Sectional Title & Body Corporate Insurance

Sectional Title Insurance is a legal requirement and a specialised policy that covers all the structures and common areas within a residential complex, such as apartments or townhouses. This includes everything from the buildings themselves to pools, walls, and gardens. The responsibility for securing this essential Body Corporate Insurance falls directly on the scheme’s trustees or, in some cases, the Homeowners Association Insurance managers, who act on behalf of all the owners. You can learn more in our Comprehensive Guide to Sectional Title Insurance.

This is a specialised form of property insurance that is legally required for all sectional title schemes in South Africa. It covers the shared assets of the community against major events like fire, storm damage, and public liability incidents. This ensures that if a disaster strikes, the financial burden of rebuilding does not fall on individual owners. For a complete overview of what is included, please refer to our Comprehensive Guide to Sectional Title Insurance.

While they are very similar, they apply to different types of schemes. Body Corporate Insurance is the legally required policy for a Sectional Title scheme registered under the Sectional Titles Act. Homeowners Association Insurance (or HOA insurance) covers the communal property and liability for a non-sectional title development, like a gated estate of freehold homes. Both serve the same primary function: to protect the collective interests of all the residents in the community.

Fidelity cover is a crucial component of your Body Corporate Insurance that protects against a very specific and damaging risk: financial dishonesty. It safeguards the community’s funds—the levies paid by all owners—from theft or fraudulent acts committed by trustees, managing agents, or anyone else entrusted with the scheme’s money. Without it, the community’s entire savings could be at risk, making it an absolutely essential protection for good governance.

Proactive risk management is key to keeping your premiums stable and protecting your property. The most effective way to reduce claims is by implementing a preventative maintenance schedule, especially for high-risk items like geysers and roofs. It is also vital to conduct regular, professional building valuations to ensure you are not underinsured and to use only qualified contractors for repairs. For a complete list of preventative strategies, please review our guide on How to Avoid Sectional Title Insurance Claims.