Maryland Condominium Buyers Beware of This Change

Hmmm, this is interesting. I've not heard anything of this in seacoast NH area.

Patricia Aulson/portsmouth nh real estate

Margaret--good points to know as I am sure that the other states like PA will follow shortly.

Margaret!  What a great post, and so right up my alley, considering about 90% of my listings and sales have been condos. I can't speak for all parts of the country, but can tell you how it works here.

Most of our condo buildings now require the owner to submit proof on an annual basis of their homeowners insurance. Failure to do so by a certain date, results in fines that are added to your mnthly HOA dues you already pay. Some buildings, if this requirement is not met, can "turn off" your access to common elements (parking, pool, gym, clubhouse) until you bring your HOA account up-to-date, including paying the fines.

I also believe (but stand to be corrected) that you can get an additional rider on your policy to cover the deductible on the Master Policy of the Association.

It's also VERY, VERY important that you make sure any contractors you hire have insurance as well. Last year a contractor working in our building ruptured a water pipe on the 12th floor that flooded numerous homes all the way down to the 7th floor! The homeowner could of been liable for this damage (or his insurance company) had the contractor not had the proper insurance.

Another point that is very important for condo owners to understand if you live in a building that DOES NOT require insurance. (That's a scary thing in and of itself.) If a building were to burn down, for example, the HOA insurance will pay to rebuild the common areas of the building, up to your front door. From the inside, you (or your insurance company) would be responsible for all your personal belongings, as well as the interior of your condo (i.e. appliances, cabinets, counters, electrical wiring, toilet, shower, tub, doors, carpet, etc.) Pretty costly if you don't have insurance.

The same goes for renters. Any clients I work with on rental property, we require the tenants to have renter's insurance to cover their own personal items in case of some type of accident.

Insurance. An necessary evil!

Margaret, it is great that you are conscientious enough to keep up with important changes. So many times changes like this won't come up until closing, or after closing when it is too late.

Good information Margaret. I am surprised there is nothing else online about this kind of change.

Margaret:  Thank you for bringing this important information to the front. .very usable for me since I'm also in Maryland

I am trying to sale my condo in Arlington VA on Lee Highway/Spout Run Parkway.  I am going to check this out first thing Monday to see if Virginia has changed. thanks for the heads up.

Great advice!  Condo insurance is relatively inexpensive (at least in my area).  I had water damage to my lower unit (a rental) from a unit 2 flights above mine.  The woman did not have insurance, although at that time it would have cost her $35/month!  So I was left with the tab.  I had insurance, and the renter had renter's insurance. 

Thanks for posting this because it keeps us all on the ball!

Margaret, this is excellent information. Thank you for sharing! I would hope most condo owners would get their own insurance but need to make sure they are fully covered. A great opportunity to touch base with our condo owner clients! Thank you!

Margaret..Oh boy..more problems..I know on new condo mortgages buyers must have policies..thanks for info

helpfulhannah

Margaret,  This is great information and so important.  Thankfully, there are great agents like you to bring this info to their attention!  As mentioned above, many agents have NO clue and the buyers are stuck after closing.  Great job!

Thanks for the great information in this post.  I'm with Thom & Ray...Insurance as a necessary evil!  Don't forget to get as much liability on your policies, too!  We are quite the litigious people!

Margaret--great information that I was NOT aware of!  Thank you so much for bringing it to my attention so that I can do a little NC research!

And, Thom, you should have just written your own post!!  LOL

How well do these new changes get communicated to the public? 

I will make sure I let all my buyers who are looking at condos know this! Thanks, Margaret. Time got away from us....we'll have to plan our lunch in September.

Hi Margaret: This is a major change - wow - thanks for bringing it to my attention!

:)

Excellent post.  This is what being a local expert is all about!