What does the law say?
A body corporate must obtain a replacement valuation of all buildings and improvements that it must insure at least every three years and present such replacement valuation to the annual general meeting.
A body corporate must prepare for each annual general meeting schedules showing estimates of – a) the replacement value of the buildings and all improvements to the common property; and b) the replacement value of each unit, excluding the member’s interest in the land included in the scheme, the total of such values of all units being equal to the value referred to in sub-rule 4(a).
The Sectional Title Schemes Management Act (STSM) No. 8 of 2011 states the following bout insurance and what a sectional title valuation ideally should entail :