsement reimburses you for water damage to the structure of your unit or personal property if it’s discharged or overflows from a sewer or drain.  If the county sewer backs up into your unit the county will NOT pay for damages and neither will your HO6 policy if you do not have this endorsement.
3. Make sure you have the proper coverage for your personal property.  If you have expensive jewelry, cameras, musical instruments, collector items, etc. you should discuss with your agent the benefits of a personal articles floater (PAF) policy for those items.
4. If you rent out your unit, your tenants are required to carry renter’s insurance and as an owner you are required to provide a copy of your tenants current coverage (renewals) to the Association.  You should review your owner policy with your agent to make sure you have the proper policy or endorsements necessary for your unit being a rental dwelling, for example, loss of rents coverage. Also review with your agent what coverage you should require your tenants to carry to properly protect you.