Members on the board of a Homeowners Association have many responsibilities and managing the insurance for the association is one of them.
Did you know that in Florida Homeowners Associations (HOAs) are required to maintain crime insurance or what is known as a fidelity or crime bond?
Fidelity bonds protect your business against employee theft. If an employee is entrusted to handle cash or other valuable assets purchasing a fidelity bond is a good idea and in Florida for Homeowners Associations it may be required. In the case of a Homeowners Association, the “employee” would be a board member or a property management company designated by the board members.
The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time.
As stated in the statute “If annually approved by a majority of the voting interests present at a properly called meeting of the association, an association may waive the requirement of obtaining an insurance policy or fidelity bond for all persons who control or disburse funds of the association”, however you should certainly consider obtaining the coverage.
To read the details on this statute
This coverage can typically get added on to your existing policy or quoted as a bond.
If you are interested in a quote, just give us a call or email us today, thank you!