A Trustee’s Survival Guide: Don’t Panic (But Definitely Read This)

So, you’ve been voted in as a trustee. Congratulations! Or perhaps, condolences? Either way, you’ve just accepted one of the most important, and occasionally thankless, volunteer jobs in the property world. Your mission: keep your sectional title scheme running smoothly, protect owners’ investments, and avoid draining the reserve fund or setting off any metaphorical (or literal) fires.

Here’s your crash course and tips to help you along your journey:

1. Start With a Reality Check on Building Values

First things first—dig out that insurance policy and take a good, hard look at the insured amount. When was the last time anyone actually calculated what it would cost to rebuild your complex?

If the answer involves the words “a while ago” or “before load-shedding was a thing,” you’ve got some homework to do.

By law, buildings must be insured for full replacement value, and professional valuations should be done at least every three years. And no, your neighbour Dave who “knows a bit about property” doesn’t count. You need a professional, ideally a reputable team who know a little about sectional title and know how to crunch the numbers properly.

If your complex went up in flames tomorrow, there should be enough in the policy to rebuild it from the ground up. No pressure.

2. The Fidelity Cover Fiasco

Ah, fidelity insurance—the unsung hero of many schemes. This cover protects your scheme if someone with access to funds decides to get... creative with the finances.

Legally, the amount of fidelity cover must be voted on at a general meeting following the guidelines by CSOS that the minimum amount of cover must be the sum of the scheme's investments and reserves at the end of the last financial year, plus 25% of the current financial year's operational budget. Yes, it’s a tedious agenda item, but ignore it at your peril.

3. Get Proper Professional Guidance

Insurance isn’t something to DIY with a late-night Google search. You need a broker who specialises in sectional title schemes.

4. The Great Geyser Debate

Let’s talk about the elephant in the ceiling: geysers. They cause roughly 70% of all sectional title claims.

While owners are technically responsible for maintaining their own geysers, most body corporate policies include geyser cover. Sounds helpful—until your premiums start climbing faster than your water pressure.

You’ve got options:

• Increase geyser excesses to reduce premiums (if owners can afford it).

• Introduce a geyser plan, or other risk mitigating options - Your broker can guide you.

  
  

There’s no universal answer—choose what fits your complex’s demographics and claims record.

5. Master the Mysterious World of Excesses

Pop quiz: who pays the excess after a claim? If your answer is “uhhh…,” you’re in good company.

Check your scheme’s rules. By default, owners pay excesses for damage to their own sections unless the body corporate passes a special resolution stating otherwise.

Pro tip: consider a rule that makes the body corporate responsible for excesses arising from external causes—like hail, burst mains, or runaway trees.

Also, make sure your policy applies excesses per event, not per unit per claim. Nobody wants to play financial Sudoku after a storm.

6. Channel Your Inner Safety Inspector

You might not win popularity contests, but you will prevent accidents—and lawsuits.

Hire a professional to inspect the property for fire, safety, and compliance issues. Are handrails secure? Is the braai area built to code? Is the pool properly fenced?

And don’t underestimate the humble light bulb. Poor lighting, uneven paving, and slippery tiles are the classic recipe for expensive “slip and fall” claims. Fix them early to prevent any liability claims.

7. Investigate Past Claims (Detective Hat Required)

Ask your brokers for a full claims history. Review it carefully and cross-reference it with your trustee meeting minutes. Any unfamiliar claims? Missing paperwork? Get answers.

Patterns of frequent claims, especially for water damage or geysers, could indicate deeper issues. Discuss these with your broker to see where you can reduce risk (and premiums).

8. Get Closely Acquainted With Your Insurance Policy

Yes, it’s not exactly a page-turner—but reading your insurance policy is essential. Request both the policy schedule and the policy wording. Together, they tell you what’s covered, what’s not, and what might come back to bite you later.

Run through this quick checklist:

• Does the risk address match your actual property location? (You’d be amazed how often it doesn’t.)

• Are the cover amounts aligned with your valuation?

• Is it a sectional title-specific policy—or a generic building policy in disguise?

• What about burst pipes and geysers (the usual culprits)?

• Check the excesses—are they reasonable? Any percentage-based ones should cap at around R20,000.

• Liability cover should be no less than R10 million.

• Trustee indemnity cover? Non-negotiable. It protects you if you’re personally named in a lawsuit.

• And fidelity cover? Make sure it’s enough to cover more than just a fancy dinner out.

9. Get Everyone on the Same Page About Property Values

Distribute the latest replacement value schedule to all owners.

If owners have made upgrades, new kitchens, bathrooms, imported tiles, they need to request additional cover for their specific units. It’s better to sort it out now than after the marble vanity meets its watery end.

10. Communicate Like Lives Depend on It (Because They Might)

When disaster strikes, clear communication saves time, money, and sanity.

Create a one-page “Claims Procedure” cheat sheet. Include who to contact, when to contact them, and what to do in the first few minutes of an emergency.

Share emergency contact numbers (especially for 24-hour insurer hotlines) widely. It’s much easier to find them on a fridge magnet than at 3 AM during a flood.

Final Thoughts: The Art of Not Panicking

Being a trustee doesn’t require a law degree or a crystal ball, just diligence, curiosity, and a work ethics..

Stay proactive, ask questions, document everything, and remember: insurance isn’t boring paperwork, it’s the safety net that keeps your complex afloat when Murphy’s Law inevitably makes an appearance.