§ 11-114. Mandatory insurance coverage
West's Annotated Code of MarylandReal PropertyEffective: October 1, 2023
Effective: October 1, 2023
MD Code, Real Property, § 11-114
§ 11-114. Mandatory insurance coverage
(a) Commencing not later than the time of the first conveyance of a unit to a person other than the developer, the council of unit owners shall maintain, to the extent reasonably available:
(2) Comprehensive general liability insurance, including medical payments insurance, in an amount determined by the council of unit owners, but not less than any amount specified in the declaration or bylaws, covering occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.
(b) The council of unit owners shall give notice to all unit owners of the termination of any insurance policy within 10 days of termination. The declaration or bylaws may require the council of unit owners to carry any other insurance, and the council of unit owners in any event may carry any other insurance it deems appropriate to protect the council of unit owners or the unit owners.
(c) Insurance policies carried pursuant to subsection (a) of this section shall provide that:
(1) Subject to the applicable coverage specified under subsection (a)(1) of this section, each unit owner is an insured person under the policy with respect to liability arising out of the unit owner's ownership of an undivided interest in the common elements or membership in the council of unit owners for property and casualty losses to the common elements and the units, exclusive of improvements and betterments installed in the units by unit owners other than the developer;
(d)(1) Subject to the applicable coverage specified under subsection (a)(1) of this section, any loss covered by the property policy shall be adjusted with the council of unit owners, but the insurance proceeds for that loss shall be payable to any insurance trustee designated for that purpose, or otherwise to the council of unit owners, and not to any mortgagee.
(3)(i) Subject to the provisions of subsection (g) of this section, the proceeds shall be disbursed first for the repair or restoration of the damaged common elements and, for condominiums with attached or multifamily units that must maintain a property insurance policy on the units, the damaged units.
(e)(1) An insurance policy issued to the council of unit owners does not prevent a unit owner from obtaining insurance for his own benefit.
(f)(1) An insurer that has issued an insurance policy under this section shall issue certificates or memoranda of insurance to the council of unit owners and, upon request, to any unit owner, mortgagee, or beneficiary under a deed of trust.
(g)(1) Subject to the applicable coverage specified under subsection (a)(1) of this section, any portion of the common elements and the units, exclusive of improvements and betterments installed in the units by unit owners other than the developer, damaged or destroyed shall be repaired or replaced promptly by the council of unit owners unless:
(4)(i) If the unit owners vote not to rebuild any unit, that unit's entire common element interest, votes in the council of unit owners, and common expense liability are automatically reallocated upon the vote as if the unit had been condemned under § 11-112 of this title, and the council of unit owners promptly shall prepare, execute, and record an amendment to the declaration reflecting the reallocations.
(h) The council of unit owners shall maintain and make available for inspection a copy of all insurance policies maintained by the council of unit owners.
Credits
Added by Acts 1981, c. 246, § 1, eff. July 1, 1981. Amended by Acts 1982, c. 836, § 3; Acts 1984, c. 525; Acts 1986, c. 360; Acts 1989, c. 5, § 1; Acts 2001, c. 694, § 1, eff. Oct. 1, 2001; Acts 2008, c. 513, § 1, eff. Oct. 1, 2008; Acts 2009, c. 522, § 1, eff. June 1, 2009; Acts 2009, c. 523, § 1, eff. June 1, 2009; Acts 2010, c. 72, § 1, eff. April 13, 2010; Acts 2010, c. 742, § 1, eff. Oct. 1, 2010; Acts 2020, c. 56, § 1, eff. Oct. 1, 2020; Acts 2020, c. 57, § 1, eff. Oct. 1, 2020; Acts 2023, c. 186, § 1, eff. Oct. 1, 2023.
MD Code, Real Property, § 11-114, MD REAL PROP § 11-114
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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