Members of the board of a homeowners’ association have many areas of responsibility and managing the insurance for the association is one of them.
Did you know that in Florida, homeowners’ associations (HOAs) are required to maintain criminal insurance or what is known as a fidelity or criminal relationship?
Loyalty bonds protect your business from employee theft. If an employee is given the confidence to handle cash or other valuable assets, it is a good idea to buy a fidelity bond 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 appointed by the board members.
The insurance policy or fidelity commitment must cover the maximum funds that will be in the custody of the association or its administrative representative at a certain time.
As stated in the statutes “If it is approved annually by a majority of the voters present at a duly convened meeting of the association, an association may waive the requirement to obtain insurance or fidelity for all persons who control or pay funds in the association. association ”, but you should definitely consider getting the coverage.
To read the details of this charter
This coverage can usually be added to your existing insurance or listed as a bond.
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