Example of How
Average is Calculated
The unit is insured for R900,000.00.
However, 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.
For Example
Theft of gate motorsIntercom systemsAir-conditioning unitsSecurity surveillance camera equipmentElectric fencingEnergizersSatellite dishes and aerialsSolar panels and heating equipmentFire extinguishers and equipment, etc.
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, 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.
Other Factors
That Affect Insurance
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, the addition of entertainment area, etc.
Subsidence Cover
Generally, most policies give limited subsidence cover. However, this cover is excluded where there are 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.
Your Responsibility
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.
Fire 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
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 flammable or explosive materials on-site, section extension or renovations, etc.
Maintenance
The buildings should be properly maintained at all times to reduce the 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.
Disclaimers
Proper signage and appropriate disclaimer boards should be prominently displayed at entrances and particularly around swimming pools, visitors parking, stairs, etc.
Compliments & Accolades
Centurion (Head Office)
Central Office Park
257 Jean Avenue, Centurion
Sunnyside
Sunnyside
492 Spuystreet
Sunnyside
Pretoria
Annlin
Annlin
7 Dorethea Street
Annlin
Pretoria North
Our Branches
Centurion (Hq)
Central Office Park
257 Jean Avenue,
Centurion
Tel: 087 223 0000
Email: proadmin@proadmin.co.za
Annlin
7 Dorethea Street
Annlin
Pretoria North
Tel: 087 223 0000
Email: proadmin@proadmin.co.za
Sunnyside
492 Spuy Street
Sunnyside
Pretoria
Tel: 087 223 0000
Email: proadmin@proadmin.co.za
