5 things you should know about your body corporate’s insurance cover.
Body corporate insurance cover.
Every year at a Body Corporate’s AGM owners are asked to approve the Insurance Replacement Values of the scheme, but do you really know what to look for? Here’s 5 things you as an owner should know about your Body Corporate’s insurance policy:
Normally all fixtures in a building are covered under the Body Corporate Insurance Policy, but there might be exclusions or notes under the memo section on the policy that could exclude items or set special conditions.
Is there geyser cover on the policy or is the Body Corporate covering the replacement of geysers out of their own cash reserves? Also, make sure that you look at the excesses that might be applicable to geyser claims.
In terms of the Sectional Titles Schemes Management Act it is compulsory for all Body Corporate’s to have a valuation of their insurance replacement values done every three years. Has a valuation been completed in the last three years for the scheme? If so, have the valuation figures been applied to the actual insurance policy?
Fidelity Insurance Cover
Another addition to legislation for community schemes is the need for fidelity cover on all community scheme funds.
Has the scheme got Fidelity Insurance Cover on the actual funds of the scheme, whether held by the complex themselves or in another account run by a managing agent or an administrator?
Have the insured values been presented and approved as part of an agenda item at the AGM and did your AGM documentation include a schedule
reflecting the values? Also keep in mind that insurance replacement values are not the same as market-related values.
Body corporate insurance cover