Maine HOA Insurance Requirements

Maine imposes a statutory association insurance mandate on condominiums through 33 M.R.S. § 1603-113 of the Maine Condominium Act, but non-condominium planned communities carry no comprehensive statutory insurance mandate and rely on the recorded declaration.

Section 1: Overview — How HOA insurance is regulated in Maine

Maine splits association insurance regulation along community type. Condominiums carry a statutory association insurance mandate under the Maine Condominium Act, while non-condominium planned communities have no comprehensive statutory insurance mandate and rely on the recorded declaration.¹ The condominium mandate sits in 33 M.R.S. § 1603-113, which requires the association to maintain property insurance and commercial general liability insurance to the extent reasonably available.¹⁴ Non-condominium planned communities aren't governed by any dedicated common-interest statute; their insurance obligations are set by the recorded covenants, conditions and restrictions (CC&Rs), with corporate-formality scaffolding supplied by the Maine Nonprofit Corporation Act, 13-B M.R.S. § 101 et seq., where the association is incorporated.¹⁵ The condominium insurance section descends from the 1980 Uniform Condominium Act, not the 1982 Uniform Common Interest Ownership Act (UCIOA), and its mandate is conditioned on coverage being reasonably available, with a duty to notify owners if required coverage becomes unavailable.² Fidelity (crime) and directors-and-officers (D&O) coverages aren't statutory mandates in Maine; they're typically driven by the declaration or by secondary-market lender requirements.⁸ Nationally, Maine is a 1980-UCA condominium-mandate state whose planned-community insurance resembles CC&R-primary states, operating within a coastal-and-winter market where the Maine Bureau of Insurance reports that some condominium associations and other niche commercial lines have found fewer options and higher premiums.¹⁶ The sections that follow set out the statutory framework, coverage allocation, and recent legislative and judicial activity.

Section 2: The statutory insurance framework

2A. The condominium insurance mandate

The condominium insurance mandate appears at 33 M.R.S. § 1603-113. Commencing not later than the first conveyance of a unit to a person other than a declarant, the association must maintain, to the extent reasonably available, property insurance on the common elements and commercial general liability insurance.⁴ The section descends from Section 3-113 of the 1980 Uniform Condominium Act. That lineage is distinct from Section 3-113 of the 1982 UCIOA, adopted in its 1982 form by Alaska, Colorado, Minnesota, Nevada and West Virginia (and in its 2008 form by Connecticut, Delaware, Vermont and Washington); Maine did not adopt UCIOA for condominiums.¹⁷ The distinction matters because UCIOA-specific features, including the 2008 UCIOA authority to charge a deductible to an owner who is the source of a loss, aren't part of Maine law.

Two coverages are required. Property insurance must cover the common elements against all risks of direct physical loss commonly insured against (or, for a conversion condominium, fire and extended coverage perils), and where buildings contain units with horizontal boundaries between them the property coverage must also include the units, though it need not include improvements and betterments installed by unit owners.⁶ Liability insurance, including medical-payments coverage, must be carried in an amount determined by the executive board but not less than any amount specified in the declaration, covering occurrences arising from the use, ownership or maintenance of the common elements.⁷

The mandate is qualified. Both required coverages apply only "to the extent reasonably available," and if the insurance isn't reasonably available the association must promptly deliver notice of that fact to all unit owners by hand delivery or United States mail.¹⁸ On valuation, the statute doesn't use a full replacement-cost standard. It requires total property insurance, after application of any deductibles, of not less than 80% of the actual cash value of the insured property at purchase and at each renewal, exclusive of land, excavations, foundations and other items normally excluded from property policies.⁵ Insurance proceeds are payable to an insurance trustee (or otherwise to the association), held in trust for unit owners and lien holders, and disbursed first for repair or restoration.¹¹ Damaged or destroyed property for which insurance is required must be repaired or replaced promptly by the association unless the condominium is terminated, repair would be illegal, or 80% of unit owners vote not to rebuild; the cost of repair or replacement in excess of insurance proceeds and reserves is a common expense.¹⁰ The section doesn't authorize the association to charge a master-policy deductible back to an owner who caused a loss; the Maine text is silent on owner deductible allocation, and no such owner-charge language exists in § 1603-113.

2B. Planned communities and the absence of a statutory mandate

Non-condominium planned communities in Maine have no dedicated statute and therefore no statutory insurance mandate. Insurance for these communities is set entirely by the recorded declaration and CC&Rs.³ The order of precedence differs by community type. For condominiums, the Maine Condominium Act governs to the extent it speaks to insurance, followed by the declaration, the bylaws and the rules. For planned communities, the declaration is primary, with no overriding insurance statute to supply a floor. Where a planned-community association is incorporated as a Maine nonprofit corporation, the Maine Nonprofit Corporation Act supplies corporate-governance rules, including director conduct and indemnification, but it imposes no insurance mandate.¹⁹ The practical implication is direct: for a Maine planned community, coverage analysis begins and ends with the recorded declaration and any applicable lender requirements.

