Published: 18 June 2026

Most owners assume that because the Body Corporate has insurance, everything in their unit is insured. Unfortunately, this is not the case.
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The Body Corporate's insurance policy primarily covers the buildings and certain fixtures and fittings, while owners remain responsible for their household contents, certain maintenance obligations, excess payments, and any non-standard improvements that have not been declared to the insurer.

1. What Does the Body Corporate Insurance Cover?

In general, the Body Corporate insurance policy covers damage to the structure of the building and its fixtures resulting from an insured, sudden and unforeseen event such as:

• Fire damage;
• Storm, wind and hail damage;
• Lightning damage;
• Certain Water damage claims;
• Impact damage; and
• Geysers (subject to policy limits and conditions).

The Body Corporate insurance policy generally covers:

• The structure of the building.
• Walls, ceilings and roofs.
• Built-in cupboards.
• Doors and standard windows.
• Standard fixtures and fittings.

​A simple guideline often used is that if you turned your unit “upside down”, anything that remained attached to the building would generally be regarded as part of the insured structure, subject to any policy definitions, exclusions and declarations relating to non-standard improvements

Examples may include:

• Built-in cupboards;
• Baths, basins and toilets;
• Kitchen cupboards and fitted countertops;
• Ceiling boards and cornices;
• Internal doors;
• Standard floor finishes; and
• Permanently installed fixtures forming part of the building.

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2. What is not Covered?

Owners are often surprised to discover that the Body Corporate insurance policy does not insure their personal possessions.

Items generally not covered include:

• Furniture;
• Televisions and electronic equipment;
• Clothing;
•  Loose carpets and rugs;
• Appliances;
• Bedding and household contents; and
• Other movable personal belongings.

The policy also does not cover maintenance issues, wear and tear, gradual deterioration, damp, defective workmanship or damage arising from a lack of maintenance.

A slow leaking pipe that has caused damage over an extended period is unlikely to be insured.
 

3. Owners May Obtain Additional Insurance

Many owners are unaware that, even where the Body Corporate has arranged insurance for the buildings, they remain entitled to obtain their own insurance cover.

The legislation specifically provides that, apart from the insurance effected by the Body Corporate, an owner may obtain insurance in respect of any damage to his or her section arising from risks that are not covered by the Body Corporate policy.

This means that owners are free to obtain additional insurance for:
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• Household contents and personal possessions;
• Portable items;
• Improvements and alterations;
• Personal liability;
• Accidental damage; and
• Any other risks they wish to insure against.

The legislation does not limit an owner's right to obtain insurance over and above the Body Corporate's cover.

Owners should therefore review their personal circumstances and consider whether the Body Corporate's policy adequately addresses their needs.


4. Have You Made Improvements to Your Unit?

Many owners have upgraded their units over the years without considering whether those improvements have been declared to the insurer.

Examples of non-standard improvements may include:

• Solar installations;
• Solar geysers and heat pumps;
• Air-conditioning units;
• Wooden or laminate flooring;
• Alarm systems;
• Garage door motors;
• Marble or granite countertops;
• Carports;
• Wendy houses; and
• Other approved improvements.

The replacement values reflected on the Body Corporate insurance policy generally provide cover for standard finishes. If additional improvements have not been declared and endorsed on the policy schedule, they may not be insured.

Owners should review their units regularly and ensure that any improvements, alterations, additions or non-standard installations are disclosed to the insurer so that the appropriate insurance cover can be considered.


5. Can the Insurance Value of My Unit Be Increased?

The replacement values reflected on the Body Corporate's insurance schedule are based on the values declared to the insurer & approved by the owners at the Annual General Meeting.

However, an owner may at any time request that the replacement value specified for his or her section or exclusive use area be increased by providing written notice to the Body Corporate.

Where an owner has made significant upgrades or improvements to a section, increasing the insured value may be necessary to ensure that those improvements are adequately protected.

Owners should note that any additional premium resulting from the increased value will be for the owner's account.
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Replacement value is the amount required to rebuild or replace a unit and its insured fixtures and fittings at current construction costs following a total loss. It is not the same as the market value or selling price of the property.


