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Insurance representation: What does a Letter of Authority mean?

Better the devil you know (than the devil you don’t). This old adage suggests that dealing with someone familiar is sometimes easier – while it may not be the best option – than dealing with someone you do not know that might be worse.

While this is sometimes true, other times it may result in a detrimental state.

When setting out to acquire something, some people take the time and make the effort to shop around to ensure their hard-earned cash is spent well. When it comes to community scheme property insurance, clients will often simply apply the above adage and not shop around.

The complexities of community scheme property insurance require the appointment of a suitably qualified financial advisor to help select the best possible insurance solution for the scheme in question, based on their individual needs and requirements. But, how do you know if you have the best available solution and how do you know you have the best available financial advisor?

Trustees – as appointed community scheme representatives – should ask their managing agent as well as themselves if they are entirely satisfied that their insurance arrangements and relationships are the very best solution for their community scheme. If the answer is no or maybe, alternative solutions should be considered.

By simply submitting a completed letter of authority to Addsure, the trustees or managing agents do not break existing relationships in favour of a new relationship with Addsure. This letter serves to empower Addsure – as market-leading specialist community scheme insurance advisors – to access the existing insurance information.

Following Addsure’s review of the existing insurance, we will obtain a number of alternative specialist property insurance quotations and present these to the trustees in the form of a comprehensive alternative insurance proposal. Every one of Addsure’s clients is presented with such a proposal every year prior to the annual renewal of their insurance.

Once the trustees have considered Addsure’s proposal and advice therein, they will be in a better position to decide if they would like to appoint Addsure as their official community scheme financial advisor. This is accomplished by simply signing a letter of appointment. After this, they will have access to the full array of advice and services that Addsure offers their valued clients.

In summary: do not be afraid to shop around and talk to other market place role players who may offer you far more than you are currently receiving. It is in your interest to keep your options open and compare services so you may make the best decision for your community scheme.


Addsure Letter of Authority – http://dev.addsure.co.za/wp-content/uploads/2013/10/Broker-Authority-13-.pdf

Addsure Letter of Appointment – http://dev.addsure.co.za/wp-content/uploads/2013/10/Broker-Appointment-13.pdf


Author: Bruce Gibson

Addsure are the leaders in sectional title insurance. Get fit and proper advice from advisors who understand sectional title. Contact us in:

Johannesburg (011) 704 3858;  Durban (031) 459 1795;  Cape Town (021) 551 5069