Do you have dual insurance on your building?

[Updated: 07 November 2025]

Dual insurance, sometimes called double insurance, occurs when the same risk is insured by two overlapping but independent policies. In the context of sectional title schemes, this is more common than many owners realise.

What the law says

Section 14 of the Sectional Titles Schemes Management Act allows for dual insurance:

(1) Notwithstanding the existence of a valid insurance policy effected by the body corporate pursuant to the provisions of section 3(1)(h), an owner may obtain an insurance policy in respect of any damage to his or her section arising from risks not covered by the policy effected by the body corporate.

(2) This section does not limit the rights of an owner to insure against risks other than damage to his or her section.

In simple terms, an owner may take out additional cover for risks not already insured under the body corporate policy, for example, to extend cover for certain exclusions or specific contents-related risks.

At Addsure, we use two distinct terms to make the concept clearer:

• Dual insurance – intentional additional cover per Section 14.
• Duplicated insurance – unintentional overlap, usually through error or misunderstanding.

This in-house distinction helps to separate legitimate additional cover from costly duplication.

Where duplication commonly occurs

A growing number of owners are unknowingly insuring their sectional title properties twice. This often happens when homeowners purchase personal policies online or through direct call centres, without receiving appropriate advice. The call centre operator may not be familiar with sectional title legislation and therefore fails to recognise that the building is already insured through the body corporate.

Most domestic policies include a “homeowners” or “buildings” section by default. If this is left unchecked, the owner ends up paying for the same building cover already provided under the scheme’s building policy.

The purpose of Section 14

Section 14 was designed to allow owners to fill specific gaps, for example, insuring improvements or fixtures within their section that are not covered by the body corporate’s policy. It was never intended to create overlapping claims for the same building structure.

Fairness and claims handling

To ensure fairness, the body corporate’s policy should always be the primary cover for the buildings. A personal domestic policy should only respond where it offers additional benefits beyond what the scheme policy provides.

When duplication happens at the point of sale, it indicates that the owner’s insurance needs were not properly assessed. In South Africa, insurers sometimes share losses proportionately when double insurance is discovered at claim stage. However, in sectional title schemes, this approach is illogical since the body corporate premium covers the entire scheme collectively.

What owners can do

Owners who discover that their personal insurance policy duplicates the body corporate’s cover can request a refund of premiums from their domestic insurer. It’s worthwhile reviewing personal policies carefully and confirming with your broker or insurer whether your building is already insured under the scheme’s policy.

Final thought

Dual insurance can be valuable when used intentionally, for example, to extend cover beyond what the scheme provides. But duplicated insurance wastes money and complicates claims. Taking a few minutes to review your policy could save you from paying for the same cover twice.