Condo Associations (COAs) and Homeowners Associations (HOAs) manage large sums of money, making them prime targets for dishonest employees, board members and cybercriminals. Whether they rely on a property manager or manage their operations in-house, the risk of economic loss due to theft or fraud is real. One incident of embezzlement, forgery, or social engineering can cause significant financial harm.
Why Choose Great American for Your COA and HOA Coverage?
Our dedicated team can provide a comprehensive crime policy to help protect the funds a condominium and homeowners association has in its operating and reserve accounts. Community Associations are encouraged to carry Crime and Employee Dishonesty (Fidelity) insurance, and in many cases, associations are required to carry Fidelity/Crime coverage by lending institutions and/or by statute. If a property manager is utilized, agents should make sure Employee Dishonesty coverage is extended to them and that adequate limits are in place. Highlights of our coverage include:
- Inclusive Eligibility: No restrictions on association size, employee count, or amenity restrictions. Ability to tailor coverage to fit an association’s specific needs.
- Comprehensive Coverage: Available for a variety of associations, including:
- Homeowners Associations (HOAs)
- Condominium Associations (COAs)
- Commercial Property Associations
- Cooperatives
- Extended Protection: Coverage can be extended to board members, volunteers, and the association’s property manager.
- Flexible Options: Coverage available as monoline, either primary or excess. Competitive terms and rates.
- Specialized Coverage: Social Engineering/Fraudulently Induced Transfers coverage offered.
- High Capacity: Up to $50 million in Crime coverage.
- Experience: Experienced claims and underwriting team with an average of over 30 years’ experience in their respective fields. Over 20 years of experience underwriting and handling claims for this class of business. Programs can be developed for large books of business.
Additionally, the following loss prevention measures should be considered:
- Prohibit the property manager or a single board member from having too much authority.
- The board should receive bank statements directly from the bank (by mail or electronically, not furnished through the property manager) and review/reconcile monthly.
- Prohibit the property manager from being the sole authorized check signer on any association bank accounts. The board should confirm this with the bank at the time a new property manager is hired and when a new board (or individual board members) are appointed/elected.
- When there is a board turnover or new property management company, make sure consistent controls remain in place. Also, ensure the new board updates the names on the bank accounts.