4610

LAWS OF MARYLAND

Ch. 836

11-114.

(a)  Commencing not later than the time of the first
conveyance of a unit to a person other than [a declarant]
THE DEVELOPER, the council of unit owners shall maintain, to
the extent reasonably available:

(1)  Property insurance on the common elements
and units, exclusive of improvements and betterments
installed in units by unit owners, insuring against [all]
THOSE risks of direct physical loss commonly insured against
[or, in the case of a conversion condominium, against fire
and extended coverage perils], IN AMOUNTS DETERMINED BY THE
COUNCIL OF UNIT OWNERS BUT NOT LESS THAN ANY AMOUNTS
SPECIFIED IN THE DECLARATION OR BYLAWS [The total amount of
insurance after application of any deductibles may not be
less than 80 percent of the actual cash value of the insured
property, exclusive of land, excavations, foundations, and
other items normally excluded from property policies]; and

(2)  Comprehensive general liability insurance,
including medical payments insurance, in an amount
determined by the [board of directors] COUNCIL OF UNIT
OWNERS, but not less than any amount specified in the
declaration OR BYLAWS, covering [all] 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.

(b)  [If the insurance described in subsection (a) is
not maintained, the council of unit owners promptly shall
cause notice of that fact to be hand delivered or sent
prepaid by United States mail to all unit owners.] THE
COUNCIL OF UNIT OWNERS SHALL GIVE NOTICE TO ALL UNIT OWNERS
OF THE TERMINATION OF ANY INSURANCE POLICY WITHIN 10 DAYS OF
TERMINATION. The declaration OR BYLAWS may require the
council of unit owners to carry any other insurance, and the
council of unit owners in any event may carry any other
insurance it deems appropriate to protect the council of
unit owners or the unit owners.

(g) (4) If the unit owners vote not to rebuild any
unit, that unit's entire common element interest, votes in
the council of unit owners, and common expense liability are
automatically reallocated upon the vote as if the unit had
been condemned under [§ 11-115] § 11-112, and the council of
unit owners promptly shall prepare, execute, and record an
amendment to the declaration reflecting the reallocations.
Notwithstanding the provisions of this subsection, § 11-123
governs the distribution of insurance proceeds if the
condominium is terminated.

(H) THE COUNCIL OF UNIT OWNERS SHALL MAINTAIN AND MAKE
AVAILABLE FOR INSPECTION A COPY OF ALL INSURANCE POLICIES
MAINTAINED BY THE COUNCIL OF UNIT OWNERS.