Trustees need to know this!

Did you know that many bodies corporate lose money on insurance premiums by skimping on the valuation? In some cases, the reason might be that the body corporate has not met its obligation to obtain the mandatory 3-yearly replacement cost valuation – this usually leads to over-escalating the sum insured by applying the same “on-the-safe-side” escalation rate of 10% year after year.

The true price of a cheap insurance valuation

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.