Geysers – the most common claim
[Updated: 12 December 2024] Statistically, around 70% of claims are geyser-related. Geyser replacements seem to account for half of these, with the other half being the resulting damage, i.e., damage…
trustees
Claims ratio in a nutshell
(Updated 8 July 2024) For trustees and portfolio managers to have an objective understanding of an annual premium increase, or even an interim increase, it is vital that the content…
Trustees and insurance renewals
[Updated 30 April 2025] In the sectional title environment, short-term insurance plays a critical role. As the name suggests, short-term insurance policies typically cover one year and must be actively…
Why full insurance disclosure is important
When an insurance policy is purchased, the property owner (the insured) enters into a legally binding contract with the insurer to obtain indemnification against financial loss. This is subject to…
Is it possible for trustees of a body corporate to exclude or remove geyser cover?
[Updated: 30 October 2025] The short answer While trustees may wish to reduce costs by excluding certain geyser-related claims, such as wear and tear or maintenance, completely removing geyser cover…
Homeowners’ associations and insurance
[Updated: 22 August 2025] Community schemes are usually structured as sectional title schemes or HOAs (homeowners’ associations). The HOAs are usually either in the form of an association with a…
Insurance premium and sectional title legislation
[2025 update] The obligation for sectional title schemes to maintain proper building insurance remains one of the most critical legal and fiduciary duties of a body corporate. Legislative foundation Both…
Replacement values and legislation
(Updated: 6 January 2025) This article unpacks the legislation and prescribed rules related to replacement values, summarising them in layman’s terms: Section 3.(1)(h) of the Sectional Title Schemes Management Act…
Settling claims in a sectional title environment
[Updated: 04 August 2025] Sectional Title is unique in many ways. When one divides a building with “imaginary lines” that function much like the borders of a country, it becomes…
Buildings & insurance: Are you legal?
Are you an owner of sectional title property? Are you aware that your trustees are obliged by law to insure your property? The Sectional Titles Scheme Management Act 2011 (3.1(h))…