Community Association Insurance in Maryland

Maryland at a glance

Condominium statute

Real Property Article, Title 11, Condominium Act

Requires council of unit owners to insure common elements and carry liability coverage.

HOA statute

Real Property Article, Title 11B, Homeowners Association Act

Requires resale disclosure package including insurance and reserve information.

Coastal exposure

Ocean City high-rises and Chesapeake waterfront face hurricane wind and tidal flood risk

NFIP RCBAP and named-storm deductibles are common for coastal buildings.

Primary insurance regulator

Maryland Insurance Administration

Confirm current filing and licensing guidance directly with the administration.

Condominium Act insurance requirements

Maryland's Condominium Act, Real Property Article Title 11, requires the council of unit owners to maintain property insurance covering the condominium's common elements and units to the extent required by the declaration, along with liability insurance for common-element occurrences. The declaration's own allocation of insurance responsibility between the association and individual unit owners still controls many of the practical coverage-gap questions, so reviewing that document is a standard first step in a Maryland condominium submission.

Homeowners Association Act disclosure duties

Maryland's Homeowners Association Act, Title 11B, requires HOAs to provide a resale disclosure package that includes information about the association's insurance coverage and reserve funding, giving prospective buyers and, indirectly, underwriters a documented look at an association's financial condition. HOAs that let this disclosure package go stale often find that lapse surfaces during a lender's review of a pending unit sale.

Fidelity coverage and volunteer board exposure

Both condominium councils and homeowners associations pursuing Fannie Mae, Freddie Mac, FHA, or VA-eligible financing for their unit owners generally need fidelity coverage protecting against embezzlement by board members or a managing agent, sized to reflect the association's assessment income and reserve balances. Maryland's large stock of planned communities in the D.C. and Baltimore suburbs frequently uses third-party management companies, which shifts part of that fidelity exposure to the managing agent's own crime policy — a split worth confirming rather than assuming.

Chesapeake Bay and Atlantic coastal exposure

Maryland's Eastern Shore and Chesapeake Bay waterfront communities face tidal flooding and hurricane wind risk, while Ocean City's high-rise condominiums along the Atlantic carry direct hurricane exposure requiring NFIP RCBAP flood coverage and often a separate named-storm deductible. Inland Maryland associations in the Baltimore-Washington corridor more typically see winter freeze and ice-dam claims rather than coastal wind losses.

Who we write this for in Maryland

Community association FAQs for Maryland