Estate Living Magazine The Slow Movement - Issue 39 March 2019 | Page 36

P R O P E R T Y
&
I N V E S T M E N T
FIRE
RISK
MANAGEMENT FOR ESTATES
Every time we hear stories of veld fires, we are alerted to the very real danger
to our homes of a runaway fire. The devastating Knysna fires of 2017 are a vivid
reminder of just how quickly a fire can rage out of control and cause millions
of rands of damages. Coupled with domestic risks such as faulty wiring or
appliances, it’s essential that bodies corporate and trustees review their estate’s
insurance to ensure that they are adequately covered against fire risk.
Proper fire insurance cover is essential
A fire can financially cripple any establishment.
Flames, smoke and the water used to extinguish
the fire can severely damage buildings and
residents’ belongings. Should an estate not have
sufficient fire insurance cover, it may not be in a
position to rebuild or repair damages caused by
a fire event. Imagine owners forced to pay for any
repairs to their homes out of their own pockets,
and the lawsuits against the body corporate.
This could be financially devastating for anyone
involved.
According to the Sectional Titles Act of 1986,
bodies corporate have an obligation to insure the
building or buildings in a scheme against fire and
such other risks as prescribed, and to keep them
insured to the replacement value.
The insurance policy itself would usually have
special and/or general conditions, such as
prevention of loss clauses, that would specify
that the body corporate should take precautions
to prevent losses or accidents. This is usually very
specific about fire prevention, for example making
it a condition that all firefighting equipment is
installed, serviced and maintained in accordance
with the appropriate regulations and local
authority bylaws. management means that the trustees and managing agent, along with the assistance
of owners and occupiers of sections, take proactive steps to ensure that there is
sufficient protection in the event of a fire. So, what can bodies corporate and trustees
do to reduce exposure to certain types of fire risks?
As South Africa’s leading insurer, we recognise
that proper risk management is the key. Good risk •
Fire risk management | Focus areas for estates
In order for bodies corporate and trustees to manage their fire risk, it is essential that a
comprehensive fire safety management policy is in place. The following points must
form a part of any estate’s fire safety management policy.
Fire extinguishers
Make sure that there are fire extinguishers, in good working order, located close
to any places where fires can be expected to break out.