The body corporate is responsible for insuring the common property, correctly so, but many owners in a sectional title scheme incorrectly believe that the body corporate is also responsible for the payment of any insurance excesses.
The Sectional Titles Act 95 of 1986 clearly provides that the owner in a sectional title scheme is responsible for all excess payments on insurance claims.
The body corporate can only be responsible for the excess payments on insurance claims if it has passed a special resolution that it will cover the excess claims, in certain special instances.
Prescribed Management Rule 29 (1) requires that the trustees take reasonable steps to insure 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.
Certainly, the most common insurance claims relate to damage caused as a result of a burst geyser, or the burst geyser itself. It is the reason certain insurance companies often negotiate a higher excess amount for these types of claim, for them to be able to reduce the overall insurance premium and claims.
Most of the insurance companies have call centres that deal with these more common claims. Usually, these common claims have no excess, or a considerably reduced excess, provided the insurance company is contacted quickly and allowed to send one of its preferred contractors as soon as possible.
The key here is for the owner to act quickly in order to save damage to the unit and/or possibly other units.
Make sure who is responsible for the payment of any excess on insurance claims in your scheme. You might be surprised to find out that it is, in fact, you.
For any property-related matters, contact Rayno Botha of SJ Botha Attorneys Inc. on 011 823 2428 or rayno@sjbothaattorneys.co.za
