Not all insurers provide this cover as it is not a standard requirement but an extended benefit. Most insurers who specialise in providing cover for community scheme risks do provide a limited amount of cover, usually about R5 000.
In the event of a claim, the insured client must prove the loss; this is can be achieved in the manner directed in the policy. While policies may differ slightly in this regard, the loss is usually determined by showing the last full year’s (four quarters) water consumption readings prior to the spike in consumption caused by the supply pipe failure. The loss amount must usually exceed the average of the last four quarters by 50% or more before a claim will be considered.
Caution
Cover is excluded (not provided) in certain circumstances of water loss and listed as follows:
- Leaking taps, geysers, toilets, water storage tanks, swimming pools, ponds, saunas, etc.
- The cost of water to refill above tanks, pools, ponds, saunas, etc.
- If the insured property is left vacant or unoccupied for more than 30 consecutive days.
- The cost of water lost by a deliberate action of the property owner or persons acting on behalf of the property owner (e.g. construction works involving the use of water).
- If it is found that the property owner failed to take prompt action to repair the cause of the water escape once aware of the problem.
The cost to repair the cause of the water loss is not covered by this benefit.
Author: Brian Addison, Addsure
Contact Addsure – The Leaders in Sectional Title Insurance – for fit and proper advice from advisors who understand Sectional Title. Contact us in Johannesburg (011) 704-3858; Durban (031) 459-1795; Cape Town (021) 551-5069