A sectional title insurance review is a structured process that helps trustees assess whether their scheme’s insurance is correctly set up, sustainable over time, and aligned with real risks, not just whether the premium is competitive.
For many trustees, insurance only becomes a focus after a major claim, a premium increase, or a dispute. By then, it is often too late to fix structural issues.
A proactive review helps trustees understand whether their scheme is properly protected before problems arise.
What does a sectional title insurance review look at?
A trustee-level insurance review typically considers:
- Whether the structure of the cover matches the scheme’s actual risks
- How risks such as geysers, storm damage, liability and fidelity are addressed
- How the scheme’s claims history is influencing premiums and terms
- Whether cover aligns with governance, regulatory and legal requirements
This goes beyond price comparison and focuses on suitability, resilience and long-term sustainability.
Why is an insurance review important for trustees?
Trustees have a fiduciary responsibility to act in the best interests of the body corporate.
A structured insurance review helps trustees:
- Reduce the risk of underinsurance and special levies
- Avoid repeated or preventable claims
- Understand why premiums increase, and how to influence that trend
- Improve decision-making with confidence
- Ensure compliance with relevant legislation and rules
In short, this review guides trustees with mitigation suggestions and a check that the policy is correctly structured for the important risk aspects, rather than just a renewal exercise.
What information is helpful for an insurance review?
None of the following is required, but when available, it allows advice to be more accurate and meaningful:
- Latest building replacement valuation
- Sectional plan
- Conduct and management rules (where exclusive use areas apply)
- Schedule of Replacement Values (SRV) – if done
- Current policy schedule ( Any endorsements or special conditions?)
- Financial statements and budget (if fidelity or governance is being reviewed)
- AGM pack (if easier)
- Recent claims history
- Known recurring issues (for example, geysers, flooding, storm exposure)
Trustees should not feel pressured to gather all of this before starting – a review can begin with far less. Hence, the letter of authority allows the broker to obtain policy information and, most importantly, claims history from the insurer.
Who is this type of review most helpful for?
This approach is most effective for residential sectional title schemes that:
- Are primarily residential (not mixed-use or inner-city commercial)
- Have a stable owner and tenant profile
- Value long-term sustainability over short-term savings
- View insurance as part of good governance
- It also works best where trustees, managing agents and brokers are aligned around transparency and proactive risk management.
From routine policy renewal to responsible broker advice and trusteeship on renewal
When insurance is treated purely as an annual renewal transaction, trustees are forced into reactive decision-making.
When community scheme insurance is treated professionally and with due care as part of stewardship of the assets of the community, trustees and owners benefit from:
- Greater clarity
- Fewer surprises after claims
- More stable premiums over time
- Stronger alignment between risk, maintenance and insurance
- That is what a good insurance review supports.
Final thought
A well-run scheme deserves insurance that supports it, not undermines it. This often only becomes clear after large-scale events, such as the collapse of walls due to non-compliance, poor workmanship (particularly with roofing), or a long-term focus on securing the cheapest premium at all costs. Where a scheme consistently carries a high claims ratio and mitigation efforts are limited, insurers are understandably reluctant to respond to losses that could reasonably have been prevented.
Trustees deserve advice that respects the responsibility they carry.
A sectional title insurance review is not about changing insurers; it is about ensuring the structure is right.
Author: Mike Addison
Addsure is a leading sectional title insurance broker. Get fit and proper advice from advisors who understand sectional title.