Quick answer: Trustees should ensure the scheme’s insurance is reviewed, recorded and understandable. Practical obligations include checking sums insured, renewal terms, claims history, excesses, liability, fidelity cover and owner communication.
Quick answer
Managing agents often help with administration, but trustees should still understand the key insurance decisions and keep proper minutes or records.
Insurance decisions to record
- Policy schedule accepted
- Renewal options considered
- Building sum insured and valuation basis
- Important excesses and exclusions
- Claims history and insurer requirements
- Owner communication around claim processes
Why owner communication matters
Many disputes arise when owners do not understand what the body corporate policy covers, what the owner must insure separately and who may pay excesses.
Managing agent support
Managing agents can help gather policy schedules, claim records, trustee instructions and renewal documents, but the scheme should still receive clear advice from a broker.
When to escalate a review
Escalate the insurance review when there are repeated claims, large excess changes, valuation concerns, complaints from owners or unclear cover for common property.
Important: Insurance wording, excesses and claims handling differ between policies. Trustees should check the actual policy schedule, wording, scheme rules and renewal terms before making decisions.