Dealing with damages to gates in community schemes

(Updated 15 January 2025)

 In community schemes, questions often arise about how to address situations where a third party accidentally damages common property, such as a front security gate.  We set out some important considerations below.

When a third party damages the gate, for example, a vehicle accidentally hits the gate and causes damage, this is considered an impact damages claim.

When a gate damages a third party’s vehicle, for instance, if it malfunctions or closes on a vehicle, this could result in a liability claim against the body corporate, often based on allegations of negligence by the scheme. Be aware, however, that negligence must be proven by the third party. These situations can get tricky, especially if both claims arise and there’s disagreement about the cause of the incident.

Impact damages claim

Let’s imagine a common scenario: a vehicle and trailer accidentally hit the gate while exiting, damaging it. In this case, the body corporate would handle the claim as an impact damages claim.

What happens next?

The body corporate submits an insurance claim for the damage to the gate.

Once the claim is lodged, the insurer takes over. This process, called subrogation, means the insurer assumes the rights of the insured (the body corporate) to recover costs.

The body corporate is responsible for paying the excess as outlined in their policy.

Important Do’s and Don’ts:

• Claim from the body corporate’s insurer: Provide all necessary details, including the third party’s information and a reference number from the local SAPS (a trustee should report the incident).Let the insurer manage recoveries. If the insurer determines there’s a chance to recover costs from the third party or their insurer, they will handle the process.
• Avoid interference: The body corporate should definitely not demand excess from the third party or accept or agree to any reimbursement or settlement on any terms. The exception where the insurer agrees that they (the insurer) will not be recovering excess and waive their rights in that regard. It is under these circumstances, where an experienced broker should be guiding the scheme management.  In the case of third-party damage, the body corporate should also never admit any liability. Doing so may invalidate the insurance claim as the insurer’s position would be prejudiced. Never say things like “our insurance will take care of this for you” nor provide third parties with any claim forms.
• What about the excess? Some insurers reimburse the excess after recovering costs, while others may not. This depends on the insurer’s policy, as the excess is part of the terms agreed upon when the policy was taken out.
• Liability claims – A different approach: If the gate causes damage to a third party’s vehicle, this becomes a liability claim. The process is different and typically involves the body corporate’s liability cover. For detailed guidance, refer to our impact damage pages and The Sectional Title Insurance Guide, which can be downloaded via the blue link button below.

Key takeaway

Always involve your insurer promptly and let them handle any recoveries or disputes. Properly reporting incidents and following insurance protocols helps ensure claims are processed smoothly.

Any incident that could result in a claim, should be reported to the insurer.