Benefits of Insurance for Community Schemes
While having a Sectional Title Community Scheme insurance policy is mandated by law, it still helps to know that it is there for a good reason.
Insurance provides protection to property owners against losses and damages resulting from a variety of risks, including natural disasters, theft, vandalism, and accidents. This can help property owners focus on managing their properties without worrying about the financial impact of unexpected losses or damages. Moreover, comprehensive insurance can help property owners recover from financial losses and avoid the risk of bankruptcy.
Insurance plays an essential role in protecting property owners and their investments against a variety of risks. By transferring the risks associated with owning and managing property to an insurance company, property owners can protect themselves against financial losses and avoid the risk of bankruptcy or foreclosure. With the right insurance policies in place, property owners can have peace of mind knowing that they are covered against unexpected events and can focus on managing their properties effectively.
Insurance can seem like an unnecessary added expense to an already stretched budget, and sectional title insurance even more so. But there’s no getting around the fact that accidents happen, problems arise, and the unexpected is always, uh, unexpected and at the worst possible time too.
In South Africa sectional title insurance is a legal requirement. The costs should be shared by all the title owners and are included in monthly levy amounts, according to the participation quota (PQ) of each section. At the first trustee meeting following the Annual General Meeting (AGM), the Trustees must assess and decide on the insurance policy for the year ahead and it must be ‘adequate’ to meet the Scheme’s full needs.
Without an insurance certificate from the Scheme’s insurance broker confirming the Scheme’s insurance cover, home loans cannot be issued in favour of a potential purchaser. Not to mention an inadequate level of insurance just puts everyone’s assets at risk.
It is best to check what is in place in your specific Community Scheme.
All ANGOR managed properties are insured as a matter of course, and if the Scheme does not have its own existing policies, ANGOR ensures that the most fit-for-purpose policy for your Scheme is put in place. Under-insured or uncovered calamities are nobody’s friend, especially at today’s prices for repairs.
Author: Intigor Risk Management Services