Homeowners’ association blanket fidelity bond or insurance policy. [Effective January 1, 2027.]

A homeowners' association collecting assessments for common expenses shall obtain and maintain a blanket fidelity bond to insure the HOA against losses resulting from theft or dishonesty committed by the officers, directors, or persons employed by the HOA, or committed by any managing agent or employee of the managing agent. Such bond or insurance policy must provide coverage in an amount equal to the reserve balances of the association plus one-fourth (¼) of the aggregate annual assessment income of such HOA; provided, that the minimum coverage amount must be ten thousand dollars ($10,000). The board of directors or managing agent may obtain such bond or insurance on behalf of the HOA.