3 reasons why you need a trusted insurer

Being on a board of trustees comes with a seemingly never-ending list of things to do. From managing the day-to-day running of the estate to maintaining the common property, there’s more than enough to keep you busy. Ensuring that the estate is adequately insured is undoubtedly an item on every trustee’s agenda, but here are 3 reasons why finding a trusted insurer should be moved to the very top of the to-do list.

1. A trusted insurer covers the estate against vehicle damage

Vehicle damage within the estate’s common areas is a pervasive risk for Homeowners’ Associations. This is because of the sheer volume of cars in and around estates.

One of the most common places where it occurs is in access controlled areas. Whether it’s a visitor accidentally bumping into a boom gate, a resident misjudging the timing while driving through an automatic gate, or even a truck driver underestimating the height restrictions, adequate insurance could protect the estate against the damage.

Another common area for concern is the boundary of the estate. The right insurer should offer trustees insurance that covers vehicle damage to boundary walls.

2. Bad weather isn’t in the your control, but you can control how you insure for it

We’re all familiar with the saying “Location, location, location”, but this can be a double-edged sword for Homeowners’ Associations. What could be seen as the perfect location for homeowners because of the proximity to a beautiful river or because of striking mountainside views can make the estate privy to more weather-related risks.

A trusted insurer could cover the common areas against rain, wind, hail and lightning damage, as well as power surges. Trustees should also be able to cover the estate’s common property against natural disasters like floods and fires. You need only cast your mind back to the devastating wildfires in the Western Cape in 2020 to see how important this cover can be.

3. A trusted insurer could provide a full risk survey

Picking an insurer that does comprehensive risk assessments will give trustees the peace of mind of knowing that they have complete cover.

So, what makes a risk survey comprehensive? According to OUTsurance Actuarial Manager, Carla Benadé, “Risk assessments should include buildings, fixtures, contents and liability insurance. This allows the insurer to get a full picture of how the estate runs, and what the Homeowners’ Association needs.

While this ensures that estates aren’t underinsured, the same goes for ensuring they aren’t over-insured. Risk surveys help insurers to match premiums to a specific risk profile. This means that they don’t subsidise a lower risk client’s premiums based on higher risk clients”.

If you’re ready to assess whether you’re adequately insured, you can get an obligation-free OUTsurance quote by clicking here or calling 08 600 60 000. You can even request the services of a dedicated OUTsurance Broker, who would become your single point of contact.

OUTsurance is a licensed insurer and FSP.Ts, Cs and standard rates apply.