Insurance Valuations, Claims Strategy and Emergency Repairs

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Posted: February 3, 2026

Insurance Valuations, Claims Strategy & Emergency Repairs

Insurance in community schemes is not just about having a policy, it’s about keeping it accurate, using it wisely, and knowing how to act when emergencies happen. Valuations, claims management, and emergency repair protocols are all critical to ensuring owners are protected and costs are controlled.

Valuation Requirements Under the STSMA

The Sectional Titles Schemes Management Act (STSMA) requires the Body Corporate to obtain a replacement cost valuation of all buildings at least every three years.
This valuation:

  • Establishes the correct sum insured
  • Helps avoid underinsurance, where payouts are reduced due to the averaging clause
  • Helps avoid over insurance through industry average annual escalations
  • Must be performed by a qualified valuer

Best practice: Review the insured value annually, especially after major upgrades.

Understanding Underinsurance and Averaging

If the insured value is less than the true replacement cost:

  • The insurer applies the averaging clause, reducing claim payouts in proportion to the shortfall.
  • For example: If insured for 80% of replacement value, the payout is reduced by 20%, even for partial claims.

Avoiding underinsurance is critical to financial stability.

Claims Strategy – When and How to Claim

A strategic approach to claims can:

  • Keep your loss ratio low, helping prevent premium increases
  • Ensure valid claims are paid quickly

Best practices:

  • Only claim for losses above the policy excess
  • Avoid multiple small claims within a short period
  • Maintain proper maintenance to prevent damage that would be excluded

Emergency Repairs – Acting Quickly and Legally

Emergencies such as burst pipes, storm damage, or electrical faults require immediate action.
Trustees can:

  • Approve emergency repairs without prior member approval under PMR 29(1)(b)
  • Use trusted, pre-approved contractors for faster response
  • Notify the insurer as soon as possible

Document the event with:

  • Photos of damage
  • Contractor reports
  • Copies of all invoices and correspondence

Maintenance Planning to Reduce Claims

Preventive maintenance reduces the risk of emergencies and claimable events:

  • Regular roof inspections
  • Clearing gutters before rainy seasons
  • Servicing electrical systems
  • Checking geysers and pressure valves

Accurate valuations, a smart claims strategy, and well-handled emergency repairs are key to protecting both property and financial resources in community schemes. Trustees who take a proactive approach minimise risk, control premiums, and maintain owner confidence.

ANGOR Property Specialists assists schemes with professional valuations, claim coordination, and maintenance planning to safeguard assets and budgets.

 

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