Types of Insurance for Sectional Title Schemes
There are various sections available in a sectional title insurance policy.
Some important sections include:
- Buildings: Provides coverage for losses or damages to building structures and the fixtures which are attached to the building. It typically covers losses resulting from fire, theft, vandalism, and natural disasters such as earthquakes, floods, and wind. It normally will cover all the buildings, including the sections, common property, other permanent, and boundary structures but excluding the land (because it is deemed indestructible) at the replacement value. The replacement value is vastly different to market value that you would receive from an Estate Agent. Replacement value includes the total cost of rebuilding the same structure, plus professional fees, demolition and site clearance costs.
- Common Property/ Office Contents: The Sectional Title Scheme often has certain contents within their security office or clubhouse. It may include certain static electronic equipment too. This is not covered for residents’ private contents.
- All Risks: Cover for items which may be exposed to Theft or Power Surge losses which are higher than the standard limit offered on an insurance policy. Moveable items (mobile phones, laptops, tools, small portable generators etc.) are best insured under this section, where they will achieve the widest cover, albeit at a higher or additional premium.
- Machinery Breakdown: This cover is worthwhile having and provides some peace of mind when any pumps, motors, lift room machinery, switchgear, gate motors or transformers break down. Proof of regular required maintenance will be called for at the time of a loss.
- Public Liability: Provides coverage for losses resulting from bodily injury or property damage caused by the property owner or their employees. This can include slip and fall accidents and other types of accidents or injuries.
- Trustees/ Office Bearer’s Liability: This section covers amounts that the Body Corporate or Home Owners’ Association or their office bearers must pay because of the wrongful act of an office bearer, such as a breach of trust, breach of duty, neglect, error, misstatement or misleading statement or omission for example.
- Employers Liability: Cover for damages which you as the employer are legally liable to pay, resulting from personal injury, illness or death to your employees or apprentices while they are working for you.
- Personal Accident: This is in some way similar to workmen’s compensation insurance, which provides coverage for injuries or illnesses suffered by employees while on the job. This can include medical expenses and disability benefits.
To contact ANGOR with any questions, or for financial and property management advice, please go to: https://www.angor.co.za/contact-angor-property-management/
Connect with a broker to guide you through your Sectional Title Community Scheme insurance requirements.
Author: Intigor Risk Management Services