So, you've agreed to be a trustee in your complex. Congrats! You now have a front-row seat to all the joys of geyser drama, rising maintenance costs, and deciding whether that mysterious crack in the wall is structural… or just part of the charm.

But there’s one thing you really can’t afford to guess your way through: sectional title insurance.

Whether you’re brand new to the role or the seasoned voice of reason on the WhatsApp group, understanding how sectional title insurance works could save you (and your complex) from serious financial surprises down the line.

What Is Sectional Title Insurance – and Why Should You Care?

Sectional title insurance is the unsung hero of body corporate management. Required by law under the Sectional Titles Schemes Management Act, it ensures that your complex’s buildings, common property, and structural components are properly insured against damage, disaster, or just plain bad luck.

Put simply: when the wind howls, the pipes burst, or a fire breaks out — this is the policy that steps in. It’s not optional, and it doesn’t just protect individual owners; it protects the entire scheme.

As a trustee, it’s your job to make sure the policy isn’t just in place, but also up to date, correctly valued, and actually suited to your scheme’s needs.

What’s Typically Covered?

Most sectional title insurance policies cover the buildings and structures as originally built — including roofs, walls, windows, tiles, geysers, and even built-in cupboards. It also extends to common property such as stairwells, walkways, garages, pools, and shared gardens.

If it’s nailed down, cemented in, or on the approved building plans — it’s probably covered.

But here’s where many trustees trip up: assuming the standard cover is “good enough.” Spoiler alert — it usually isn’t. Property values change, construction costs rise, and inflation doesn’t sleep. A professional replacement valuation should be done completed every three years in line with the requirements of the CSOS Act. The value should be assessed annually with all matters taken into consideration including whether inflation and escalation was included with your valuation complete for example.

You’re Covered… But Are You Really?

Let’s say a fire breaks out and causes major damage. You breathe a sigh of relief: “At least we’ve got insurance!”

But the insurer says the complex is underinsured. That means your payout is reduced proportionally (this is termed “Average being applied) , and the body corporate or the individual owners have to cover the shortfall. In plain terms: every owner now has to chip in more cash — and you, as trustee, might have to explain why the cover didn’t match the risk.

Underinsurance isn’t just a gap in paperwork — it’s a potential special levy waiting to happen. And in some cases, trustees could be held liable if it's proven they didn’t act in the best interest of the scheme.

The Trustee Insurance Guide No One Gave You

As a trustee, you have a fiduciary duty to act in the best interests of the scheme. That includes:

• Making sure the right policy is in place
• Reading the fine print (yes, really)
• Ensuring the insurer is reputable and responsive
• Getting updated valuations
• Reviewing the policy annually

And don’t forget — owners are still responsible for insuring their own contents and improvements and are held responsible for anything that is part of their section. If someone installs a jacuzzi or remodels their kitchen, anything that becomes a fixture in the unit, it is the individual owners responsibility to establish how and where to insure this and not the body corporate. A well-informed trustee educates owners on this too — because finger-pointing after a claim helps no one.

Not Just a Grudge Purchase

We get it. Insurance can feel like another admin box to tick. But when things go wrong, it becomes your financial lifeline.

Sectional title insurance gives trustees peace of mind, owners security, and the entire scheme a fighting chance when disaster strikes. It’s not about playing it safe — it’s about being prepared.

TI Brokers partners with bodies corporate across South Africa to ensure they’re properly protected — not just legally compliant. We cut through the legal jargon, compare policies, and help trustees avoid expensive mistakes before they happen.

Final Thoughts

Being a trustee isn’t for the faint-hearted. You’re making big decisions — and sectional title insurance is one of the biggest.

Understanding what’s covered (and what’s not), keeping valuations current, and working with the right broker could be the difference between, “Don’t worry, we’re covered,” and “Uh-oh, we’re in trouble.”

Need help reviewing your scheme’s insurance? We’ve got your back — and your buildings.

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