Sectional Title insurance, in terms of the Sectional Title Schemes Management Act (STSMA), is a legal requirement. A building must be comprehensively insured, ensuring all insured perils are covered. In the event that an insured event, such as fire or storm damage, may cause serious structural damage, the insurance cover will come into effect. Covering the cost of the damage to the residential and common property of the building. Insurance cover will also protect the building in the event of a burst geyser or pipe, torrential storms, fire, earthquakes, and flooding.

According to the Sectional Title Schemes Management Act, a body corporate is required to conduct a replacement valuation every 3 years. A replacement valuation ensures that a building is adequately insured. 
In the event that the building needs to be reconstructed due to a total loss or damage, the valuation would have taken into account costs for demolition, rubble removal, building costs, professional services, and inflation costs.

Comprehensive insurance cover offers the following:

• Geyser repairs or replacement
• Fidelity and/or liability cover

The insured events, depending on which insurance company you are with, will detail what is covered in their policy wording and breakdown the cover in the policy schedule.
Depending on the insurance provider you have, the insurance policy schedule will clearly outline which events can be covered. 

Fidelity insurance covers the risk of funds belonging to the Body Corporate sustained as a result of any act of fraud or dishonesty committed by a trustee, managing agent, employee or other agent of the Body Corporate. 
Body Corporates require fidelity insurance as it manages large funds designated to funds.