Resultant loss vs. consequential loss
Resultant damage: This is defined as a loss that occurs as a direct result of an act caused by an insured peril. In sectional title insurance, the most common example…
trustee insurance
Are blocked pipes covered by insurance?
There is no requirement in community scheme legislation for insurance to attend to unblocking pipes. The mainstream community scheme insurers we work with exclude the unblocking of pipes or blocked…
What is the insured’s contractual duty following a claimable event?
Facing a community scheme claim event can be a stressful experience. To ensure a smooth process and maximize your chances of a successful insurance claim, it’s crucial for the owners…
Actions following an insurance valuation
In terms of The Sectional Titles Schemes Management Act 8 of 2011 (STSMA), specifically, Prescribed Management Rule 23.(3), A body corporate must obtain a replacement valuation of all buildings and…
Settling of claims in the sectional title environment
Sectional title ownership is unique in several ways. By dividing a building into sections with imaginary lines, akin to the borders of a country, it becomes essential to insure the…
Appointing your sectional title insurance broker
In the process of reviewing insurance, trustees often engage with several brokers to obtain the best quote. While this approach may seem prudent, it is not the best way to…
The 1-2-3 Approach of Sectional Title Insurance (updated)
Sectional Title insurance mainly involves three obligatory areas of risk: Buildings Cover, Liability Cover and Fidelity Cover. A fourth segment can arguably be added: any other insurance about the buildings…
Owners’ responsibility to take care of common property
Community scheme owners can easily turn a blind eye to maintenance and safety responsibilities inside the borders of the property. All insurance policies contain conditional clauses that make this the…
Understanding property owners’ liability cover & trustees’ indemnity
(Updated: 30 January 2025) In the context of community schemes, particularly sectional title schemes, it is especially important for trustees and managing agents, to understand the difference between property owners’…
Determining replacement values – the body corporate’s responsibility
[Updated: 19 November 2024} The body corporate must determine the replacement value of the buildings professionally at least every three years and ensure that the schedule of replacement values is…