Fidelity Insurance

What is fidelity insurance in an HOA context?

Fidelity insurance, also called a fidelity bond, protects the HOA against financial loss from dishonest acts such as fraud, theft, or embezzlement by board members, employees, or other individuals who handle the association’s funds.

Why is fidelity insurance important?

Many HOAs are led by unpaid volunteers with little to no formal financial training. Fidelity insurance gives the community peace of mind that, if funds are misappropriated, there’s a mechanism to recover them. 

How can you use “fidelity insurance” in a sentence?

We’ve had some issues with boards and management companies in the past, but thanks to a new group of volunteers and a good fidelity insurance policy, our neighborhood association is back on track.