Owners in sectional title schemes believe that because the body corporate insures the common property it must also pay any insurance excesses, which is incorrect.
For example a burst geyser.
The Sectional Title Act provides that the owner in a sectional title scheme is responsible for all excess payments on insurance claims – unless the body corporate has passed a special resolution that it will cover these, in certain special cases.
Prescribed Management Rule 29 (1) requires the trustees to take reasonable steps to ensure the buildings and all improvements to the common property to the full replacement value and must negotiate excess amounts, premiums, cover, and insurance rates on behalf of the body corporate.
The most common insurance claims related to damage caused by burst geysers. Insurance companies often negotiate a higher excess amount for such claims, to reduce the overall insurance premium and claims.
Most insurance companies have call centres set up to deal with the more common claims and on these cases, no excess, or a considerably reduced excess, will usually be payable, provided the centre is contacted quickly and allowed to send one of their preferred suppliers to handle the work.
Quick action by you as the owner can save unnecessary damage to the unit and/or to other units.
Should you have any questions regarding a property transfer, kindly direct them to rayno@sjbothaattorneys.co.za
