Insurance

With over 40 years’ combined experience, our in-house insurance brokerage division is well able to offer you competitive premiums and excellent Community Scheme Products

In-House Brokerage Division

Our in-house brokerage division is registered with the Financial Sector Conduct Authority (FSP no: 1234), as per Financial Adversary and Intermediary Services Act, 2002 (Act no.37 of 2002). We have a combined 40 years’ experience in the insurance industry and specialize in all Community Schemes, Sectional Title Property Insurance, Share Blocks and Homeowners Associations. Mandates are held with various specialised insurers, whose policies are structured around community schemes. With these mandates we are able to offer competitive premiums and excellent products.

It is Important to Note

That most policies, if not all, include the “Average Clause” which entitles the Insurer to apply average in the calculation of any claim settlement. If such calculation establishes that the property is under-insured at the time of the loss, then in terms of policy the insured will bear a ratable share of the loss. It is imperative that the policy sum insured is an accurate calculation of the replacement value of all property.

Your Responsibility

It is the responsibility of the owner/Body corporate to:

  • Immediately report a loss when it has occurred or within a reasonable period or usually within 30 days of the loss.
  • One is required to take all reasonable precautions to prevent a loss or to minimise the damage.
  • Application of average in the event of a claim

The Policy

The policy schedule should always be read in conjunction with the policy wording. The policy documents should be read thoroughly to ensure that the cover provided meets the requirements of the scheme and that the information reflected is correct. Always pay attention to and ensure understanding of the terms and conditions, memorandums, endorsements, warranties, notes, exceptions, exclusions of the policy and the excess payments which are applicable in the event of a claim.

Claims Facilitation

Each scheme has a dedicated claims assistant who in the event of a claim will facilitate the entire claim process and will assist the owner/scheme to:

  • Registration of the claim
  • Appointment of the contractors
  • Authorise the repairs
  • Conclude and finalise the claim

Please contact us immediately upon the happening of a loss, should this occur after hours and it is necessary to appoint a contractor for emergency repairs. Please do remember the policy limits.

In-House Brokerage Division

Our in-house brokerage division is registered with the Financial Sector Conduct Authority (FSP no: 1234), as per Financial Adversary and Intermediary Services Act, 2002 (Act no.37 of 2002). We have a combined 40 years’ experience in the insurance industry and specialize in all Community Schemes, Sectional Title Property Insurance, Share Blocks and Homeowners Associations. Mandates are held with various specialised insurers, whose policies are structured around community schemes. With these mandates we are able to offer competitive premiums and excellent products.

The Policy

The policy schedule should always be read in conjunction with the policy wording. The policy documents should be read thoroughly to ensure that the cover provided meets the requirements of the scheme and that the information reflected is correct. Always pay attention to and ensure understanding of the terms and conditions, memorandums, endorsements, warranties, notes, exceptions, exclusions of the policy and the excess payments which are applicable in the event of a claim.

Claims Facilitation

Each scheme has a dedicated claims assistant who in the event of a claim will facilitate the entire claim process and will assist the owner/scheme to:

  • Registration of the claim
  • Appointment of the contractors
  • Authorise the repairs
  • Conclude and finalise the claim

Please contact us immediately upon the happening of a loss, should this occur after hours and it is necessary to appoint a contractor for emergency repairs. Please do remember the policy limits.

It is Important to Note

That most policies, if not all, include the “Average Clause” which entitles the Insurer to apply average in the calculation of any claim settlement. If such calculation establishes that the property is under-insured at the time of the loss, then in terms of policy the insured will bear a ratable share of the loss. It is imperative that the policy sum insured is an accurate calculation of the replacement value of all property.

Your Responsibility

It is the responsibility of the owner/Body corporate to:

  • Immediately report a loss when it has occurred or within a reasonable period or usually within 30 days of the loss.
  • One is required to take all reasonable precautions to prevent a loss or to minimise the damage.
  • Application of average in the event of a claim

Replacement Values

In determining the replacement values, it is imperative that consideration be given to different types of structures and infrastructure for example: units, garages, storerooms, workers quarters, sport and recreational structures, swimming pools, paving, street lights, boundary walls, drainage, sub stations, etc. and the replacements values of each.

