The Houghton Insurance Update - August 2021
In terms of the Sectional Titles Schemes Management Act of 2011 (STSMA) Bodies Corporate need to ensure that buildings are fully insured. Please see below the section taken from the STSMA;
In terms of Section 3(1)(h) of the STSMA of 2011 provides:
“A body corporate must perform the functions entrusted to it by or under this Act or the rules, and such functions include—
(h) to insure the building or buildings and keep it or them insured to the replacement value thereof against fire and such other risks as may be prescribed;
(i) to insure against such other risks as the owners may by special resolution determine
(k) to pay the premiums on any insurance policy effected by it”
The Board of Trustees would like to notify all owners that the Body Corporate Insurance Policy was renewed from the 1st of August 2021. The Policy was renewed through Insurance Zone Insurance Brokers, with the lead underwriter remaining Old Mutual Insurance Company, along with 4 co-insurers. Quotes were obtained from Insurance Zone and one other Insurance Broker, thus ensuring that a full market exercise was undertaken with the final decision to place the policy through Insurance Zone once again.
Trustees considered the replacement value of the buildings and are confident that the sum insured will be sufficient in the unfortunate event of loss or damage. We can confirm that the policy covers Property Damage, Public Liability, Trustees Liability, and SASRIA.
Please note that this policy will only cover the permanent fixtures and fittings in the section. The owner of a section will be responsible for their own insurance to cover the contents of their section. Owners of a section will be responsible for the insurance excess payment in the event of a claim.
The standard excess has been increased to R18 000 each and every claim. In the case of Storm Damage, the excess remains R100 000 per claim. The Accidental Damage excess is remains R50 000.
Although the unit losses excess has increased to R18 000, we can confirm that this is less than the market average excess for policies with a similar building sum insured.
It is not uncommon for bondholders’ over sections to request an increase in the sum insured of a section/unit. In such instances, as well as if an owner requests a higher sum insured, the owner will be liable for the additional insurance premium, which you will see billed on a monthly basis as part of your levy statement.
Please see below a link for the Summary of Insurance for your information and company profile for Insurance Zone Insurance Brokers.
Please contact the Management Office to get more information regarding your section’s sum insured and if you require any adjustments.
Please do not hesitate to contact the Management Office if you require any further information regarding the Body Corporate Insurance policy.
Process for logging a potential Insurance Claim:
Please contact the Management Office:
Office: 011 034 2380
Email: admin@thehoughton.com
elanie@thehoughton.com
*All potential claims must be reported to Insurers within 30 days of date of loss
Kind Regards
The Houghton Management Office
011 034 2380
