What does condo risk look like in practice?
Picture a routine board meeting. The conversation starts with updates on landscaping or elevator repairs. Then someone mentions a financial discrepancy — a missing invoice, a wire transfer no one recalls, a check that doesn’t match the records. Suddenly, the conversation shifts. The risk becomes personal, immediate, and very real.
As insurance agents, you know risks don’t always come from outside. Sometimes, they come disguised as familiarity, routine, or a board member who’s been around “forever.”
This article explores how crime insurance for condos serves as a financial backstop when internal vulnerabilities surface. You’ll walk away with insights on identifying red flags, advising clients on emerging threats, and recommending coverage that’s purpose-built for how condo communities operate.
Why Is Crime Insurance Essential?
Even the best-run condo associations face a risk that’s difficult to quantify: trust. Bylaws, financial protocols, and oversight processes are only as strong as the people carrying them out.
Take this example: A long-serving treasurer creates a fake vendor and redirects small payments to a personal account. The transactions look routine. Over time, the losses add up — until a new board member uncovers them during an audit. By then, thousands are gone.
Unfortunately, this scenario isn’t uncommon. One report found that organizations lose about 5% of annual revenue to fraud. While this data spans all industries, condo associations are no exception, especially those with rotating leadership, lean staffing, or limited oversight.
That’s where crime insurance matters. It’s not just about reacting to theft. It’s about reinforcing a community’s financial structure when trust is breached and controls don’t catch what they should.
What Does Crime Insurance Cover for Condos?
Unlike general business policies, crime insurance for condos from Kevin Davis Insurance Services (KDIS) is designed specifically for community associations. Every component of the policy aligns with common scenarios boards actually face.
Here’s what the policy includes:
- Employee dishonesty: Covers theft or embezzlement by board members or staff misusing association dues
- Forgery or alteration: Protects against tampered checks or falsified documents
- Funds transfer fraud: Covers wire scams targeting reserve accounts
- Computer fraud or restoration: Responds to payroll system hacks or lost digital records
- Social engineering: Helps recover from schemes where staff are tricked into sending funds to impostors
Each of these exposures reflects claims KDIS has seen firsthand across more than 40,000 community associations. That depth of experience means policies are calibrated to the vulnerabilities that matter most.
Why Agents Must Stay Ahead of Emerging Condo Crime Risks
As associations adopt digital tools for communication, banking, and recordkeeping, their exposure to crime grows. Email impersonation, wire transfer fraud, and phishing campaigns targeting board members are on the rise. The sophistication of these attacks continues to outpace many associations’ internal protections.
Being proactive about these risks sets you apart as an agent. Educating your clients on both traditional and emerging threats positions you as a trusted advisor, not just a policy seller.
Here are a few red flags worth raising in client conversations:
- Only one person on the board has check-signing authority.
- No formal cybersecurity practices are in place.
- The association hasn’t had a third-party audit in over a year.
- Large electronic transfers happen without dual verification.
Each of these issues signals a potential blind spot in your client’s internal controls.
Helping Agents Safeguard Condo Clients
At its core, crime insurance exists to preserve the integrity of a community’s financial operations. It’s there when a well-meaning board gets tricked, or when someone with access decides to exploit a system no one thought to double-check.
Here’s a quick checklist you can use with clients to guide those risk-focused conversations:
- Are reserve funds properly separated and monitored?
- Do large transactions require at least two board sign-offs?
- Is the board trained to recognize phishing and impersonation scams?
- Are digital systems reviewed regularly for security flaws?
These questions help spark meaningful conversations and show clients your value as a forward-thinking advisor.
At Kevin Davis Insurance Services, we’ve worked with over 40,000 associations nationwide. Our crime coverage is shaped by years of real-world condo claims, from embezzlement and check tampering to cyber breaches and wire fraud.
Call us today to see how our tailored crime insurance solutions can help protect your condo association clients and the shared spaces that hold their communities together.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (855)-790-7393 to speak with one of our representatives.