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Condo owners back higher unit insurance minimums and larger deductible pass‑through cap
Summary
Multiple condominium board members and industry representatives testified in favor of raising the maximum deductible pass‑through from $5,000 to $25,000 and clarifying required HO‑6 coverages to control association premiums and encourage unit‑owner responsibility.
Condominium association leaders told the Committee on Housing they support changes in the Condominium Insurance Amendment Act (B26‑495) to reflect much higher master policy deductibles in today’s insurance market. Jane Rogers, counsel for community associations, said the $5,000 pass‑through cap in current law is outdated, and that increasing the cap aligns statute with current insurance practices.
Molly Peacock, a co‑chair of the DC Legislative Action Committee for CAI, offered an example of a 10‑unit building where a $25,000 deductible claim would currently generate a $2,000 special assessment per owner under the existing $5,000 cap; she said raising the pass‑through would allow associations to better manage premiums and reserves while clarifying required owner HO‑6 coverage.
Industry groups urged a flexible approach that recognizes differences across buildings, and some witnesses asked for protections so the changes don’t create barriers to homeownership. The committee heard no formal objection from consumer advocates at the hearing but recorded questions about impacts on affordability and the mechanics of enforcement; members requested a comparison of neighboring jurisdictions' statutory caps.
