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

I N V E S T
&
D E V E L O P
It also helps to have photographs of your possessions. Keep
one copy in a fireproof safe at home or in a safety deposit box.
This can be time-consuming to do the first time around, but is
reasonably easy to update on an annual basis. However, if you
ever need to claim, the inventory will make the process easier
for you.
Ensure that the policy is regularly updated
Insured values on sectional title schemes should be updated
regularly to ensure that the insurance policy keeps up to date
with the market-related replacement value.
As per the Sectional Title Act, each year the trustees of sectional
title schemes should re-assess the insurance taken out for their
schemes, and table this at the annual general meeting (AGM).
As a property owner, it is important that you attend these AGMs
so that you know whether the insurance cover on your building is
in place, and is appropriate and/or adequate.
It is also important to let your body corporate know what
improvements or additions you have made to your home so
that they can inform the insurer. This way you avoid being
underinsured for them.
As for home contents insurance, clients often forget to inform
insurers about changed circumstances, and accumulation of
new possessions. Unfortunately they only realise the impact of
this when they have to claim. It is critically important to update
your policy annually, to ensure that any new items are accounted
for and covered.
Get an expert on your side
insurance policy. You and/or your tenants need to take out your
own, individual insurance policies to cover such items.
Ensure that you have enough cover
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With regards to adequately insuring your home contents, you
have to compile an inventory, and estimate the replacement
costs for each item. List every item in your home and garage,
when you bought it, its original cost and its estimated value.
Insured values on sectional title schemes should be updated
regularly to be sure that the insurance policy keeps up to date
with the market-related replacement value.
The same applies for home contents insurance. If you are not
sure about what it is you are being quoted on, or are unsure about
any aspect of your cover, get an expert to help you. Brokers are
a tremendous source of information and advice, and can assist
you with a myriad things from helping you update your inventory
to helping you with the entire process of lodging a claim with
your insurer.
Check that your unit is insured for the correct replacement
amount – particularly if you have renovated or added value in
some way to the unit – as the extra value might not be covered.
The usual practice is that the body corporate covers the cost of
insuring a standard unit’s participation quota, but any additional
cover needed is for the unit owner’s private account.
Insurance, let alone sectional title insurance, is not an easy
topic for anyone. It is advisable to consult a property valuer and
possibly a managing agent or an insurance broker specialising in
this field, to establish the cover needed.