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Do your Insureds Meet the New FHA Certification Requirements?


Background and Overview

FHA/HUD’s new condominium certification regulations took effect late last year while FHA-backed loans soared in popularity. 

Although there are several criteria for becoming FHA-certified, as the insurance advisor to this market, you can assist your condominium association clients by ensuring that they carry the required amount of Crime Insurance. 

We are receiving a number of requests for new and increased Crime limits. 

Have you spoken with your clients or prospects regarding this change?  Don’t let your condominium associations lose prospective homebuyers due to a lack of insurance. 

You can help your condominium association clients maintain prominence in this competitive housing environment, simply by contacting them and discussing the new requirements.

Crime Coverage Requirements

To comply with FHA certification standards, the association must:

Secure Crime insurance limits equal to/or greater than 3 months’ aggregate assessments plus the total amount of funds in the association’s reserve.

Deficiencies in crime insurance limits easily may be identified by simply reviewing the association’s financial statements. 

 Why Condo Associations Will Want to Comply

While FHA certification is not compulsory, it should facilitate the approval of many more potential condo buyers.  

Since the condo market remains soft, there are fewer qualified buyers in the marketplace. 

Therefore, if the condominium is not FHA-certified, the pool of potential buyers with access to purchase units will be reduced.  

Due to current mortgage constraints, some markets report having upwards of 20% FHA-backed loans.  If the association does not take this step toward certification, it may find itself out of the running for this large pool of buyers.  

Complying with this insurance standard should represent an operational goal that all associations endeavor to obtain. 

Crime Coverage Rates

Premiums start as low as $318 for a $25,000 Employee Theft limit, with higher limits up to $5,000,000 available.*

To obtain a quote for coverage simply visit our Crime Coverage Rate Indication page.  

For more information contact Adam Collins at IHG or call 818-742-1429.


CNA is the market leader in providing Liability and Crime insurance products for Condominium Associations. 


  * Premiums are annual and amounts are subject to underwriting conditions.

The information contained in this document is for general information only. It is intended to provide a general overview of the services and products offered. Only the policy can provide the actual terms, coverages, amounts, conditions and exclusions. All coverages are not available in all states. This document is not intended to be advertising or solicitation in states where the local regulations prohibit such usage.

One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states. CNA is a registered trade mark of CNA Financial Corporation. Copyright © 2011 CNA, 333 South Wabash Avenue, Chicago, Illinois, 60604. All rights reserved.

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