Many property owners in South Africa live in sectional title schemes such as complexes, estates, and apartment buildings. In these developments, the body corporate plays an important role in managing the property and ensuring that adequate insurance cover is in place to protect all owners.

Under the Sectional Titles Schemes Management Act, every body corporate is required to maintain insurance that protects the common property and the buildings within the scheme.

What Does Body Corporate Insurance Cover?

Body corporate insurance generally covers the structure of the buildings and shared areas (also knwon as common Property), including:

• The main building structures
• Roofs, walls, and permanent fixtures
• Lifts and stairwells
• Parking areas and communal facilities
• Boundary walls, gates, and security infrastructure

This insurance ensures that if damage occurs due to events such as fire, storms, or other insured risks, the cost of repairs or rebuilding can be covered without placing a financial burden on individual owners.

What Owners Still Need to Insure

While the body corporate covers the building structure, individual owners remain responsible for their personal insurance needs, including:

• Household contents
• Portable items such as laptops and phones
• Personal liability cover
• Additional internal improvements or renovations

Many owners mistakenly believe the body corporate insurance covers everything inside their unit, which is not always the case.

The Importance of Correct Building Valuations

One of the biggest risks for body corporates is underinsurance. Building replacement costs can change significantly over time due to rising construction costs, labour, and materials.

Regular professional valuations help ensure that the insured value reflects the true cost to rebuild the property if a major loss occurs.

Managing Risk in Sectional Title Schemes

Apart from insurance, body corporates should also focus on risk management, including:

• Regular maintenance of buildings and infrastructure
• Fire prevention measures and safety compliance
• Security systems and access control
• Proper record keeping and governance by trustees

Strong risk management helps protect the scheme while also supporting more stable insurance premiums.

Professional Guidance Matters

Insurance for sectional title schemes can be complex, and every property has unique risks. Professional advice ensures that the body corporate and individual owners have the correct cover in place.

At Altara, we assist clients with understanding their insurance responsibilities and ensuring that both body corporate and personal cover work together effectively.