Governance failures and insurance shortcomings within sectional title schemes are becoming increasingly common, with disputes referred to the Community Schemes Ombud Service continuing to rise. For trustees and owners alike, the financial and legal consequences of inadequate or inappropriate insurance can be significant.

In this edition of InShort, we highlight why body corporate insurance is a core governance responsibility, not a box ticking exercise. The article outlines common risk gaps arising from regulatory non compliance, underinsurance and trustee mismanagement, and underscores the vital role advisers play in helping schemes secure appropriate cover and avoid costly shortfalls.

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Estimated reading time: 3 minutes