Maryland Condominium Law – Tuckerman – Insurance Agents & Brokers

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Maryland's Condominium Law - Tuckerman

It was standard practice for over 25 years for a condo association to purchase property insurance on its common elements and all units. But this all changed in April 2008 when the Maryland Court of Appeals – in the Tuckerman case – ruled that condo associations were not required to repair or replace the unit if it was damaged.

Prior to this decision, the master policy would pay the association to replace and repair certain damage – both in the common areas as well as within the unit itself, subject to the deductible. After the Tuckerman decision, basically unit owners had to pay to repair their own units.

This did not sit well with many; including independent insurance agents in Maryland. Over the next year, IA&B worked diligently with the Maryland General Assembly for a legislative remedy.

In April 2009, two companion pieces of legislation were passed (HB 287 and SB 201) which basically restored the condo law back to pre-Tuckerman days. The bills were signed in May 2009 and became effective June 1, 2009. For a complete timeline of events, click here.

Note: In 2010, the Maryland legislature enacted other changes affecting condominium and homeowners’ associations, as well as cooperative housing corporations. The law requires a fidelity insurance against fraud, dishonesty or criminal acts by its directors, officers, agents or employees. A bond can be used to satisfy the requirement. Read more

Resources for producers

Talking points for:

Sample letter to unit owners:

Cancellation provision

Effective Oct. 1, 2010, the advance cancellation notice for condo policies is aligned with section 27-603 of Insurance Article (at 45 days). IA&B-backed HB 1514 was enacted during the 2010 session, and provides more consistency and clarity.

Court decisions

“Tuckerman” case – April 2008 original decision by the Maryland Court of Appeals
Appellants’ Motion For Reconsideration – request by Erie et al. to the court to reconsider its opinion

IA&B's advocacy efforts

Letter to the Maryland General Assembly – IA&B advocating for a legislative fix during the 2009 session (June 19, 2008)
2009 Condo Letter to Governor O’Malley – requesting swift action in signing HB 287
2010 Condo Letter to Governor O’Malley – requesting swift action in signing HB 1514

News-related articles

“Court Turns Maryland Condo Insurance Upside Down” – Insurance Journal article from June 3, 2008
“Maryland Court Wrong in Condo Ruling” – Insurance Journal article from June 20, 2008
“Condo Insurance Requirements Not Cookie-Cutter” – Insurance Journal article from June 30, 2008
“Maryland’s condo law – it’s not what it used to be!” – article from September 2008 issue of Primary Agent magazine

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