Does this apply to my association?
First determine community age, CCIOA status, unit count, declaration elections, and whether an owner, employee, or independent management contractor controls or disburses funds.
Colorado’s 30-unit rule does not cover every community. Formation date, declaration elections, exemptions, who controls funds, and management arrangements can change the answer.
What coverage does my association need?
HOA requirements
CCIOA planned-community HOA
- Does this apply to my association?
- Generally a post-June 30, 1992 CCIOA association with 30+ units when an owner or employee controls or disburses funds. Small, limited-expense, nonresidential, older, and opted-in communities need a review of their declaration.
- How much coverage do I need?
- Aggregate fidelity coverage ≥ two months of current assessments + reserves, both calculated from the association’s current budget.
- What should I prepare?
- The law does not set a price test for “reasonably available” coverage. Budgeted reserves can differ from cash, and older communities or communities with declaration-based exceptions need a document review.
- Who and what must coverage include?
- The statute says fidelity insurance without naming perils or insured classes. A management independent contractor must carry the same minimum unless named as an insured employee in the association contract.
- Are there exceptions or waivers?
- Required only to the extent reasonably available. There is no owner-vote waiver. Greater limits are permitted.
- When do I need coverage?
- The association and contractor must obtain and maintain coverage. Revisit the current-budget formula when the budget changes. No renewal interval is stated.
- What records do I need?
- No policy filing is specified. A pre-1992 community electing into CCIOA must record its executed and acknowledged election statement with the county clerk and recorder.
Condominium requirements
CCIOA condominium association
- Does this apply to my association?
- Generally post-June 30, 1992 condominiums with 30+ units where an owner or employee controls/disburses funds. Condominiums do not receive § 116’s small planned-community exemption, but the 30-unit trigger and legacy rules remain.
- How much coverage do I need?
- Aggregate fidelity coverage ≥ two months of current assessments + reserves calculated from the current budget.
- What should I prepare?
- Check whether an older community opted in, whether coverage is reasonably available, and whether a management contractor is named as an insured employee.
- Who and what must coverage include?
- Fidelity insurance is required. Named perils are not specified. Management contractors have a parallel obligation unless included as an insured employee.
- Are there exceptions or waivers?
- Coverage is required to the extent reasonably available. There is no owner-vote waiver.
- When do I need coverage?
- Obtain and maintain coverage. The law gives no fixed renewal interval or date for measuring the amount.
- What records do I need?
- No certificate filing is required under § 313. Retain evidence supporting the amount and availability.
How do I prepare to buy?
Identify formation date, community type, unit count, and any declaration election into or exemption from CCIOA.
Confirm whether an owner, employee, or independent management contractor controls or disburses funds.
Using the current budget, add two months of current assessments and budgeted reserves.
Confirm association and contractor coverage, or document why coverage is not reasonably available.
Common Questions
Does every Colorado association with 30 units need this coverage?
Not necessarily. The trigger, community age, CCIOA applicability, declaration elections, and statutory exemptions all matter.
Can owners vote to waive coverage?
No owner-vote waiver appears in the cited provision. The qualification is that coverage is required only to the extent reasonably available.
What must a management contractor carry?
For a 30-plus-unit association, the contractor generally carries the same minimum unless the association’s fidelity contract names it as an insured employee.
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