As reported by Auto Home Owners Insurance:
Did you know in 2013 a new law was put into place requiring Homeowners Associations to maintain Crime Insurance or Fidelity Bonding coverage for board members and all persons who control or disburse Association funds? Adding this coverage to existing General Liability policies for current HOA customers is simple.
Crime coverage, also call Fidelity Insurance or a Fidelity Bond, can protect the association from various forms of theft, embezzlement, forgery, and more from both employees and outside parties. There are many different coverage forms available so discuss your needs with your agent to figure out what needs your association has. A few of the more common coverages are below.
Employee Dishonesty- This provides coverage for the dishonest acts of an employee resulting in a financial loss to the association.
Theft, Disappearance and Destruction- Coverage is provided for loss of money and securities due to one of the mentioned coverage.
If you need this additional coverage or want to review your coverage, please contact one of our professionals.
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