Practice Area

HOA Fidelity Bond — When an Officer or Manager Steals Association Funds

Texas Courts · Texas Insurance Code

Situation — How This Comes Up

We discovered our HOA treasurer has been embezzling from the association for years.

What You Need to Know First

A fidelity bond is the HOA’s primary protection against officer and employee theft. If the HOA does not have a fidelity bond — or the bond was inadequate — the board members who failed to obtain coverage may be personally liable.

Full Analysis

HOA fidelity bonds protect the association against financial losses caused by dishonest acts of officers, directors, and employees. Most HOA governing documents and some Texas statutes require fidelity coverage. When coverage is absent and theft occurs, the uninsured board faces personal liability.

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The information on this page is for general informational purposes only. Nothing here constitutes legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney–client relationship. © 2026 Silachi Law Firm, PLLC · Texas Bar No. 24118480