Check your sectional title policy

[Updated: 12 August 2025]

Sectional title insurance policies are short-term contracts, renewed annually. When reviewing your cover, three core areas should always be addressed, i.e. buildings, liability, and fidelity.

In addition, trustees may decide to extend the cover to include benefits such as geyser buyback, legal cover, extended liability, or enhanced subsidence and landslip protection.

After the renewal process, which should always be accompanied by written advice, the updated policy schedule is issued. A typical sectional title policy pack consists of:

• Policy wording – usually a standard, pre-printed document that seldom changes from year to year.
• Policy schedule – reflecting the current cover, premiums, and endorsements.
• Schedule of replacement values (SRV) endorsement – detailing each section’s replacement value.

While the wording remains largely static, the policy schedule and SRV endorsement require careful checking upon receipt.

Key checks for trustees (often delegated to the managing agent)

• Risk address – Confirm that the address listed is correct.
• Sum insured – Is it in line with the latest professional valuation, or has it simply been escalated without review?
• Rate and premium – Do these match the renewal invitation or negotiated terms?
• Policy type – Is it correctly issued as a sectional title policy (or, where applicable, a homeowners’ association policy)?
• Mixed use – If the scheme includes both commercial and residential units, does the cover cater for both?
• Burst geysers and burst pipes – Are these included?
• Excesses – Are they reasonable, and have any changes been noted?
• Liability cover – Is there at least R10 million in property owners’ liability cover? (R50 million is preferable.)
• Liability wording – If the policy has changed insurers, have you considered the implications of occurrence-basis versus claims-made wording?
• Trustee indemnity cover – Has this been included?
• Fidelity cover – Is it included and compliant with CSOS Regulation 15?
• Schedule of replacement values (SRV) – Does it match the body corporate’s formally adopted SRV?
• SRV compliance – Is it prepared in line with PMR 23(4) and not merely copied from the policy schedule?
• Endorsements, conditions, and exclusions – Are there any new or onerous terms?

Your sectional title insurance advisor should guide you through this process and alert you to any significant changes. Ultimately, however, the responsibility for verifying the policy rests with the trustees.