Body Corporate Insurance in South Africa

Are the buildings and communal property areas of corporate buildings and/or residential complexes, properly insured in the Sectional Title or Body Corporate Insurance policy? Body Corporate Insurance is a special offer for the collectives that manage the communal areas of a residential complex or building.

Did your Trustees ensure that the Body Corporate is adequately insured?
Did your Trustees ensure that the Body Corporate is adequately insured?

Do you need Body Corporate Insurance Assistance

This specialist form of insurance, is normally sourced through the appointed Trustees of a Body Corporate, or Sectional Title units. Body Corporate Insurance must be regularly assessed by the Trustees.

One of the most important items on the list of Sectional Title Trustee duties, is to ensure that all the buildings and improvements within their sectional title scheme is insured to the right value – this is something that should be discussed at every Annual General Meeting.

Body Corporate Insurance provides peace of mind cover for the buildings, common property, walls (boundary), gate motors, entrances, security and irrigation for individual owner replacement - as an example.

Everything that forms part of the buildings (eg fitted cupboards, walls, and other permanent fixtures and fittings), will be covered by a Body Corporate Insurance policy, also known as Sectional Title Insurance. Owners of sectional title units are sometimes under the mistaken impression that the Body Corporate Insurance policy also covers moveables such as furniture and curtains as well. However, this is not the case.

Being a specialist niche area, all product options should be considered. These options may be confusing...

In fact, the smartest thing you can do is -- Get a specialist broker to do it for you!
Also, note the following guidelines and considerations, with regards to Body Corporate Insurance:
  • Under Body Corporate Insurance, normal perils should include: Fire, theft, impact, weather damage, earthquake.
  • Are the geysers (i.e. the water heating systems) covered under your Body Corporate Insurance?
  • Is loss of rent in terms of risk, covered in your Body Corporate Insurance?
  • Check your Sectional Title or Body Corporate Insurance policy: Is bursting and/or overflowing of pipes and tanks covered? Is slow leak damp over time, covered?
  • Check if your Body Corporate Insurance includes cover for civil commotion, SASRIA (riot and public disorder), public liability, trustees liability, labour disturbances and more.
  • A typical Sectional Title or Body Corporate Insurance policy should include all the above, as well as perils such as: Power surges, fidelity, trustee liability, loss of water, locks and keys, subsidence and landslip, accidental damages, to name a few.
  • Claims against liability and accidental, can be managed by ensuring and avoiding the following: Keep storage units clean, avoid loose fittings & pipes, loose bricks, tiles and paving, store gas safely, steps must have hand rails.
  • Also avoid dangerous electrical connections.
  • High claims ratios will result in either premium escalations of your Sectional Title or Body Corporate Insurance, or higher excess structures being applied.
Check all the perils insured for in the Sectional Title Policy
Check all the perils insured for in the Sectional Title
or Body Corporate Insurance policy.
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