LEGISLATIVE REQUIREMENTS FOR COMMUNITY SCHEMES PART 1

Since the introduction of the Fidelity requirement for Community Schemes in 2016 most brokers and managing agents have in accordance with the legislation extended their scheme’s Fidelity cover to include the insurable person. 

We do however, still come across schemes which have not updated their fidelity cover from the free standard cover of R50 000 which is included in our Community Schemes policy wording.  This cover was offered to schemes prior to the changes in legislation and does not comply with the new Act’s requirements as it specifically excludes Managing Agents.

It is therefore critical to ensure that all community schemes incl. body corporate, homeowners associations, share blocks and retirement villages have the extended Fidelity & Computer Crime Cover in place which extends to cover the insurable person. 

In the next newsletter we will continue looking at the legislative requirements for community schemes