Estate Living Magazine Invest SA - Issue 45 September 2019 | Page 44

I N V E S T
&
D E V E L O P
PROTECTING
YOUR
INVESTMENT
WITH INSURANCE
Your home is likely to be one of the most valuable assets
you will own. While you put a lot of time, effort and money
into making it the ideal home, it is equally important to
keep yourself informed on how well this investment is
protected.
Living in an estate, your property is covered by the sectional title insurance
the body corporate has taken out on the development. However, it is still your
responsibility as a property owner to ensure that your unit is adequately insured.
This means you have to understand the extent of your insurance cover and
personal liability to ensure that you are protected against any costly expenses as
a result of an unforeseen misfortune.
The body corporate of your residential housing complex is required by law to
take out insurance for the physical structure of your home. It is a requirement
stipulated in the Sectional Titles Act.
Section 37 (Section 1 of the new Act) requires that the trustees:
• insure the building/s and keep it/them insured to the replacement value
thereof against fire and other such risks as may be prescribed
• insure against such other risks as the owners may by special resolution
determine.
Here are four important things to keep in mind about protecting your investment
for some added peace of mind:
Know exactly what you are covered for
It is important to know what it is exactly you are covered for, as well as the extent
of your insurance cover. Your sectional title insurance usually only covers the
‘brick and mortar’ parts of the residential sections and common property for
their full replacement value in the event of damage or destruction from things
like fire, flooding, earthquakes, burst pipes and rioting. It does not cover the
contents of your home (major appliances, furniture, decor pieces, etc.) or any
of your personal belongings (jewellery and clothes, etc.), even if these are lost
or damaged due to one of the ‘insured events’ covered by the sectional title