Property Evaluation

It is the responsibility of the Body Corporate and owners to determine the replacement costs of the units including all common property and to ensure that the complex is adequately insured.

Additional Costs

Remember, additional costs such as professional fees, VAT, demolition, debris removal must also be included in the calculation to ensure accuracy of the insured values.

Example of how average is Calculated

The unit is insured for R900,000.00 the unit’s correct replacement cost is R1,400 000.00. There is a fire and the cost of damages and removal of debris is R650,000.00.

In This Case

The settlement calculation will be as follows with the application of the Average clause: If the average clause is applied by the insurer, the total the insurer will settle for a loss of R650,000.00 will be R417,857.14.

Crucially Important

From the calculation below, one can see why it is crucially important that the complex together with its common property is insured for the correct replacement value. Some insurers are providing limited cover for external fixtures and fittings.

All Risk Cover

However, ALL Risk cover should be considered for any fixture or fitting located in the open that may potentially be subject to theft, attempted theft, malicious damage or vandalism.

For Example

  • Theft of gate motors,
  • Intercom systems,
  • Air-conditioning units,
  • Security surveillance camera equipment,
  • Electric fencing,
  • Energizers,
  • Satellite dishes and aerials,
  • Solar panels and heating equipment,
  • Fire extinguishers and equipment, etc.

Other Factors that can Affect your Insurance Cover

Other Factors that can Affect your
Insurance Cover

Improvements

Insured values must be adjusted when additional items are added or improvements are made to the property or common property. For example: wooden flooring. carpets, pools, Jacuzzis, refurbishing of kitchens or bathrooms, addition of entertainment area, etc.

Contractors On Site

The Body Corporate’s insurance does not cover contractors or loss or damage caused by them on site. It is strongly recommended that the Body Corporate only allow contractors with the correct Liability Cover to work at the property. It is further suggested that compliance in terms of OHS Act be taken seriously.

Maintenance

The buildings should be properly maintained at all times to reduce risk of failing roofs, waterproofing, collapse of walling, the prevention loss or injury etc.

Structures

All structures must adhere to building regulations and standards, retaining walls are specifically excluded from cover.

Fire Fighting Equipment

Fire fighting equipment or prevention equipment must be maintained in working order and serviced annually as required. One must monitor regulations and the changes to these regulations where additional equipment requirements have been added to the regulation

Disclaimers

Proper signage and appropriate disclaimer boards should be prominently displayed at entrances and particularly around swimming pools, visitors parking, stairs, etc.

Risk Alterations

Owners and Trustees have a responsibility to advise the insurer of any increased risk that would affect the underwriting or premium rate or cover itself. For example: Businesses being run from the unit, storing of flammable or explosive materials on site, section extension or renovations, etc.

Limited Subsidence Cover

Generally most policies give limited subsidence cover, however, this cover is excluded where there is active soils such as clay, dolomite and similar soil types that contract and expand due to the moisture content or water content of the soil. This means that there will be no cover for Subsidence and Landslip in these areas.

Julie Christoforos

Insurance Executivere-divider

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Centurion (Head Office)

Central Office Park
257 Jean Avenue, Centurion

Northcliff

Northcliff
Suite 301B Misa Park
15 Catherine Ave
Northcliff
Johannesburg

Sunnyside

Sunnyside
492 Spuystreet
Sunnyside
Pretoria

Annlin

Annlin
7 Dorethea Street
Annlin
Pretoria North

Our Branches

Centurion (Head Office)

Central Office Park
257 Jean Avenue, Centurion

Tel: 0861 36 44 44
Fax: 012 344 3741

Northcliff

Suite 301B Misa Park
15 Catherine Ave, Northcliff

Tel: 0861 36 44 44
Fax: 012 344 3741

Sunnyside

492 Spuystreet
Sunnyside
Pretoria

Tel: 0861 36 44 44
Fax: 012 344 3741

Annlin

7 Dorethea Street
Annlin
Pretoria North

Tel: 0861 36 44 44
Fax: 012 344 3741

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