Protecting the association’s money.
Association funds pass through many hands: a treasurer, a manager, a bookkeeper, a bank. Crime and fidelity coverage replaces the money when one of them takes it, and lenders check the limit before approving a mortgage in your community.
What Crime & Fidelity covers, and what it leaves to another policy.
✓Covered
- Theft or embezzlement by a board member, treasurer, volunteer or employee
- Theft by the property management company, when it is named on the policy
- Forgery, funds transfer fraud and computer fraud
- Money in transit and money at the bank
→Handled by another policy
- Losses from bad decisions rather than theft (that is D&O)
- Theft of owners’ personal property
- Losses discovered after the discovery period ends
- Amounts above the limit, which is why the formula matters
See it in numbers.
How big should your crime limit be?
FHA and Fannie Mae expect the limit to cover at least three months of assessments plus all reserve funds. Enter your numbers.
We run this calculation at every renewal. Assessments and reserves both grow, so a limit that was right three years ago is usually short today.
Crime and Fidelity Coverage: Protecting the Association’s Money
From our Coverage Explained series: what it covers, how the limit is set, and the questions to ask before your next renewal.
Answers from our FAQ.
Why do you need crime/fidelity coverage?
How do we know if our crime limits are sufficient / what should our crime limit be?
What do we need to comply with current lending requirements?
What is typically covered under the HOA’s Master Policy?
What does a “5% per building” wind/hail deductible mean?
Want a second opinion on your policy?
Send us what you have. We review it, show you the gaps in plain English, and there is no obligation. Email associations@myinsurancewarehouse.com or start a quote.