Quick answer: Before renewal, trustees should check the replacement value, policy schedule, geyser and water damage terms, excesses, public liability, fidelity cover, trustee indemnity, claims history and any conditions imposed by the insurer.
1. Confirm the replacement value
- Check whether the buildings are insured for a realistic reinstatement or replacement value.
- Ask when the last professional valuation was done and whether building cost inflation, common property improvements and new additions have been considered.
- Do not only roll over the previous sum insured without checking whether it still makes sense.
2. Review excesses and special conditions
- Pay attention to water damage, geyser, storm, power surge, subsidence and landslip excesses.
- Check whether any higher excess applies because of repeated claims or poor maintenance.
- Make sure trustees understand who may practically be affected when an excess is charged.
3. Check the sections and common property
- Confirm that the policy covers the scheme buildings and common property correctly.
- Check boundary walls, gate motors, lifts, pumps, security systems, solar equipment, boreholes, irrigation and outbuildings where relevant.
- Make sure improvements or alterations are declared where needed.
4. Check liability and trustee protection
- Review public liability limits.
- Check whether trustee indemnity or directors and officers style cover is included or separately arranged.
- Confirm that the policy wording matches the actual role and risks of the trustees.
5. Check fidelity cover
- Confirm that fidelity cover is in place for scheme funds, reserves and operational money.
- Ask whether the managing agent’s own policy is being relied on and whether the body corporate’s interest is properly noted.
- Make sure the level of cover is reviewed at each AGM or renewal cycle.
6. Review claims history
- Ask for a claims experience summary.
- Identify repeated geyser, water ingress, gate motor, roof or security claims.
- Use the renewal process to decide whether maintenance action is needed to keep cover sustainable.
Documents to send for a review
- Current policy schedule and wording.
- Latest replacement valuation or insured value basis.
- Latest financials or budget, especially for fidelity cover considerations.
- Claims history and current unresolved claims.
- Conduct rules and any special owner/resident rules that could affect claims.
This page is general information for trustees and managing agents. It is not legal advice and does not replace the policy wording, scheme rules or professional advice for a specific claim or renewal.
Frequently asked questions
How early should trustees start the renewal review?
Ideally at least 45 to 60 days before renewal so there is enough time to review the schedule, ask questions and compare terms.
Should trustees only compare premium?
No. The lowest premium is not necessarily the best outcome if the excesses, exclusions, sums insured or claim terms are weaker.
Can LV Insurance review an existing policy?
Yes. We can review the current schedule, wording, excess structure and claims experience and prepare practical questions for trustees to consider.