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Connie Phillips Insurance Blog
Maryland 51% HO-6 Condo Association Vote
Effective October 1, 2011, House Bill 679 modifies Sections 11-104 and 11-114.2 of the Maryland Condominium Act allowing condominium associations to amend its bylaws and require all unit owners to maintain individual HO-6 insurance policies. This new legislation only requires fifty-one percent (51%) of the affirming vote of unit owners to amend the bylaws even if a higher approval percentage is set forth within the current association's bylaws.
Reading from the 2009 Maryland Condominium Act, Annotated Code of Maryland Real Property Article, Title 11 page 2(r); the definition of a unit owner is as follows: "Unit Owner" means the person, or combination of persons, who hold legal title to a unit. A mortgagee or a trustee designated under a deed of trust, as such, may not be deemed a unit owner.
It is CPI's opinion that a vote to amend the bylaws to include the individual unit owners to carry H0-6 insurance does not necessarily have to include the mortgagee or lien holder unless your bylaws or declarations specifically say they need to be included. Your bylaws may say the mortgagee needs to be notified of any changes but not included in the vote for a change to the bylaws.
You can take at look at the detailed referenced materials as follows:
Maryland Legislative Session.pdf
Maryland Legislative Update.pdf
As a condo association manager you understand that the failure of unit owners to obtain individual insurance can sometimes be devastating to the association's master policy; leaving it as the only resource of insurance funds to recover from casualty losses. In the past, this has hurt both the association and unit owners as a whole.
At Connie Phillips Insurance (CPI) our goal is to keep our current and future condo association clients informed and educated on the issues that concern them the most. Please feel free to contact us with any questions or concerns that we can research for you. Let CPI be your condo insurance expert! Call us today at 888-439-0479.
Disclaimer: The material provided above is for information purposes only and the opinions of CPI do not constitute the laws of your state. If you are not a client of CPI and have any legal questions regarding how this information affects your association or its bylaws, please contact professional legal counsel. If you are a CPI client and need help interpreting how the above information affects your association or the state you are located in, please contact CPI account representative at 888-439-0479 or at www.insurance-financial.net
