4 Crimes Committed Against Homeowners Associations

4 Crimes Committed Against Homeowners Associations

When looking for homeowners association insurance, be sure to include a crime policy. There are many types of crimes committed against an HOA. It is better to have coverage against these common crimes than financial losses.


As seen on https://www.kdisonline.com/, HOAs are victims of theft more often than directors and officers would like to think. HOAs often have a lot of money sitting in the bank. A dishonest employee can steal that money a little at a time if left unchecked.


While directors and officers insurance protect the HOA from crimes committed by the board, crime insurance helps protect against other types of fraud. Look for signs of fraudulent activity with vendor prices, service provider fees, revenue decreases and incorrectly addressed checks.


Forgeries are another crime perpetrated against HOAs. A dishonest employee may forge a board member’s signature to move funds, approve architectural applications or something else not generally approved by the HOA.


Data breaches and other cybercrimes are on the rise. HOAs are not immune to these types of crimes any more than other businesses. The main reason is the use of electronic funds transfers for payments. Criminals can hack these and steal money or member information.

Crime insurance should be part of your homeowners association insurance coverage. Without it, the HOA may be on the hook for the financial loss and any resulting lawsuit that comes from it.