Continuously Monitoring All New Laws and Legislation
Our responsibility and commitment to you and your community goes far beyond providing effective day-to-day property management. We also stay on top of all new and revised Florida property management legislation that may impact your homeowner association. We continuously monitor all local, national and municipal legislative changes as they occur. Our goal is to keep you informed about what these modifications mean and how your community and residents may be affected.
New Florida Law Calls for HOAs to Carry Sufficient Fidelity Coverage on Insurance Policies
Effective July 1, 2013, Chapter 720 of the Florida Statutes, a.k.a. “The Florida Homeowners Act,” meant to provide another level of protection for an association’s financial assets, has been updated. The statute reads:
The association shall maintain insurance or a fidelity bond for all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. As used in this subsection, the term “persons who control or disburse funds of the association” includes, but is not limited to, persons authorized to sign checks on behalf of the association, and the president, secretary, and treasurer of the association. The association shall bear the cost of any insurance or bond. If annually approved by a majority of the voting interests present at a properly called meeting of the association, an association may waive the requirement of obtaining an insurance policy or fidelity bond for all persons who control or disburse funds of the association.
For Frequently Asked Questions about the statute, or to learn how FirstService Residential can help ensure you are in compliance with the new law, click here.
For more information, please visit the Florida State Senate site.