Understanding Community Living Insurance vs Personal Insurance in a Scheme.

Many owners mistakenly believe that community living insurance covers all their insurance needs. This misconception can lead to unexpected out-of-pocket costs.

What Community Living (Body Corporate) Insurance Usually Covers:

• The structure and common property of the scheme, including buildings, roofs, walls, floors, fitted cupboards, security fixtures, and fitted appliances (like geysers and stoves).
• Public liability insurance protects the scheme against third-party injury or property damage on common property.
• Trustee indemnity insurance which safeguards trustees against personal liability claims.
• Fidelity cover protects the scheme against theft or fraud by those in positions of trust.

What It Does NOT Cover – Owner’s Responsibility:

• Household contents (moveable items) like furniture, appliances, electronics, and personal belongings.
• Personal liability for damages inside your unit
• Vehicles, personal accident, or health insurance.

Important Considerations:

• Insurance only covers sudden, unforeseen events—not wear and tear or gradual deterioration.
• Policies differ widely – review your scheme’s policy carefully to ensure adequate cover, especially with additions like solar panels or inverters.
• Trustees have a duty to enforce conduct rules around fire risks (e.g., fireplaces, braais) to avoid claim repudiation.
• Replacement valuations by an independent valuator of buildings are legally required at least every three years to prevent under-insurance.
• Owners are liable for insurance excesses.
• Owners will be liable to pay an extra premium for improvements made to their units (including but not limited to solar, air-conditioning units).

At ANGOR, we support schemes in maintaining compliant, comprehensive Community Living insurance and connect Scheme Executives with trusted brokers who can assist in navigating the policy details.

Any additional premiums related to specific units or improvements are billed directly to owners via their levy statements, ensuring transparency and ease of administration.