As of 29th November 2008, the Sectional Title Act has been amended, wherein prescribed management rule 29 (4) states now that “The owner of section is responsible for any excess payment in respect of his or her section …….unless the Body Corporate has by way of a special resolution determined that they will cover excess payments in respect of specified damage”.
This means the owner has to pay the excess to the Body Corporate or directly to the insurance company before the claim will be approved.
Most insurance companies have call centers which have been set up to deal with for instance geyser claims. In most cases, no or a reduced excess is payable if the owner contacts the call center and reports the claim directly through such a hotline.
It is advisable for sectional title trustees to circulate the information of the insurance policy including the name of insurance, policy number, information about the excess, and contact no of the call center to all owners.
Hi, is it compulsory to belong to the insured arrangement if your unit is fully paid off?
I feel that the insurance that the Managing Agents have put in place does not offer value for money; and I would rather self-insure this risk. Thanks
Thiru
Hi Thiru,
Thanks for your email. In a sectional title scheme, all units need to be insured. Your section is included in the building insurance of the body corporate. You can take out additional cover at your own expense.
If you own a freehold property, you as owner of the property can decide to take out insurance. If you still have a bond, the bondholder will demand insurance cover. However, you can chose the cover and the insurer yourself.
Hope this helps.
Michael
Hi There,
I have a query regarding the ammendment for excess payments. It is not really clear as to what claims this section refers to.
There happened a hole in the roof of my simplex of which we are owners. The roof has been demarcated by the body corporate as outer property (common property). There happened to be a number of storms while I was away for a month on holiday and resultant damage to my ceiling occured.
Upon returning I took the matter up with the caretaker who immediately brought in contractors to repair the roof and confirmed that it was the cause of my ceiling damage. I was advised to submit a claim to the Body Corporate insurers. They returned saying I should pay an excess of R2500 before they can process the claim.
I took it up with the body corporate to request that they pay the excess as this was a result of damage to their section of the property. After a year they have come back saying the onus is on me to pay the excess.
I then began trying to do some research on the act and came upon this ammended section.
1. Does it apply to me?
2. If it does, what is the special resolution and how does one go about implementing it? Do I qualify for this special resolution.
I am in a fix, we are students and R2500 for something which isn’t our fault is quite a lot of money.
Hi Paulette,
Thanks for your email. The amendment means that the person who claims is liable for the insurance excess. Since the roof is common property, the body corporate is responsible for the repairs and should have lodged the claim and paid the excess.
Hope this helps.
Michael
To Whom It May Concern
I live in a 25 year old unit, that has 3 levels to it. A rusty discolouration and blistering on the walls in a certain “path” of 2 of the levels, over 3 months, has resulted yesterday (14 March 2012) in a plumber finding that the galvanised outlet drainage pipe, has 3 slow leaks to it around the “clamps” that join the pipes. Evidently today the pipes are made of plastic.
May I know, for whose expense will this claim be?
Thanks and regards
Norma Currin
Dear Norma,
Thanks for your email. It depends were the pipe is located and if the pipe only services your unit or others too, but from your explanation it appears it is a body corporate responsibility as well as an insurance claim (provided the damage exceeds the insurance excess).
Hope this helps.
Michael
Hi
I would like some clarification on insurance claims.
In the case of a new geyser replacement on a sectional title property, is it common practise for the owner to pay the entire cost (plumbing, cost of new geyser,insurance excess) to the body corporate to have new geyser installed immediately and wait for the insurance company to pay out before receiving money back, excluding the excess?
As far as I am aware, the owner pays just the insurance excess to body corporate.
Thanks
Good day. My neighbors recently upgraded their bathroom. The builders damaged a electric cable running underneath there bathroom. After about a month i experienced power failures to my house. Called out the municipality(to thump test the cable) to test the cable,got some electrician involved and found my cable are down to earth. How are now responsible for the R3500 excess. My electricians installed temporary power to my house from the Budgie box. Now the Bodycorp are pressuring us to get the temporary cable out. The contractors can only work at their own speed. Could you please assist me.