New Tennessee laws mandate fidelity bonds for HOAs, restructure insurance committees

Senate Bill 2326, chaptered as Public Chapter 731 on April 23, 2026, amends Tennessee Code Annotated, Title 66, Chapter 27. Starting January 1, 2027, any HOA that collects assessments for common expenses must obtain and maintain a blanket fidelity bond. The coverage must protect the association against losses from theft or dishonesty by its officers, directors, persons employed by the HOA, managing agents, or employees of those managing agents.