1. Start with the current policy schedule
The insurance schedule is the easiest place to start. It shows the sections of cover, sums insured, excesses and important extensions that apply to the body corporate.
- Check the buildings sum insured
- Check public liability limits
- Check trustee indemnity and fidelity cover
- Check geyser and water-damage excesses
- Check special conditions or endorsements
2. Review the building replacement value
The body corporate should make sure the building sum insured remains realistic. If the insured value is too low, the scheme may face underinsurance problems after a major claim.
- Was a recent replacement valuation done?
- Does the insured value include all buildings and common property structures?
- Have building-cost increases been considered?
- Are boundary walls, gates, paving and shared infrastructure considered?
3. Compare excesses, not only premiums
A cheaper premium may come with higher or less practical excesses. Trustees should understand how excesses will affect owners and the scheme during a claim.
- What is the standard excess?
- Is there a separate geyser excess?
- Is there a water-damage excess?
- Are storm, subsidence or electrical excesses different?
- Who will pay the excess in common claim scenarios?
4. Review claims history
Claims history often shows where the scheme’s real risks are. Repeated geyser claims, leaks, storm damage or electrical losses should be discussed before renewal.
- Which claims occurred in the last year?
- Were claims paid, reduced or rejected?
- Were owners unhappy with the outcome?
- Are there repeated problems that require maintenance action?
- Did any claim reveal a gap in the policy or process?
5. Confirm public liability and trustee-related cover
The body corporate carries risks connected to common property. Trustees should understand liability cover before renewal is approved.
- What public liability limit applies?
- Is trustee indemnity included?
- Are there exclusions trustees should understand?
- Does the cover match the scheme’s facilities and risk profile?
6. Check fidelity cover for scheme funds
Fidelity cover is important because body corporates hold and manage funds. Trustees should confirm the limit and wording before renewal.
- Is fidelity cover included?
- What limit applies?
- Who handles scheme funds?
- Are financial controls documented?
- Are managing agent banking processes clear?
7. Prepare AGM insurance information
Insurance decisions are often discussed at the AGM. Trustees should be ready to explain the renewal position in plain language.
- Current insurance schedule
- Renewal terms or comparison
- Replacement valuation if available
- Claims history summary
- Main excesses and important conditions
- Questions trustees still need answered
8. Ask for a practical review before approving renewal
A review helps trustees understand whether the renewal is suitable and what questions should be asked before final approval. This is especially useful where premiums, excesses or claims patterns have changed.
- Review the policy structure
- Check practical claim concerns
- Highlight underinsurance risk
- Prepare better questions for insurers
- Improve trustee and owner communication