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Condo Insurance- Dishonesty Coverage increased to $47,040- Fannie and Freddie Change.

We are seeing another Fannie and Freddie change, this time when it comes to condo coverage that the condo associations and/or management companies must have. It's regarding dishonesty coverage. Fannie and Freddie used to only require $10,000 dishonesty coverage. This is related to liability insurance. Horror stories are popping up all over the county where employees of the associations or management companies were embezzling the dues that was coming in.

See a related story below about what happened near Chicago.

http://www.nbcchicago.com/news/local-beat/willow-springs-condo-van-witz-management-complaints-56662742.html

Posted by Danell Merren on 11/06/2009 12:57 PM

Comments (3)

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dishonesty coverage increased on condo insurance

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3 Comments on Condo Insurance- Dishonesty Coverage increased to $47,040- Fannie and Freddie Change.

NOV

Hi Danell, I'm quite familiar with condos and associated fees but have not heard the term "dishonesty coverge ". Please explain. Thanks !

Hi, Bill. We had the term come up on two different condo associations recently where the bank we were using, Fifth Third, explained that Fannie and Freddie have changed coverage requiring that as part of the liability coverage that covers employees this would have to be increased- basically to protect the associations from folks who were embezzling.

NOV

Hi Danell, Yikes, wasn't aware of that although I can see how it could happen. Thanks for the reply.

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