2C. The declaration, corporate law, and the federal and market overlay

For condominiums, the order of precedence runs from the Maine Condominium Act to the declaration, bylaws and rules. Section 1603-113 provisions may be varied or waived only for condominiums all of whose units are restricted to nonresidential use; for residential condominiums the statutory floor can't be waived, though the declaration may require additional insurance and the association may carry any other insurance it deems appropriate.¹² Fidelity and D&O coverages aren't statutory mandates. The Maine Condominium Act lists maintaining D&O liability insurance among association powers, framed as a power rather than a command, and the Maine Nonprofit Corporation Act permits — but doesn't require — indemnification and the purchase of insurance for officers and directors.⁹

A separate federal and secondary-market overlay applies regardless of Maine law. Fannie Mae, Freddie Mac, FHA condominium project approval, and the National Flood Insurance Program (NFIP) impose insurance conditions on associations whose units are financed conventionally or through FHA, including planned communities that have no statutory floor. These lender and federal requirements frequently exceed any state-law floor and, in practice, drive fidelity, flood and property coverage decisions.¹³ Maine market conditions add further pressure, distinct from any statutory mandate: coastal associations along the Atlantic carry hurricane, nor'easter and coastal windstorm exposure; severe winter perils dominate claims, with the Maine Bureau of Insurance reporting that poor-condition roofs — an ice-dam and snow-load exposure — account for more than 75% of home insurance non-renewals in the state; and coastal flood exposure brings the NFIP into play for units in Special Flood Hazard Areas, though only about 1.3% of Maine homes and buildings carry NFIP coverage, well below the national average.¹⁶

Section 3: Coverage allocation and compliance obligations

A. Association coverage obligations

For condominiums, the master policy must carry property insurance on the common elements (and on units where buildings have horizontal boundaries) and commercial general liability insurance, both to the extent reasonably available, under 33 M.R.S. § 1603-113 — applies to condominiums; mandatory for residential condominiums and may be varied only for all-nonresidential condominiums.²⁰ For planned communities, the association must carry whatever the declaration requires; this obligation is contractual (via CC&Rs), not statutory, and there's no statutory floor — applies to planned communities.²¹

B. Coverage allocation between association and owners

The condominium master policy covers common elements and, where horizontal boundaries exist, the units, but it need not cover improvements and betterments installed by unit owners; owners remain responsible for their own improvements, interior items outside the master policy's scope, and personal property — applies to condominiums; may be varied only for all-nonresidential condominiums.²² An association policy doesn't prevent a unit owner from obtaining insurance for the owner's own benefit, and where both cover the same risk the association's policy is primary; an individual unit-owner policy — commonly an HO-6 — typically fills the gap for interior finishes, betterments and personal property, and can add loss-assessment coverage — applies to condominiums.²³ For planned communities, allocation between association and owner is governed by the declaration — contractual, not statutory — applies to planned communities.²⁴

C. Deductibles, proceeds, and repair-or-replace

Section 1603-113 is silent on charging a master-policy deductible to a culpable owner; the cost of repair or replacement in excess of insurance proceeds and reserves is a common expense, so a deductible not funded by reserves is effectively borne collectively unless the declaration provides otherwise — applies to condominiums; deductible reserves are a common budget item.²⁵ Insurance proceeds are held in trust and disbursed first for repair or restoration, with owners and lien holders entitled to payment only from any surplus after complete repair or upon termination — applies to condominiums.²⁶ The association must repair or replace damaged property promptly subject to the statutory exceptions, and owners face common-expense (loss-assessment) exposure for amounts exceeding proceeds and reserves — applies to condominiums.²⁷ For planned communities, deductible allocation and rebuild obligations are contractual, set by the declaration — applies to planned communities.²⁸

D. Fidelity, D&O, and disclosure

Fidelity and D&O coverages are declaration- or lender-driven, not statutory; the Maine Condominium Act treats D&O as an association power, and the Maine Nonprofit Corporation Act permits indemnification and insurance — applies to condominiums via § 1603-102, and to incorporated planned communities via 13-B M.R.S. § 714.²⁹ On disclosure, the condominium resale certificate must include a statement describing any insurance coverage provided for the benefit of unit owners, giving purchasers a statutory window into association coverage — applies to condominiums under 33 M.R.S. § 1604-108; mandatory for covered resales.³⁰ The insurer must issue certificates or memoranda of insurance to the association and, on request, to any unit owner or mortgagee, and may not cancel or refuse to renew until 20 days after mailing notice to the association, each unit owner and each mortgagee holding a certificate — applies to condominiums.³¹ Planned communities have no comparable statutory insurance-disclosure requirement; disclosure obligations, if any, are contractual — applies to planned communities.

Section 4: Recent legislative and judicial activity

A. Recent bills

No bill in the 132nd Legislature amended 33 M.R.S. § 1603-113 or otherwise changed condominium association insurance obligations. The most material enacted insurance-touching measure was a general property-insurance and resilience law, not a Condominium Act amendment.

