If you're on the board of a Homeowners Association (HOA), a trustee, or the managing agent who made eye contact at the AGM — congrats. You're now part volunteer, part crisis manager, and full-time decision-maker. From barking dog complaints to budget meetings longer than Lord of the Rings, it’s a lot.

But one responsibility you can’t afford to put on the “we’ll deal with it later” list? Making sure your community scheme insurance is solid.

So, What Exactly Is Community Scheme Insurance?

Community scheme insurance is like your HOA’s financial safety net. It protects shared property and infrastructure — the things individual homeowners don’t cover under their own home insurance. Think security gates, guardhouses, perimeter walls, communal pools, clubhouse roofs, and yes… the lift that breaks every third Tuesday.

It's required under the Community Schemes Ombud Service (CSOS) Act and the Companies Act. So it’s not a “nice-to-have” — it’s a legal must-have. The real question isn’t if you need it. It’s whether your current cover actually stacks up.

What's Covered — And What’s Often Missed

What’s Covered:

Most HOA policies are designed to cover physical structures on communal property. For example:

• A leaking clubhouse roof after a storm? Covered.
• The boom gate flattened by a distracted Uber driver? Covered

What’s Often Missed

Not all policies are created equal — especially if you went with the cheapest quote or haven’t reviewed it since the pre-COVID era. Here’s what often falls through the cracks:

• Public Liability – In case someone gets injured on common property.
• Fidelity Cover – Protection if your treasurer “accidentally borrows” from the reserve fund.
• SASRIA – Cover for riot or civil unrest damage (still very relevant).

If those aren’t included, your complex could be exposed — and not in a good way.

The Common Pitfalls That Catch HOAs Off Guard

We’re not here to judge — we’re here because we’ve seen it all. Some of the most common (and costly) oversights include:

1. Outdated Replacement Values

If your policy is based on building values from five years ago, you’re already underinsured. Building costs have surged. Get a professional valuation annually to ensure your cover reflects current reality.

2. Assuming Homeowner Policies Cover Everything

They don’t. Owners are responsible for their units and contents. The HOA must cover shared spaces and structural elements. Mixing the two is like using a microwave to dry your laundry — sounds clever, ends badly.

3. Ignoring Liability Cover

If someone slips on a wet staircase or gets hit by a falling tree branch in the park area, the HOA could be held liable. Without liability cover, legal fees could burn through your reserve fund faster than a clubhouse braai.

4. Not Reviewing the Policy Annually

You check the budget, chase levies, and debate pool pump costs — but insurance gets renewed on autopilot. That’s how policies become outdated and useless when you need them most.

Why the Right Broker Makes All the Difference

Let’s be honest: Trying to decode policy schedules, exclusions, and excesses while also managing community drama is… well, no one’s idea of a good time.

That’s where working with a specialist broker (like us 😉) makes your life easier.

At TI Brokers, we don’t just tick the compliance box. We:

• Read the fine print
• Compare tailored quotes
• Highlight risky gaps in cover
• Help you avoid underinsurance penalties
• Support you during claims (no ghosting here)

We make sure your scheme is properly protected, not just technically covered.

Final Thoughts

Running an HOA is no small feat. You’re juggling money, maintenance, people — and the occasional neighbourly feud. The last thing you want is to realise your insurance didn’t have your back when disaster struck.

Don’t cross your fingers and hope for the best. Let us take a look.

TI Brokers is here to help South African HOAs get the right cover — without the corporate mumbo jumbo. We’ll make sure you’re protected where it matters and supported when it counts.

TI Brokers
Insurance that speaks your language – so you don’t have to.