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
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!
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!
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.