How does Home Insurance work in Sectional title Units?

A Sectional Title Unit is made up of a section of a building or different buildings.

When you buy a sectional title, you purchase a section as well as an undivided share of the common property.  This “share” is the communal gardens, paving, etc.

You only own the inside of your unit, and everything outside this unit is part of the common property.

Due to the rise of crime in South Africa and the heightened security of complexes, sectional title living has become exceedingly popular.

Sectional title Units – who Pays, the Body Corporate or You? 

Sectional title

So how does insurance work when  a lot of what you own, the Body Corporate Insurance Policy covers?

Who pays, you or the Body Corporate? The truth is that every owner in the complex pays part of the cost of insurance.

The premium each month is included in the annual budget and paid from the owners’ monthly levies. The body corporate will have insurance cover against weather-related damage to the buildings such as flooding.

People who live in sectional title units must understand what their cover is in the body corporate’s policy and whether they need to insure their household goods separately.

Sectional title – Who Pays the Excess

The body corporate must implement a claims procedure so that owners know what to do in the case of flooding, etc. It is the owner’s responsibility to claim via the body corporate to ensure its legitimacy.

There may be an excess amount due, and according to the Sectional Title Act, the owner will be responsible for the excess payment.

You’re Responsible for what’s Inside

The body corporate doesn’t cover the contents of your particular unit but is essentially just a bricks and mortar type of insurance.

Every tenant, whether renting or owning a unit, has to take out an insurance policy to cover their personal items.

The trustees must ensure that all tenants understand who pays for what and who will pay the excess in the event of a claim?

Sectional title Living is Communal

Many owners of a sectional title believe that the body corporate’s insurance policy covers their unit and everything in it.

Before you invest know what your responsibility is and what it isn’t to save yourself financial loss and unhappiness.

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