DC bill would raise the condo deductible pass-through from $5,000 to $25,000
DC bill would raise the condo deductible pass-through from $5,000 to $25,000
2026-09-09 · District of Columbia · Legislation · Pending — not yet law
A bill pending before the Council of the District of Columbia would raise the amount a condominium unit owner must absorb of the association's property insurance deductible from $5,000 to $25,000 where damage originates in their unit — and would, for the first time, impose statutory minimum insurance requirements on every DC unit owner. Bill 26-495, the Condominium Insurance Amendment Act of 2025, is not law and has not been voted on.1
It was introduced November 20, 2025 by Councilmember Anita Bonds, with no co-introducers, and referred to the Committee on Housing on December 2, 2025. A public hearing was held March 30, 2026. There has been no markup, no committee report and no first reading since.
What it would do
The bill rewrites subsections (d-1) and (j) of D.C. Code § 42-1903.10, the Condominium Act's insurance section.
Minimum unit-owner coverages. Every owner would have to carry dwelling and building property coverage of not less than $25,000 (or enough to repair or replace improvements and betterments the instruments make the owner's responsibility); personal property coverage adequate to replace contents; personal liability of not less than $500,000; loss-of-use coverage adequate for at least 12 months of alternative housing; loss assessment coverage of not less than $25,000; and coverage for the association's property insurance deductible. An executive board could raise those minimums at a properly noticed meeting.
Waiver of subrogation. Every unit-owner policy would have to waive subrogation in favour of the association.
Annual proof, and force-placement. Owners would furnish proof of insurance annually, or more often on request. An owner who failed to do so could have the association buy a policy on their behalf, take the proceeds toward the deductible, and charge the premium back as an assessment.
The deductible cap. Where damage originates in a unit, that owner would be responsible for the association's deductible or uncovered loss up to $25,000, in the aggregate or per unit, assessed against the unit — unless the governing documents allow a higher amount or impose the entire loss. Where damage originates in the common elements or outside the building, the deductible remains a common expense. Where the master policy carries a per-unit deductible, each damaged unit's owner absorbs that unit's deductible up to $25,000.
The case for it, and the case against
Councilmember Bonds's transmittal letter states the problem plainly: insurance costs have risen, associations pass them through as special assessments or fee increases, and current law offers no mechanism to address the increase in deductibles. Master-policy deductibles across the region have climbed well past $5,000, so the statutory cap now leaves the difference with the association — which means with every owner, including the ones with nothing to do with the loss.
The Community Associations Institute's DC Legislative Action Committee supports the bill.
The opposition, led publicly by District real estate practitioners, makes two arguments worth taking seriously. The first is that “originates” is undefined and is precisely the contested question in water-intrusion claims — a supply line inside a wall, a failed fixture, a stack that serves several units. The second is that a mandatory waiver of subrogation removes a recovery route from the owner who did nothing wrong.
Where a board stands while it sits
Nothing in this bill is in force, and it is no basis for a change in practice. But three preparatory steps cost little.
Read your own documents first. The bill's cap yields to governing documents that allow a higher amount or impose the entire loss. Many DC declarations already allocate deductible responsibility, and where they do, the statutory number may never be the operative one. A board that does not know what its declaration says about deductibles does not know what this bill would change for it.
Know your master-policy deductible. The gap between the policy deductible and the $5,000 statutory cap is the exposure the association is carrying today. That number belongs in the budget discussion, whether or not the law changes.
Check whether owners actually carry HO-6 coverage. The bill would make an annual certificate mandatory. An association that starts collecting them voluntarily learns the answer to a question it will need either way, and finds out how many owners are uninsured before a loss does.
The timing, which cuts against the bill
Brokers covering the DC and Northern Virginia market report that condominium master-policy pricing has begun to ease after three to four years of double-digit renewals, with clean, well-maintained buildings seeing low single-digit increases — the exception being umbrella and excess layers. If that holds, the bill would shift risk onto unit owners just as the pressure that motivated it recedes. That is broker commentary rather than a measured finding, and it is offered here as context, not as a forecast.
What to watch next
The calendar. Under the Council's rules, a measure not finally adopted before the end of Council Period 26 lapses without prejudice to reintroduction. Council Period 26 ends at noon on January 2, 2027. The bill has been silent since the March 30, 2026 hearing, and it needs a committee markup, a report and two readings to survive.
Watch also for a revised version. Bills that stall after a contested hearing usually reappear with the contested word — here, “originates” — defined.
Related District of Columbia HOA Topics
- Bill 26-495, the Condominium Insurance Amendment Act of 2025 — Council of the District of Columbia legislative record ↩
- Bill 26-495 as introduced — text and transmittal letter (PDF) ↩
- D.C. Code § 42-1903.10, Insurance — the provision the bill would amend, including the current $5,000 deductible cap ↩
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