Is it possible for trustees of a body corporate to exclude or remove geyser cover?

[Updated: 30 October 2025]

The short answer

While trustees may wish to reduce costs by excluding certain geyser-related claims, such as wear and tear or maintenance, completely removing geyser cover would be legally and technically incorrect. The Sectional Titles Schemes Management Act 8 of 2011 and Regulation 3 require the body corporate to maintain prescribed insurance cover, which includes perils such as bursting, fire, and other sudden and unforeseen events.

The Prescribed Management Rule (PMR) 31 does, however, make it clear that the maintenance, repair, and replacement of worn or faulty geysers is for the owner’s account. Therefore, any excess insurers or even those that trustees themselves negotiate would still be very fair.  However, what’s important is that resultant damage from insured perils remains covered.

Why geyser cover still matters

We’ve seen geysers catch fire and, in some cases, those installed on roofs have been severely damaged during storm events. If geysers were simply removed from the policy, owners could find themselves exposed to significant losses that should have been insured.

Different insurers take different approaches to geyser cover. Some won’t deviate from their standard geyser structure, while others are more flexible, often depending on their reinsurance treaties and pricing models.

Shifts in excess trends

Before COVID-19, it became common for schemes to carry higher geyser excesses (for example, R3,000) to keep claims sustainable. However, post-COVID, with financial pressure on many owners, such excesses were often seen as too onerous.

More recently, the market has leaned toward lower or nil geyser excesses, where affordable on premium. The key for trustees is to work with their broker to find a geyser structure that best suits their ownership profile.

Example 1

A retirement-oriented scheme may prefer lower excesses (and slightly higher premiums) for predictability and affordability.

Example 2

A younger or more financially secure ownership base may prefer higher excesses in exchange for lower premiums, effectively self-insuring the first portion of the loss.

Sustainable solutions

The most effective way to reduce geyser-related costs and maintain low excess structures is through better geyser management. This includes:

• Managing claims proactively to avoid unnecessary replacements.
• Using call centre-based geyser management systems to control service providers and monitor claims behaviour.
• Installing stainless steel geysers, which offer greater longevity and fewer failures.

Our experience has shown that implementing a centralised geyser policy and upgrading to stainless steel replacements offers the best long-term solution. Insurers such as CIA, CIB, and HIC actively support this approach, often offering more favourable excess structures as an incentive.

Rather than removing the geyser cover altogether, it pays to focus on management, sustainability, and insurer collaboration. With the right support from trustees and the managing agent, a balanced, cost-effective geyser structure can be achieved that protects all owners.

Communication remains key

Whatever approach is adopted, trustees should:

• Keep all owners fully informed.
• Ensure that a clear geyser claims procedure is in place.
• Communicate the process to all owners, especially if lower excesses or other benefits depend on using approved procedures or suppliers.