Does this apply to my association?
The trigger is collecting assessments for common expenses. Use the separate Property Owners’ Association Act or Condominium Act provision and note the condominium owner-notice requirement.
What coverage does my association need?
HOA requirements
Property owners’ association
- Does this apply to my association?
- Any property owners’ association collecting assessments for common expenses.
- How much coverage do I need?
- Max[$10,000, lesser of ($1,000,000) or (reserve balances + 25% of aggregate annual assessment income)].
- What should I prepare?
- The law does not give dates for measuring the inputs, explain deductible treatment or policy length, or name volunteers outside the listed roles.
- Who and what must coverage include?
- Theft or dishonesty by officers, directors, association employees, managing agent, or managing-agent employees.
- Are there exceptions or waivers?
- No waiver or availability exception. Board or managing agent may procure coverage.
- When do I need coverage?
- Obtain and maintain coverage continuously. The law gives no renewal interval or date for measuring the amount.
- What records do I need?
- No policy filing, certificate, or owner notice is stated in this section.
Condominium requirements
Condominium unit owners’ association
- Does this apply to my association?
- Any unit owners’ association collecting assessments for common expenses.
- How much coverage do I need?
- Max[$10,000, lesser of ($1,000,000) or (reserve balances + 25% of aggregate annual assessment)].
- What should I prepare?
- The law does not give measurement dates, explain how the $10,000 floor works with a deductible, or name volunteers outside the listed roles.
- Who and what must coverage include?
- Theft or dishonesty by officers, directors, employees, common-interest-community manager, or manager employees.
- Are there exceptions or waivers?
- There is no waiver or availability exception. The executive board or manager may procure coverage.
- When do I need coverage?
- Obtain and maintain continuously. Prompt written notice is required after obtainment and each change or termination.
- What records do I need?
- Give every unit owner prompt written notice under § 55.1-1963(C) using § 55.1-1949(A) notice rules. No state filing is required.
How do I prepare to buy?
Confirm the association collects common-expense assessments and select the HOA or condominium provision.
Add reserve balances to 25% of aggregate annual assessment income or assessments.
Apply the $1,000,000 cap, then ensure the final amount is at least $10,000.
Check the named people and theft/dishonesty coverage. Condominium boards must promptly notify owners when coverage is obtained, changed, or terminated.
Common Questions
What is Virginia’s formula?
Use reserves plus 25% of aggregate annual assessments, cap at $1 million, and ensure at least $10,000.
Do condominiums have an additional notice duty?
Yes. Owners must receive prompt written notice when coverage is obtained and whenever it changes or terminates.
Can owners waive the requirement?
No waiver appears in either cited provision for an assessment-collecting association.
Calculate coverage and read the law
Coverage Calculator
Estimate a starting amount using your association's financial information.
Open calculator