• Skip to primary navigation
  • Skip to content
  • Welcome
    • Top Ten Reasons to Appoint Pilot Property Management
  • About PPM
  • Contact US
  • What Others Say
Pilot Property Management

Pilot Property Management

Serving Coastal North San Diego County (Vista & San Marcos), too

  • Services
    • FAQ’s
    • Homeowner Association Management
    • Financial Management Only
    • Rental Management
    • Collections
  • PPMHandbook
    • What Does A Property Management Do?
  • Explore Payment Options
  • Privacy

Do we need fidelity insurance?

September 24, 2018 By Pilot Prop

Short answer. If you have any money at all yes. Long answer. The need to buy and the basis of the amount you buy may be specified in your governing documents. Unfortunately some insurance and some management companies do not read the governing documents to determine first whether bonding is required and secondly if so what amounts should be insured. Associations do have difficulty deciding how much to insure for.. Once a year review the limits to ensure they are adequate in the event of a loss.

One guide might be the sum of all the different bank accounts at one moment of time PLUS  say 3 months of dues.

Imagine that there was $300,000 in total invested in certificates of Deposit and perhaps a money market account of $35,000 and checking account of $15,000 with monthly dues of  $8,000.

My recommended bond would be $374,000 call it $375,000.made up as follows. There are a total of $350,000 in the various checking and savings accounts including the CD’s and 3 months of dues would be another $24,000. This is a formulaic suggestion. Someone else might choose a different number based on other factors.

1110

Filed Under: Association Management: Insurance

Menu

  • Welcome
    • Top Ten Reasons to Appoint Pilot Property Management
  • About PPM
  • Contact US
  • What Others Say

Copyright © 2025 · Revolution Pro on Genesis Framework · WordPress · Log in

Scroll