How State Fidelity-Bond Requirements Differ

Applicability comes before arithmetic

A state may regulate condominiums and planned communities in different chapters. Formation date, number of units, residential use, expense level, statutory election, and who controls money may narrow the rule.

For example, Colorado's cited provision generally uses a 30-unit trigger and requires analysis of CCIOA status, community age, exemptions, and fund control. Delaware's DUCIOA framework contains formation-date and small-community qualifications. Neither should be reduced to a universal label.

Amount rules use different structures

California uses reserves plus three months of assessments for covered Davis-Stirling associations. Florida's cited HOA and condominium provisions use maximum funds in association or management-agent custody at one time. Delaware requires fidelity insurance to the extent reasonably available but states no dollar formula in the cited section.

Virginia uses a floor and a capped formula tied to reserves and annual assessment income. A method valid in one state may materially understate or overstate another state's rule.

People, perils, and waivers also differ

Some statutes list officers, directors, employees, managers, or everyone controlling or disbursing funds. Some expressly address computer or funds-transfer fraud. Others do not enumerate perils.

Waiver language is equally specific. Florida's Chapter 720 HOA provision allows an annual waiver through the described member vote, while its cited condominium provision has no parallel annual waiver. Oregon's official HOA and condominium provisions contain a post-turnover annual vote mechanism. Exact prerequisites matter.

• Never infer a waiver from silence.
• Do not transfer an HOA exception to a condominium provision.
• Check whether unavailability triggers notice rather than waiver.
• Record timing, vote, notice, and retention requirements.

Build a complete state comparison

For each potentially applicable provision, capture entity, applicability, amount, covered people and perils, waiver or exemption, timing, documentation, and ambiguity. Link directly to the official source and record the review date.

Use the current official text, association governing documents, and complete policy or bond wording together. Ask counsel to resolve uncertain applicability.