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## II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
### C. Condominium Project Approval
#### 2. Project Eligibility
##### (2) Standard
The Condominium Association must maintain comprehensive Liability Insurance for the entire Condominium Project, including all Common Elements and areas, public ways, and other areas that are under its supervision, in the amount of at least $1 million for any single occurrence.
##### (3) Required Documentation
The following documentation must be submitted:
- Form HUD-9992; and
- Certificate of insurance or a complete copy of the insurance policy.
### (C) Fidelity Insurance
#### (1) Definition
Fidelity Insurance refers to insurance that protects the Condominium Association against employee dishonesty, crime, or other fraudulent acts conducted by one or more employees.
#### (2) Standard
For all Condominium Projects with more than 20 Units, the Condominium Association must maintain Fidelity Insurance for all officers, directors, and employees of the Condominium Association and all other persons handling or responsible for funds administered by the Condominium Association.
This insurance coverage must be the greater of either:
- Three months of aggregate (12-month) assessments on all Units plus reserve funds (up to the maximum permitted by state law); or
- The minimum amount required by state law.
For existing policies, an uninsured amount within 3 percent of the above calculation or $10,000, whichever is less, is acceptable.
If the Condominium Project engages a management company, it must have a policy that covers both or separate policies. The policy or policies must demonstrate that they specifically meet the standard for both the Condominium Association and the management company.
#### (3) Required Documentation
The following documentation must be submitted:
- Form HUD-9992; and
- Certificate of insurance or a complete copy of the insurance policy from the Condominium Association and/or from the management company.
**Handbook 4000.1 796**
**Last Revised: 01/10/2025**