Boston Condo Association Requirements for Employee Dishonesty Insurance – Mortgage Tip

Fidelity Employee Dishonesty Insurance covers your Boston condo association in case someone were to steal or embezzle money from the condo board budget. For Boston condos with more than 20 units in the building, this insurance is actually required. The requirement says you must be covered for 300% of the amount of the monthly income amount in condo fees and coverage must equal or exceed 100% of money on deposit in all association accounts at any given time. If the condo association hires a management company, they *also* have to be covered, and also for 3x the monthly amount. Most management companies *are* covered (but you should still check), so this typically isn’t an issue. If there’s insufficient coverage, however, the project will be considered unwarrantable, and you may not be able to get your mortgage. This insurance is also called crime coverage, employee dishonesty coverage, or simply fidelity bonding.

Phil Ganz (354 Posts)

Philip D. Ganz is a Boston Mortgage Broker and Boston Home Loan specialist. For information, expertise, consulting, or advice about home loans, refinancing mortgages, or commercial property loans, contact Phil with no obligation: 617-529-9317

Sorry, comments are closed for this post.