Quick answer: Owners often make changes to their units without realising those changes may affect the body corporate insurance risk. Trustees and managing agents should encourage owners to disclose renovations, business use, solar equipment, structural changes and other risk changes early.
Examples of information to disclose
- Renovations, extensions or changes to layout.
- Solar panels, inverters, batteries and generators.
- Business use or short-term letting.
- Changes to geysers, plumbing or electrical systems.
- Security gates, external fixtures or changes affecting common property.
- High-risk activities, storage or unusual occupancy.
Why disclosure matters
- Insurers rely on accurate risk information.
- Non-disclosure can create problems at claim stage.
- Replacement values may need adjustment after improvements.
- Trustees need proper records for insurance reviews and renewals.
Trustee process
- Create a simple disclosure form for owners.
- Ask owners to submit approvals and compliance certificates.
- Keep records with the managing agent.
- Refer material changes to the broker or insurer.
- Review disclosures before renewal.
Owner insurance still matters
- Body corporate insurance usually does not replace contents insurance.
- Owners should insure contents, personal items and improvements where needed.
- Tenants should arrange their own contents cover.
Need help reviewing the insurance position?
Lowensvlei Insurance Brokers assists body corporates, trustees and managing agents across the Western Cape with body corporate insurance reviews, renewal checks, water damage claims, public liability, fidelity cover and trustee insurance support. Request an insurance review.
Lowensvlei Insurance Brokers assists body corporates, trustees and managing agents across the Western Cape with body corporate insurance reviews, renewal checks, water damage claims, public liability, fidelity cover and trustee insurance support. Request an insurance review.
This guide is general information for trustees, owners and managing agents. It is not legal advice. Always check the scheme rules, policy wording and current legislation before making final decisions.