Insuring your sectional title property made simple

Lightning strikes. Geysers burst. Furniture breaks. In your home, a tragedy can happen at any moment. Being insured protects you from future incidents and helps get your life back on track. In a sectional title scheme, insurance can be misunderstood. You should have two insurance policies, the first is a personal homeowner policy that covers your household contents. The second is the body corporate insurance which covers the building and common areas within a sectional title scheme. 

Insurance can often be a source of frustration in sectional title schemes. Here's a guide to help you understand the ins and outs of each type. 

Sectional title homeowner insurance

About the insurance

The body corporate insurance won't cover the contents of your home or your personal belongings. Even if you suffer loss or damage because of an event insured by the joint insurance, you'll still need individual insurance to cover these items. This is known as a home contents insurance.

What it covers

A home contents insurance covers theft, damage, or loss to household goods. These goods can include furniture, appliances, electronics, clothing and art - even frozen food spoilt during a power failure. If you can take an item away when you move, it's usually covered by this insurance. Some home content insurance policies include portable possessions insurance which keeps laptops, sunglasses, cameras, etc. safe while you're out and about. 

Insurance process

First, do your research. You'll want to find a home contents insurance that is affordable and covers your belongings as needed. After you've requested quotes, narrow down your choice, and read the policy carefully before signing the dotted line. 

Once you're insured, be smart by keeping your policy details updated. It helps to file all your paperwork together, take photographs of your home's rooms, and store receipts for new household items purchased. This can give you an edge when making a claim. 

Body corporate insurance

About the insurance

According to the Sectional Titles Act (Act 95 of 1986), you (together with the other trustees) are required to insure the building/s and common property of your sectional title property which includes new additions or upgrades to the property. Your body corporate will pay the insurance premiums from your monthly levy.

Additional changes to the Sectional Titles Schemes Management Act (Act 8 of 2011) also make it compulsory for bodies corporate to take out a fidelity insurance. This covers you and other trustees against the risk of loss of funds belonging to or handled by the body corporate due to fraud or dishonesty. 

What it covers

The insurance covers the structure of the building and common areas. This includes walls, boundary roads, entrance gates, stairways, swimming pools, and tennis courts. The Sectional Titles Schemes Management Act says body corporates must insure for these perils:

(a) lightning, explosion and smoke; 

(b) riot, civil commotion, strikes, lockouts, labour disturbances or malicious persons acting on behalf of or in connection with any political organisation; 

(c) storm, tempest, windstorm, hail and flood; 

(d) earthquake and subsidence; 

(e) water escape, including bursting or overflowing of water tanks, apparatus or pipes; 

(f) impact by aircraft and vehicles; and 

(g) housebreaking or any attempt thereat.

Insurance process

During the Annual General Meeting (AGM), you and the trustees can assess the insurance taken out for your sectional title scheme. At the meeting, comparative quotes, claims history, the recent valuation of the scheme and replacement value should be tabled and discussed. The body corporate will insure based on a rate agreed upon by the scheme's members.

Insure with De Lucia Property Group

Finding the right insurance provider can be a challenge. De Lucia Insurance Brokers and Financial Advisors understands this. We're here to answer any questions you have about the process. Our structured cover is tailor-made according to your unique needs as a future client and policyholder. To find out more, send us an email or call Michael De Lucia directly on 082 493 1089.