6. Geysers - Who Is Responsible?

Geyser claims often create confusion.

While the geyser itself is insured under the Body Corporate's insurance policy legislation places the responsibility for maintaining, repairing and replacing the hot water installation serving a section on the owner.

Policy limits may also apply to geyser replacements and excesses are usually payable.

Owners should also note that there is a difference between a sudden burst geyser and a maintenance issue. Insurance is intended to respond to sudden and unforeseen events and not normal wear and tear.

Maintenance items such as elements and valves may only be covered where the policy specifically provides for this.


7. Are the Pipes Covered?

One of the most common questions received following a water leak is whether the pipe itself is insured.
The answer depends on the circumstances.

Not Covered

• Old deteriorated pipe.
• Slow leak over time.
• Wear and tear.

Usually Covered

• Sudden and unforeseen bursting of a pipe that was otherwise in reasonable condition.
• Consequential damage arising from the insured event, subject to the terms and conditions of the policy.

8. Who Pays the Excess?

The excess is the first amount payable towards a claim before the insurer contributes to the loss or damage. The excess may be payable by the owner or the Body Corporate. Excess amounts vary depending on the type of claim and the terms of the insurance policy.
 
In terms of the management rules, owners are generally responsible for excesses relating to damage to parts of the building that they are responsible for maintaining.

This often includes:

• Damage occurring within their section;
• Geyser-related & hot water related claims;
• Damage resulting from owner-maintained installations; and
• Certain window and door claims. E.g. Broken windows –– windows broken due to storm damage, wind, or by the owner and his/her occupant

Please refer to the policy schedule for all excesses and / or limits as this differs from policy to policy where items have been specifically specified.
 

The Body Corporate is generally responsible for:

• Common property claims.
• Common property infrastructure failures.
• Claims where the Body Corporate has a maintenance responsibility.

Where damage originates from common property infrastructure that the Body Corporate is responsible for maintaining and has failed to do so, the Body Corporate may be responsible for the excess. This would generally not apply to an insured event such as storm damage, which falls outside of the Body Corporate's control.

Every claim must therefore be considered on its own facts.


9. What Should Owners Consider Insuring Themselves? 

Owners should consider:

• Household contents insurance.
• Portable possessions cover.
• Additional cover for non-standard improvements.
• Personal liability cover.
• Alternative accommodation cover where appropriate.

10. Before Submitting a Claim

Owners should take all reasonable steps to minimise further damage and should report claims as soon as possible – most policies have a 30-day cut off claims policy.

Where emergency repairs are required, such as a burst geyser or severe roof leak, steps should be taken immediately to prevent further loss.

No repairs to resulting damage such as repair work to ceilings or flooring may proceed without the approval from the insurers and the go ahead from the broker. Failure to observe the above may prejudice the claim whereby the same may become null and void.

If in an emergency the work is undertaken by the owner, photographs should be taken, damaged items retained where possible, and claims reported promptly through the broker or managing agent as soon as possible.

Owners must note that an emergency claim pertains only to instances where there is a burst geyser or a severe roof leak, all other claims need to be dealt with during office hours.

Key points:

• Report claims promptly.
• Keep damaged items for inspection.
• Take photographs.
• Prevent further damage.
• Where applicable, obtain a SAPS case number and any available third-party details.
• Do not carry out repairs without insurer approval where required.

 
For claims involving theft, burglary, malicious damage or damage caused by a third party, owners should obtain a SAPS case number and retain any information that may assist the insurer, such as photographs, witness details, vehicle registration numbers or contact details of the responsible party.


11. Conclusion

Insurance should not only become a topic of discussion after damage has occurred.

The Body Corporate's insurance policy is designed to protect the buildings within the scheme, not necessarily everything inside your home. Understanding what is covered, what is excluded, and what additional insurance may be required can prevent costly surprises when a claim arises.

If you have made improvements to your unit or are uncertain whether certain items are insured, it is always advisable to request a copy of the Policy & Schedule of Replacement Values and discuss your specific circumstances with the scheme's insurance broker.

A quick review today could prevent a costly surprise tomorrow.

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