B. Recent appellate rulings

No Maine Supreme Judicial Court opinion, sitting as the Law Court, in the past 36 months squarely addresses — or even cites — association insurance obligations, coverage allocation, deductible disputes, or insurance-proceeds/rebuild questions under 33 M.R.S. § 1603-113. Recent condominium litigation before the Law Court has centered on assessment and judgment-lien enforcement, boundary and adverse-possession disputes, and declarant development rights rather than insurance. The following decision is included as the most recent significant condominium ruling and to illustrate the current litigation focus, not because it construes the insurance section.

C. Active legislative debates

Coastal property-insurance availability and affordability remained active themes in the 132nd Legislature; LD 1674, the "Insure Our Communities Act," which sought to condition insurer conduct on fossil-fuel underwriting and investment, received an "Ought Not to Pass" report on May 28, 2025 and didn't advance.³⁴ The most material recent pressure on Maine association insurance is market-driven — coastal windstorm and winter-peril cost and availability — rather than statutory.

Section 5: National positioning and related coverage

Maine sits in the first of three broad categories of association insurance regulation. The first category comprises condominium-statute states on the UCA or UCIOA model with a statutory condominium insurance mandate keyed to Section 3-113; Maine is on the 1980 UCA version.³⁵ The second category comprises comprehensive non-uniform prescriptive states, notably Florida (Chapter 718) and California (Davis-Stirling). The third comprises CC&R-primary states such as Alabama and Arkansas. On the planned-community insurance question Maine resembles the CC&R-primary states, because it has no comprehensive planned-community statute, and Maine has no intermediate appellate court, so civil insurance disputes move from the Superior Court directly to the Law Court. For a multi-state operator entering Maine, condominium obligations track the 1980 UCA Section 3-113 pattern, planned-community coverage is declaration-driven, and coastal-and-winter availability is a Maine-specific market factor. Maine hasn't moved toward a comprehensive planned-community statute, and no such measure was advancing as of this update.

HOA Weekly updates its Maine Insurance Requirements coverage quarterly as the Legislature and the Maine Supreme Judicial Court act and as the property-insurance market shifts. Federal frameworks — Fannie Mae, Freddie Mac, FHA, NFIP, and FHA fair-housing accommodation rules — also apply to Maine associations regardless of the state framework, with fuller treatment to follow once that coverage is built out.

1. 33 M.R.S. § 1603-113 (Insurance), Maine Revised Statutes ↩
2. Uniform Condominium Act (1980), Section 3-113 ↩
3. Maine Condominium Act, Title 33 Chapter 31 (applies to condominiums; no comprehensive planned-community act) ↩
4. 33 M.R.S. § 1603-113(a) ↩
5. 33 M.R.S. § 1603-113(a)(1) ↩
6. 33 M.R.S. § 1603-113(a)(1), (b) ↩
7. 33 M.R.S. § 1603-113(a)(2) ↩
8. 33 M.R.S. § 1603-113 (no fidelity or D&O mandate in section text) ↩
9. 33 M.R.S. § 1603-102(13); 13-B M.R.S. § 714 ↩
10. 33 M.R.S. § 1603-113(h) ↩
11. 33 M.R.S. § 1603-113(e) ↩
12. 33 M.R.S. § 1603-113(c), (i) ↩
13. Fannie Mae Selling Guide B7-4-02, Fidelity/Crime Insurance Requirements for Project Developments ↩
14. 33 M.R.S. § 1603-113(a) ↩
15. Maine Nonprofit Corporation Act, 13-B M.R.S. § 101 et seq. ↩
16. Maine Bureau of Insurance, The Availability of Insurance in the Maine Property & Casualty Market (2025) ↩
17. Community Associations Institute, Uniform Common Interest Ownership Act (states adopting 1982 and 2008 UCIOA) ↩
18. 33 M.R.S. § 1603-113(a), (c) ↩
19. 13-B M.R.S. § 714 (Indemnification of officers, directors, employees and agents; insurance) ↩
20. 33 M.R.S. § 1603-113(a), (i) ↩
21. Maine Condominium Act, Title 33 Chapter 31 (no statutory floor for planned communities) ↩
22. 33 M.R.S. § 1603-113(b) ↩
23. 33 M.R.S. § 1603-113(d)(4), (f) ↩
24. Maine Condominium Act, Title 33 Chapter 31 (planned-community allocation is contractual) ↩
25. 33 M.R.S. § 1603-113(h) ↩
26. 33 M.R.S. § 1603-113(e) ↩
27. 33 M.R.S. § 1603-113(h) ↩
28. Maine Condominium Act, Title 33 Chapter 31 (planned communities declaration-governed) ↩
29. 33 M.R.S. § 1603-102(13); 13-B M.R.S. § 714 ↩
30. 33 M.R.S. § 1604-108(a)(9) (Resales of units; insurance disclosure) ↩
31. 33 M.R.S. § 1603-113(g) ↩
32. Office of Governor Janet T. Mills, Governor Mills Signs LD 1 (2025) ↩
33. Maples v. Compass Harbor Village Condominium Ass'n, 2025 ME 19 ↩
34. LD 1674, HP 1109, Text and Status, 132nd Legislature (Ought Not to Pass, May 28, 2025) ↩
35. Community Associations Institute, Uniform Common Interest Ownership Act ↩