Insurance Valuations Now Required by Law
Long in the making, the new Sectional Title Schemes Management Regulations became operational on October 7th, 2016. One of the notable innovations concerns Body Corporate Insurance, requiring that
“a body corporate must obtain a replacement valuation of all buildings and improvements that it must insure at least every three years (…)” (regulation no. 23.3).
Regulation no. 23.4 further states that “a body corporate must prepare for each annual general meeting schedules showing estimates of
(a) the replacement value of the buildings and all improvements to the common property and
(b) the replacement value of each unit, excluding the member’s interest in the land included in the scheme (…) “.
When budgeting for a Replacement Cost Valuation, it is recommended that the Body Corporate ensures that the prospective valuer –
• is certified and registered with the Council for the Property Valuers Profession
• has specialised sectional title knowledge and experience
• carries adequate Professional Indemnity cover.
Mirfin Newsletter 10.10.2016