SAMPLE LETTER TO CONDOMINIUM UNIT OWNERS

(Agency Letterhead) 

May 2008

Dear Valued Insured:

We wanted to make you aware of a recent change in Maryland law that may cause the limits that you requested our agency attain on your behalf to be inadequate.  The Maryland Court of Appeals, on April 15, 2008, upheld the lower Court’s decisions, holding that the Maryland Condominium Act does not require a condominium association to repair or replace property of a unit-owners condominium after a loss.* This decision could change the manner that your Condominium Association provides coverage for each individual unit, leaving the potential for you to be underinsured.

Due to this decision, it is imperative that you contact your Condominium Association to determine:

• The manner in which their insurance policy provides coverage for individual units, whether it be ‘single entity’ or ‘bare walls’ or ‘all inclusive’ coverage.
• Insurance Requirements that you as the unit-owner must obtain to be compliant with Condominium Association By-Laws

It is also important that you request the association to provide you with this same information at the renewal of their Master Policy in case changes in their coverage may affect you.

When you receive your Condominium Association response, please contact our office.  At your request, it may be necessary to provide additional coverage not needed in the past and/or increase current limits available under your policy based on the new court interpretation.

If you have any questions, do not hesitate to contact us.

Sincerely,

(Agent’s Signature)

*Note:  Court Cases:  Dianne Anderson vs. Council of Unit Owners of the Gables on Tuckerman Condominium (Circuit Court of Montgomery County #271904) and Erie Insurance Exchange vs. The Council of Unit Owners of Bridgeport Condominium (Circuit Court for Prince George’s County #03724).