Maryland condo insurance: 2026 costs and coverages

What is Maryland condo insurance?

Maryland condo association insurance protects the building, common elements, association property, and, in many condominiums, the units as originally constructed/finished by the developer.

It is purchased and maintained by the board on behalf of the association, and it is separate from any interior policy that owners buy for their individual units. Master insurance requirements appear in the Maryland Condominium Act and the association’s governing documents. Premiums for this coverage are paid from the association’s operating budget, which is funded through association fees.
 

What Maryland law requires the association to insure

Maryland law says the council must maintain both property insurance and comprehensive general liability insurance, to the extent reasonably available. Under Md. Code, Real Prop. § 11-114(a):

• Property insurance must protect against risks of direct physical loss commonly insured against in amounts determined by the council of unit owners, but not less than any amounts specified in the declaration or bylaws.
   
• Comprehensive general liability insurance, including medical payments insurance, must be secured in an amount determined by the council of unit owners, but not less than any amount specified in the declaration or bylaws, covering occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.

Does condo insurance cover individual units?

Whether the condo association is required to cover individual units depends on whether the community is made up of attached units, detached units, or a mix of the two:

• If the condo is made up entirely of attached units (like a multifamily building), the condo is typically required to cover the common elements and the units. However, this generally excludes owner-installed improvements and betterments.
   
• If the condo is made up entirely of similar detached units (like single-family homes), the condo is typically required to cover the common elements only. Homeowners must carry their own insurance to cover the entirety of their units, unless the council chooses to insure all detached units.
   
• If the condo is a mix of attached units and detached units, the condo is typically required to cover the common elements and the attached/detached units. However, this generally excludes owner-installed improvements and betterments.

Who pays deductibles, the association or owners?

If the damage originates from common elements or an event outside the units/common elements, the deductible is generally paid by the association as a common expense.

If the damage originates from a unit, the owner of that unit is generally responsible for the council’s property insurance deductible up to $10,000, and the association must inform each unit owner annually in writing about (1) the owner’s deductible responsibility and (2) the deductible amount.
 

Costs for boards in 2026

In Maryland, it’s common for condo associations to spend 20% to 35% of the operating budget on master insurance. Typical ballpark premium ranges for condo master policies in Maryland can look like:

• Small buildings (6–12 units): about $8,000–$20,000 per year
   
• Mid-size buildings (20–60 units): about $25,000–$80,000 per year
   
• Large buildings or high-rises: about $90,000–$350,000+ per year

Maryland condo insurance costs can swing widely based on replacement cost values, building age and systems (roof, plumbing, electrical), claim history, deductible levels, and required coverages.
 

Insurance coverage types for Maryland condo boards

Your association’s program is usually a bundle of coverages, often including:

• Property insurance for the building structure and shared areas
   
• General liability coverage for injuries or property damage occurring on common property
   
• Directors and officers liability coverage to support the board when governance decisions result in covered claims
   
• Fidelity or crime coverage to protect association funds
   
• Umbrella liability to increase limits beyond certain base policies
   
• Equipment breakdown coverage for systems such as elevators, boilers, or pumps
   
• Building ordinance and law coverage to address reconstruction costs required by updated codes
   
• Flood or hurricane-related coverage, which may be required in coastal zones or recommended by the broker

The right mix depends on the building, the budget, and the community’s risk profile.
 

Access to policies and proof of coverage

Maryland associations are required to maintain a copy of all insurance policies maintained by the council, and make these copies available for inspection. In practice, that means the insurer must provide certificates or memoranda of insurance to the council and, upon request, to a unit owner, mortgagee, or deed of trust beneficiary.

If a policy is terminated, there is a 10-day window to notify unit owners of this change, so boards should confirm that management and the broker have a clear action plan for notices.
 

Tips for Maryland condo board members

Review coverage with your broker before renewal season

Earlier planning gives you time to correct building data, update replacement cost assumptions, and address underwriting questions before you’re on a deadline.
 

Treat water losses like a “premium driver”

Many communities see repeated water claims become a long-term cost problem. Preventive maintenance, documentation, and fast response protocols can matter at renewal.
 

Document upgrades and capital projects

Capital improvements like roof replacements, updated electrical panels, plumbing upgrades, and modern fire/life safety systems can support underwriting and reduce disputes about building condition.
 

Communicate deductible rules clearly

Maryland’s deductible framework (including the $10,000 cap and the annual notice requirement when damage originates from a unit) is worth turning into a one-page resident explainer with help from your property manager and qualified legal counsel. Learn more about developing effective community communication.
 

About FirstService Residential

As North America’s leading property management company, FirstService Residential serves Maryland communities with local expertise backed by national resources. Our teams support board members with running meetings, recordkeeping, financial management, banking and insurance programs, resident communication, and 24/7 customer care teams. This way, board members can focus on long-term goals instead of day-to-day administration.

With over 25 years of experience across the state, we help HOAs, condo associations, high-rises, and master-planned communities operate smoothly and meet their goals with confidence. To learn how we can support your association, contact our Maryland team today.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.