Definition
Coverage (also called crime insurance) that protects HOA funds against theft, fraud, or embezzlement by those who handle the money.
Fidelity insurance — sometimes called crime or employee-dishonesty coverage — protects the association's funds against theft, fraud, or embezzlement by board members, employees, or a management company handling the money.
Because HOAs collect and hold significant funds, this coverage is important anywhere money changes hands, and some states or lenders require it. Boards should size the coverage to the amount of funds typically under the association's control, including reserves, and confirm any management company is included.