The valuation is compiled remotely, based on the latest approved sectional title plans, public imagery and a telephonic interview with a representative of the body corporate.

For many bodies corporate, this time of year signals AGM season. As managing agents set up annual general meetings (AGM) with trustees and other body corporate members, it is important that all the required documents and figures are ready for this important gathering.

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.

When determining the insurance value of a building, it is important to consider all the relevant factors. The Africa Property & Construction Cost Guide 2018 – published by AECOM, the globally renowned infrastructure firm – is a very helpful guide when estimating a building’s replacement cost.

Portfolio managers are generally expected to obtain at least three quotations for the body corporate prior to appointing a valuations service provider. While this practice favours the idea of good governance, it is time-consuming and complicates the portfolio manager’s job tremendously.