One of the things I’ve come to appreciate over the years in sectional title insurance is just how different this space really is.

On the surface, insurance can seem relatively straightforward. A scheme takes out cover, premiums are paid each month and, if something goes wrong, a claim is submitted. That’s often how many trustees understandably view it.

But the reality is that sectional title insurance is rarely that simple.

In fact, many of the challenges I see in body corporates don’t stem from major disasters or unusual claims. More often than not, they come from misunderstandings, assumptions or gaps in advice that only become obvious when a problem arises.

It might be a claim that is unexpectedly declined, a building that turns out to be significantly underinsured, or trustees discovering that what they thought was covered actually wasn’t.

And unfortunately, by that point, decisions made months — sometimes years — earlier suddenly matter a great deal.

This is one of the reasons I believe specialist advice matters in sectional title insurance.

Not because general insurance brokers aren’t capable professionals — many are — but because sectional title has its own complexities, legal requirements and risks that are very different from standard commercial or personal insurance.

The questions are often far more nuanced.

Who is responsible for an excess when damage originates from one section but affects another? At what point does maintenance become an insurance issue — or vice versa? Is the scheme insured for true replacement value, or simply what seemed reasonable at renewal time? Are trustees properly protected in the decisions they’re making?

These aren’t technicalities. They’re the kinds of issues that can have very real financial consequences for a scheme.

One of the biggest misconceptions I still encounter is the idea that insurance is primarily about getting the lowest premium.

I understand why trustees think this way. Levies are under pressure, owners want costs controlled and managing agents are balancing numerous priorities at once.

Of course affordability matters.

But when insurance decisions are based purely on price, important questions can sometimes get overlooked.

What exactly is covered? What has changed since last year? Are the excesses still manageable? Has the valuation kept pace with rising replacement costs? Are there exclusions or limitations that could become problematic later?

Because the reality is that insurance tends to feel expensive right up until the moment you need it.

And when something goes wrong, nobody asks whether the premium was the cheapest. The question quickly becomes whether the scheme actually has the right protection in place.

To me, one of the clearest signs of a good specialist broker is whether they can sit down with trustees or a managing agent and confidently explain every part of a policy schedule in a way that actually makes sense.

Insurance wording can be overwhelming. Policy schedules are often filled with technical terminology, sub-limits, conditions and extensions that can easily be misunderstood.

Trustees shouldn’t be expected to simply accept cover without understanding it.

A good broker should be able to walk through every section of the policy, explain what it means, what is covered, what isn’t, where potential risks lie and where gaps may exist — clearly, patiently and in plain English.

Because informed trustees make better decisions.

A specialist broker should also have a strong understanding of the regulatory framework that governs sectional title schemes.

That means understanding the Sectional Titles Schemes Management Act (STSMA), the Prescribed Management Rules (PMRs) and CSOS requirements, and importantly, understanding the difference between what insurance is compulsory and what is simply recommended best practice.

There is often confusion around this.

Many schemes don’t realise certain covers are legally required, while others may be optional but highly advisable depending on the scheme’s unique risk profile.

That distinction matters.

Another practical example is fidelity insurance.

A specialist broker should understand how to correctly calculate fidelity cover and assess whether the scheme has adequate protection in place. Too little cover could leave a body corporate financially exposed, while too much may mean unnecessary cost.

Again, this comes back to advice.

And perhaps that’s really the heart of the issue.

Is proper advice being given?

Does the broker fully understand the specific needs of the scheme? Have they taken time to understand the age of the buildings, maintenance concerns, claims history, governance structures and operational risks? Have they compared available products and policy options to recommend what is genuinely most suitable for that scheme?

Or has insurance simply been renewed because “that’s what we’ve always had”?

In my view, a good specialist broker should be doing far more than arranging policies and assisting with claims.

They should be helping trustees and managing agents understand risk before it becomes expensive. They should be asking questions schemes may not know to ask themselves, highlighting potential blind spots and helping everyone make better-informed decisions.

Most importantly, they should be able to simplify complexity.

Trustees are not insurance professionals — nor should they have to be.

Their role is already significant, often voluntary and increasingly complex. Managing agents, too, carry enormous responsibility across multiple schemes, stakeholders and competing priorities.

Good advice should make their jobs easier — not more confusing.

At its core, sectional title insurance is about protecting communities, assets and financial stability. It is not simply an annual renewal exercise or a compliance requirement.

And in my experience, the difference between average advice and specialist advice often only becomes visible when it matters most.

The challenge is that by then, it’s usually too late to change the decision.

That’s why I’ve always believed the right conversation around insurance should happen long before a claim ever lands on someone’s desk.

When was the last time your scheme’s insurance was properly explained — not just renewed?

If you’re unsure whether your scheme has the right cover in place, whether the insurance requirements have been properly considered, or simply want a clearer understanding of your current policy, feel free to reach out.

Sometimes a conversation and a second opinion can provide valuable peace of mind — and help identify risks before they become costly problems.