5 need-to-know factors about sectional-title insurance
Are you looking for sectional-title insurance? Deciding what insurance to get for your new home can be confusing but we are here to help! Gaining a better understanding of insurance can help to protect you from costly mistakes.
If you’re not a homeowner yet, there’s no need to despair. Find your dream house for sale on GotProperty.
Know who is liable for the sectional-title insurance expenses
When it comes to sectional-title insurance, it’s important to know who is responsible for covering the expense of this type of coverage. It’s mandatory for every
The price of insurance is generally divided between the section owners by incorporating it into the levies that are payable every month. How much you pay will depend on the participation quota of your unit.
If the value of your unit has increased, you may be liable for settling the additional expenses that extend beyond the regular participation quota.
Understand what is covered by the policy
Knowledge is power! Ask for a copy of the insurance policy so that you can be clear about what is covered. Having an in-depth understanding of your policy will help you avoid the risk of being under-insured.
Don’t forget to get a professional in to check that your property isn’t under-insured. Expert advice can help to ensure that you don’t fall short when it comes to submitting a claim.
While this is not an exhaustive list, take a look at this overview of what you can expect the owners as a collective to be covered for:
- Third-party public liability
- Trustee and employer’s liability
- Machinery breakdown
- Accidental damage
- Demolition expenses
- Damage to common property from specified natural disasters, riots and burst pipes
Assess what additional insurance is required
It’s important to understand the limitations of your sectional-title insurance. This insurance is more about covering the development structures, but it doesn’t offer you protection for the possessions inside your home. You’ll need to take out additional insurance policies to cover your furniture and various home contents.
Start by making a list of your possessions along with the replacement expenses associated for each item. This list should be updated every year to ensure that your insurance coverage stays current. Every few years, get an expert in to ensure that your valuation is accurate.
Learn more about excess
Ask the body corporate what the excess regulations are. These regulations should provide you with information on who is liable for the excess in various circumstances.
While these regulations need to be clear, they should be developed in a manner that prevents multiple claims from becoming too complicated.
Implement safety measures on the common property
It’s essential that the common property adheres to fire and safety regulations. Ask your body corporate to get an expert in to check that your development has implemented the necessary safety precautions. It’s important to ensure that the national building regulations are complied with. Not only do these safety measures help to protect you and your loved ones, but they also have an impact on insurance claims.
Bonus tip: Sectional-title insurance policies should be reviewed and updated every year. Make sure that this process takes place at your body corporate AGM. Updates to the policy consider inflation as well as renovations to the common property.
A better understanding of sectional-title insurance is essential if you want to avoid costly mistakes. Get your house search off to a great start by visiting GotProperty today.