Surety One, Inc. is a fidelity bond specialist. We offer twenty-nine years of experience underwriting fidelity and surety bond products to individuals and businesses in all fifty states, Puerto Rico and the U.S. Virgin Islands. The following is helpful information for understanding your particular jurisdictional requirement and generally what protection a commercial crime policy provides. Should you have questions about a homeowner's association fidelity bond, condominium owners' association fidelity bond or related insurance product we are always available to you at (800) 373-2804, by email at Underwriting@SuretyOne.com or click here for live chat.
Florida HOA & COA Fidelity Bond for Officers
Pursuant to 720.3033(5), an association must maintain a fidelity bond to cover all persons who control or disburse funds of the association. The HOA fidelity bond must cover the maximum funds that will be in the custody of the association or property management agency at any one time. Read more!
Maryland COA Fidelity Bond
Pursuant to 2010 MD Real Property Code Title 11 a/k/a the "Maryland Condominium Act" Section 11-114.1, the council of unit owners or other governing body of a condominium association must maintain a fidelity bond to cover all persons responsible for the operation or maintenance of the condominiums or who controls or disburses funds, including management companies. The COA fidelity bond must equal the lesser of $3mn or investment balance + three months of assessments. Application
Nevada COA Fidelity Bond
NRS requires a fidelity bond which extends coverage to any business entity that acts as the community manager and the employees of that entity. The fidelity bond or commercial crime insurance must be in a minimum amount of no less than three months of aggregate assessments on all units plus reserve fund, or $5,000,000, whichever is less.
Massachusetts HOA Fidelity Bond
An organization of unit owners in condominiums of more than ten units must secure and maintain, at its own cost and expense, blanket fidelity bond in an amount equal to at least one-fourth of the annual assessments.
California HOA Fidelity Bond
Effective January 1st, 2019, each HOA will be obligated to purchase and maintain a California homeowners association fidelity bond to protect owner's collective HOA assets from the dishonest acts of board members and directors. California Civil Code (Sec. 6., 5806) has been modified to impose this requirment. Read more!
Illinois COA Fidelity Bond
Pursuant to Section 12 and 12.1 of the Illinois Condominium Property Act, a COA with six or more dwelling units must purchase a fidelity bond covering all persons who control or disburse funds on behalf of the association. The bond must be for the maximum amount of coverage available to protect funds in the custody or control of the association, plus the association’s reserve fund.
Mississippi HOA Fidelity Bond
Unless the governing documents of the HOA require greater coverage the association must purchase a fidelity bond to cover its directors, officers, and employees in an amount that is equal to no less than the combined amount of the reserves of the association and total assessments for highest balance during the previous year.
Delaware COA Fidelity Bond
Management of the Common Interest Community, code section §81-313(3), obligates a COA to purchase a fidelity bond if the community property building contains more than one unit having horizontal boundaries or vertical boundaries that comprise common walls.
Delaware Unit Owners Fidelity Bond
Pursuant to §81-313. Insurance., (a) Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available: (3) Fidelity insurance. The statute is silent on the amount however compliance should be met with sufficient bond to cover all assessments and reserves in the unit owner's account. Application
FIANZA DE CRIMEN COMERCIAL PARA HOAs
Asociaciones de propietarios comunes y juntas de vecinos manejan fondos comunitarios y por ende presentan los riesgos de desfalco, malversación y fraude de los mismos. Una póliza de crimen comercial, o "fianza de fidelidad" extiende una amplia protección a esos fondos a precios asequible. Igual, empresas de gestión de bienes raíces asumen los mismos riesgos y su equipo de mantenimiento cuando presentes en las residencias. Para las agencias de gestión ofertamos una fianza de "tercera parte" que efectivamente cubre actos de deshonestidad cuando tal equipo entra una residencia para proveer sus servicios. ¡Aprenda más!
Virginia COA Fidelity Bond
Per the Code of Virginia § 55.1-1963(B), Any unit owners' association collecting assessments for common expenses shall obtain and maintain a blanket fidelity bond in an amount equal to the lesser of $1 million or the amount of reserve balances of the unit owners' association plus 25% of the aggregate annual assessment of such unit owners' association (min. bond $10,000).
Connecticut Community Association Fidelity Bond
Sec. 47-255. Insurance. (a)(4), requires that an onwer's association maintain, to the extent reasonably available and subject to reasonable deductibles, a fidelity bond.
Colorado Ownership Association Fidelity Bond
The Colorado Common Interest Ownership Act (CCIOA) requires post-CCIOA communities to purchase a fidelity bond in an amount equal to no less than two months of assessments plus total reserves.
Fidelity Bonds and Federally Regulated Condominiums and Cooperatives
With a few statutory excpetions, FreddieMac requires condominium associations and "cooperative corporations" to maintain a fidelity bond that meet the following criteria:
- The COA fidleity bond must name the condominium association or cooperative as the insured and premiums must be paid as a common expense by the same.
- The COA fidelity bond penalty (coverage limit) must be no less than the maximum amount of funds held by the condominium association cooperative, or a property management firm that manages the COA or cooperative, at any one time.
In States that require condominium homeowners associations or Cooperative Corporations to carry fidelity bonds on terms or conditions different from Freddie Mac's, Freddie Mac will accept compliance with the state's requirements to be adequate for Freddie Mac's.
The condominium onwers assocation fidelity bond must cover losses resulting from dishonest or fraudulent acts committed by directors, officers, managers, trustees, employees and volunteers who handle or manage funds collected and held for the condominium homeowners association or cooperative corporation. A professional property management firm is NOT exempt. It must be to the same coverage level as a COA or cooperative that manages its own operation.
Bonding of Service Providers
If your association hires outside general contractors, landscapers, janitors, pool and miscellaneous maintenance services, those parties should be covered by a third party fidelity bond to protect the association members' property from loss due to dishonesty. Business services bonds are inexpensive and well worth the investment.
Fidelity bond application review and quoting are free of charge. There is no obligation to purchase.
