When additional cover is needed

[Updated: 31 July 2025]

The term “additional cover” often comes up in sectional title conversations, but it is easy to see why it causes confusion. Depending on the context, it can have three different meanings.

Under the Sectional Titles Schemes Management Act 8 of 2011 (STSMA), the body corporate must insure the buildings against fire and other prescribed risks (Regulation 3). But beyond that, there are several situations where additional cover may apply:

Individual owners’ additional policies

Section 14 of the STSMA allows owners to insure their sections under a separate policy. This is often done where the scheme’s policy has high excesses, or where certain risks are excluded, and the owner prefers to have cover for them.

Additional cover by the body corporate

In terms of PMR 23.(8), the body corporate may decide to take out cover for risks not prescribed by law but deemed necessary, for example, insuring golf carts in a golf estate or vehicles in a large scheme. This requires a special resolution.

Increased unit values (additional sums)

Owners who improve or upgrade their sections may need to adjust their insured values under PMR 23.(1)(b). These increases are reflected in the scheme’s schedule of replacement values (SRV), with the corresponding premium recovered from the owner.

In summary

“Additional cover” in the sectional title context is not a one-size-fits-all term. It can refer to owners taking out extra policies, the body corporate arranging special cover, or owners increasing the insured value of their sections. Understanding these distinctions ensures that both trustees and owners manage risk responsibly and avoid unexpected shortfalls in the event of a claim.