Maryland passed a law in 2026 that changes how condo insurance works for most unit owners, and it takes effect on October 1, 2027. Two things change: how much of your association's insurance deductible you can be charged, and what insurance you're required to carry. Here's what the law says and what I'd check now.
The short version
- When damage starts in your unit, you can be charged up to $25,000 of the association's deductible, up from $10,000 today.
- Most Maryland condo owners will be required to carry an HO-6 policy with at least $25,000 of loss assessment coverage and at least $25,000 of dwelling coverage.
- Many condo policies include only a small amount of loss assessment coverage by default, so it's worth checking yours now.
Change 1: You can owe more of the association's deductible
Your condo association carries a master insurance policy on the building, and that policy has a deductible, often a large one. Today, when damage starts in your unit, Maryland law lets the association charge you for that deductible, up to $10,000.
Starting October 1, 2027, you'll be responsible for the least of three amounts:
- the total cost of the repair,
- the association's deductible, or
- $25,000.
If the damage starts in the common areas, or comes from an event outside the units and common areas, the deductible stays a shared expense for all owners. Your association has to tell you in writing each year what the deductible is and what you'd be responsible for.
An example
Say a washing machine hose fails in your unit, and the water damages your unit and the two units below. Repairs come to $40,000, and the association's master policy has a $25,000 deductible. Today, you could be charged up to $10,000. After October 1, 2027, you could be charged $25,000.
Change 2: Condo insurance becomes required
Starting October 1, 2027, most owners in residential condominiums must carry a condo unit owner policy, often called an HO-6, or a similar property policy. It has to include:
- coverage for the association's deductible, or the portion of it, that you're charged,
- loss assessment coverage of at least $25,000, and
- dwelling coverage of at least $25,000, or more if the improvements and upgrades you're responsible for insuring would cost more to repair or replace.
You'll need to give your association proof of coverage every year and whenever it asks. If you don't keep the coverage, the association can buy a policy for you and bill you for the premium. Going without coverage doesn't reduce what you owe toward the deductible.
The requirement applies to residential condominiums. It doesn't apply to detached units in a condominium made up entirely of similar detached units.
Why the policy wording matters
The law calls for two related coverages: one for the association's deductible when it's charged to you, and loss assessment coverage for your share of other assessments after a covered loss. Policies handle these in different ways. Some pay deductible charges through loss assessment coverage, some use a separate endorsement, and some limit how much they'll pay toward a deductible. That's why I read the policy itself, not just the limits on the declarations page.
What to do before October 1, 2027
- Find your association's master policy deductible. Your association has to give it to you in writing each year, and your management company can confirm it.
- Check your loss assessment coverage. It's on your HO-6 declarations page. If it's under $25,000, it needs to go up.
- Confirm how your policy pays a deductible charged to you, and that it would cover the full amount you could owe.
- Check your dwelling coverage. Make sure it's at least $25,000 and covers any upgrades you've made, like new floors, cabinets or a remodeled bathroom.
- Keep your declarations page handy. You'll need to show proof of coverage to your association every year.
The good news: raising loss assessment coverage usually costs little compared with what it protects. See condo insurance for how I set up HO-6 policies.
Frequently asked questions
When does Maryland's new condo insurance law take effect?
October 1, 2027. The law is Chapter 717 of the 2026 Laws of Maryland (Senate Bill 747).
How much of the association's deductible can I be charged?
Today, up to $10,000 when the damage starts in your unit. Starting October 1, 2027, you're responsible for the least of the total repair cost, the association's deductible, or $25,000.
Is condo insurance required in Maryland?
Starting October 1, 2027, yes, for most owners in residential condominiums. The policy must include coverage for the association's deductible you're charged, at least $25,000 of loss assessment coverage, and at least $25,000 of dwelling coverage, or more if your improvements and upgrades would cost more to repair. Detached units in a condominium made up entirely of similar detached units are excluded.
What happens if I don't carry the required coverage?
Your association can buy a policy on your behalf and charge you the premium as an assessment. Going without coverage also doesn't reduce what you owe toward the deductible.
Can my association require more coverage than the law does?
No. Under the new law, condo bylaws can't require coverage amounts above these minimums. You can still choose higher limits, and depending on your unit and your assets, you may want to.
Source: Chapter 717 of the 2026 Laws of Maryland (Senate Bill 747), which amends Real Property Article § 11-114 and adds § 11-114.3. This guide is general information, not legal advice. Your policy and your condominium documents control.