ACM Completes Fidelity Bond Review for All Communities
ACM Completes Fidelity Bond Review
for All Communities
Protecting your property against possible fraudulent acts by staff, board members or others might not be the most pleasant task, but it could save you hundreds if not thousands of dollars if the unthinkable happens.
That’s why ACM took the proactive step to conduct a review of its communities to ensure they each had adequate protection in the form of a fidelity bond. Fidelity bond coverage is a form of insurance protection that covers losses that an association could incur from dishonest or fraudulent acts carried out by a board member or an employee.
Having adequate fidelity insurance in place:
- Protects the association’s bank accounts and other assets
- Is mandatory in the State of Maryland for FHA approval
- Enhances resale potential
Charlene Pindell, vice president of community operations for ACM’s greater Baltimore division, says fidelity coverage should cover an association’s assets, its employees, and its managing agent.
“We believe that it is important to take a proactive approach to ensure that our client's assets are fully protected and that they are aware of the coverage that they currently have as well as any changes needed to prevent deficiencies,” says Pindell.
Sheri Courtock, senior portfolio manager, led in the development of the tool used to collect and organize the information ACM needed to conduct the review process. Courtock explains that the process required extensive research by its team to determine the levels of each property's bank accounts, reserves, money markets, and quarterly/monthly dues revenues. However, she noted it was well worth the effort.
“By taking the extra steps to review each of our client’s current coverage and asset levels, and discussing any shortfalls with the board of directors, we were able to make sure that every client obtained appropriate levels of coverage required by Maryland law,” says Courtock.
The fidelity coverage review is just one of the many services offered by ACM to help its clients meet their legal obligations and preserve their assets.