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If you are looking for customised commercial insurance for your apartment, trustees need to ensure that they have insured the body corporate against certain events. This is far easier for trustees these days due to the fact that there are specific customised sectional title policies which are now readily available.
There are a couple of insurance products on the market that have been specifically designed to suit the sectional title environment in South Africa with many leaders in the business.
Underwriters for these specialist sectional title products have moulded their policies, working to suit the Sectional Titles Act, particularly with reference to the provisions set out by prescribed management 29. This rule stipulates that trustees are expected to ensure that particular risks are covered, but not limited to:
- Housebreaking or attempted burglaries.
- Storms and floods.
- Burst or overflowing water tanks, equipment and pipes; this includes valves, cylinders, thermostats, cisterns and anything else pertaining to hot water systems.
- Loss of occupation following an insured event and therefore the need for other or similar accommodation, or loss of rent following an insured incident.
Furthermore trustees need to consider fidelity cover and cover for property owner’s liability. The owners of sectional title units – apartments included, are required to furnish the trustees with directions with regards to these at the AGM.
Property Owner’s Liability Or Public Liability:
- Property owner’s liability or public liability is normally defined as damage that the insured is legally liable to pay for as a result of damages that the insured is legally liable to pay for as a result of the accidental death of or bodily injury to or illness of any individual.
- The accidental loss of or physical damage to property insured.
Before customised policy wordings were available trustees simply had to rely on the knowledge of the local insurance broker who more often than not did not necessarily have a clear understanding of the terms and conditions of the requirements of the Sectional Titles Act and its related management rules.
In the past the wording of a standard building policy would exclude the phrase, “bursting or overflowing of water tanks, apparatus or pipes” The broker needed to specifically add this addendum to the insurance schedule.
Apartment insurance offers customised cover for you – the sectional title owner of a property.
Fidelity cover is cover for the loss of money – in this event money that belongs to the body corporate – through fraud or any other dishonest dealings.