Crime coverage is a very important coverage for all homeowners and condominium associations as it protects the association’s funds from a board member or property manager absconding with their funds as well as other third parties.
Florida Statute 718 has required Crime coverage to be carried by condominium associations for the maximum amount of funds in all of the association’s accounts for many years. Homeowners associations have only been required to carry Crime coverage since July 1, 2013, when Florida Statute 720 requires all homeowners associations to also cover the maximum amount of funds in all accounts.
Crime coverage not only covers if a board member or property manager should abscond with the funds, it also covers third party theft of the association’s funds, including Forgery or Alteration, Computer Fraud and Funds Transfer Fraud, etc.
Forgery or alterations coverage protects the association when a third party has forged or altered an association check for financial gain.
Computer Fraud coverage protects the association from a hack to the associations or property managers computer where the associations funds are fraudulently transferred to an account of the third party.
Funds Transfer Fraud coverage protects the association from fraudulent transfer instructions being made by the third party to the associations bank to transfer the funds of the association to the account of the third party, without the knowledge of the association or property manager.
There are additional Crime coverage parts that can be included at your request including theft, robbery, ERISA, etc.
Protecting the associations funds is part of the responsibility of all board members and having the proper coverage to protect the funds from theft is very valuable for all associations.