Insurance Valuations for Sectional Title Schemes

Preventative Maintenance Requires A Paradigm Shift

Insurance Valuations for Sectional Title Schemes

Insurance valuations are one of the first things we commission every three years when we are elected as a trustee in a sectional title scheme. Our annual AGM pack includes a mandatory item to consider the insurance policy and broker. It comes as no surprise then to learn that our duty is prescribed in law and is a mandatory requirement.

When I first got involved with the building maintenance industry in the late 90’s, it never crossed my mind that I would become involved in developing and exploring more holistic solutions for property asset management. In the beginning it was all about paint and waterproofing. Incredible how things change, and the journey evolves.

Collaborative solutions

From around 2005, it became apparent that our message to the market had to be one of
collaboration. The way we viewed management of properties, and specifically the maintenance of our assets, was fast becoming a very a specialized field. The solution therefore required a number of moving parts and skillsets.

I have always maintained that it is best to keep the solutions real; and to stick to your core function and skill set. We simply cannot be an expert in everything. Hence the fact that I have always maintained:

  • that a property requires a specialist broker,and
  • should seek to get an insurance valuer, or
  • required expert to attend to a full replacement cost valuation.

Partnerships with specialists

When we developed the Curasure Engineered Solutions division (as part of our brand to supplement our core functions), it was always meant to serve as a partner with other specialists in the industry. This way we could facilitate a whole host of solutions. It also meant that we could also ensure a central control and contact point for our valued clients. A simplified solution-based system is key to managing properties. Having too many moving parts and no change management can be detrimental to a building’s future. It requires only a few key role-players. Our solution was therefore aimed at providing continuity and a central management point, as we partnered with a variety of experts in their industries.

Demand for Insurance valuations

Over the last couple years, we have been inundated with requests to assist with full replacement cost insurance valuations. I am pleased to announce that we have partnered with professional quantity surveyors. Their role is to diligently prepare and supply an insurance valuation report for our clients. Although a report prepared by a valuer is perfectly suitable, we felt that we needed to take our involvement and service offering to the next level by including a professional quantity surveyor. This way we can engage our client and provide them with the actual costs at date of valuation. The report is prepared by an industry professional that is fully aligned with the current cost of demolition and rebuilding valuable assets.

I look forward to partnering with our clients to add value and ensure long-term savings and success stories.

Frederik Nel