Quick answer: Trustees should make sure the body corporate’s buildings and common property are insured appropriately, that replacement values are reviewed, and that liability, fidelity and trustee-related protections are considered.
The trustee’s practical insurance role
- Know what the policy covers and what it excludes.
- Keep the policy schedule and wording available for trustee meetings.
- Review insurance at renewal and when major changes happen at the scheme.
- Communicate clearly with owners when a claim, excess or valuation issue arises.
Buildings and common property
- The central concern is whether the buildings and common property are insured for an appropriate replacement value.
- Common property items such as walls, roofs, driveways, pumps, gates, electrical systems, lifts and security equipment should be checked against the schedule.
- Alterations, improvements and new installations should be declared where the policy requires it.
Liability and claims risks
- Public liability should be reviewed against the size and exposure of the scheme.
- Trustees should know how claims are reported, who approves repairs and what documents the insurer will need.
- Repeated claims should be discussed because they may lead to excess increases or conditions.
Fidelity and trustee-related cover
- Fidelity cover protects scheme money against theft or fraud risks.
- Trustee indemnity or similar protection should be discussed because trustees make decisions on behalf of the body corporate.
- Where a managing agent has cover, trustees should still ask whether the body corporate’s interest is properly protected.
Questions trustees should ask
- What is our current building sum insured and how was it calculated?
- When was the last replacement valuation done?
- What are the largest excesses on this policy?
- Do we have repeated claims that may affect renewal terms?
- Are trustees, committee members and scheme funds properly protected?
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
Do trustees personally arrange all claims?
Not always. A managing agent or broker may assist, but trustees should still understand the process and monitor material claims.
Should owners receive insurance information?
Owners should be given enough information to understand cover, claims procedures and excess implications where relevant.
Can a scheme change broker at renewal?
Yes, but trustees should follow proper internal decision-making and make sure there is no gap in cover.