Property insurance can be quite tricky especially with regards to exactly what is being covered. Look through the policy and make sure that the actual buildings are being covered and not the buildings contents. This should include all streets in a complex, sports facilities, pools, and out buildings on the property. Going through the fine print in any insurance policy is vital in order to avoid the possibility of having a claim rejected by the insurance company.
Sectional title insurance is often the most confusing type of building insurance. This type of insurance is usually taken out by people living in townhouse complexes or security villages. In a sectional title insurance policy, all buildings need to be covered as a whole. The premiums for this type of policy are usually paid to the body corporate as a portion of the monthly levies.
The body corporate or trustees are obligated to insure buildings against certain events like:
- Explosions, fires and lightning
- Storms and flood water
- Riots, civil unrest, violent strikes etc.
- Airborne accidents like plane crashes
- Vehicle collisions
- Earthquakes
- Broken geysers and pipes
Wooden tool sheds and similar wooden structures are usually not covered. It is a good idea to check for this when erecting a tool shed on your property.
The most common type of claim is for water damage due to burst pipes and faulty geysers. If water pipes and geysers are not properly maintained, the insurance company could reject claims relating to water damage. Homeowners are responsible for this type of maintenance. If a pipe bursts due to improper materials or some other fault which you have no control over and the carpets or ceiling of the apartment below are damaged, the insurance company will be responsible for the repair of the pipes and also the resulting damage. However, if there is a leak in a pipe and it is ignored, the resulting damage will be your responsibility. It is thus essential that sectional title owners attend the Annual General Meetings of the body corporate to ask questions and ensure that they are adequately covered. If you are unhappy with the price of your current sectional title insurance policy, shop around for better rates and present your findings at the AGM meeting.
Candy Summers has been assisting consumers to find cheap insurance quotes for many years and has shed light on the products offered by companies like Santam and Zurich Insurance.