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CRIME & FIDELITY INSURANCE
Unfortunately, board members, employees, accountants, or volunteers may try to take
advantage of their positions and unlawfully access HOA funds or records. Crime and
fidelity insurance protects the association from the consequences of these crimes, with
coverage that typically ranges from $25,000 to $1 million.
What it covers:
• Employee theft
• Forgery or alteration
• Computer, check, or wire fraud
• Theft, disappearance, and destruction of community funds
While some states require community associations to carry a crime and fidelity policy,
there are other reasons to consider this type of coverage. Federal Housing Administration
(FHA) and Fannie Mae lending guidelines say that a condo or townhome community with
20 or more units and any association that collects more than $50,000 in annual income or
assessments must have crime insurance.
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