Naturally, price plays a significant part when trustees appoint a valuer but experience and assurance are not always considered in equal measure. The unfortunate reality is that insurance valuations are susceptible to human error as they rely on the valuer’s personal experience and judgement.

Every three years, when the mandatory insurance valuation is due for bodies corporate, trustees and managing agents set out to collect and compare quotations from different service providers. Some trustees seek to make it a painless exercise by appointing the valuer recommended by the managing agent, others appoint the valuer offering the cheapest quote without considering any other factors.

If you believe the municipal valuer has over-valued your property, you should contest this; if justified, the valuer will be amended. If an objection is not lodged during the advertised objection period there is little prospect of having the municipal valuation amended, barring special circumstances.

The properties are compared by erf size, number of bedrooms, number of bathrooms and quality class. Needless to say, this automated mass valuation method cannot take into account factors that require a keen (human) eye, such as state of repair, specific design, etc. This often leaves the accuracy of such valuations in doubt.

The trustees of a body corporate must present a Schedule of Replacement Values (SRV) at the AGM for approval. It should reflect the replacement cost of each section and its undivided share in the common property.