1. Sectional Title Policies
These policies / products are provided by the main insurance companies (insurers) and underwriting managers (UMAs). Addsure are intermediaries and have agency agreements with these companies.
Some are all risk policies and others Perils based (Combined – fire and perils). These policies generally automatically cover the requirements of the prescribed rules except for non-standard buildings and improvements, retaining walls and certain other risks, e.g. sections used for woodworking business.
They essentially cover the buildings but also have sections such as Geyser Maintenance Cover, Liability, Trustee Indemnity and Fidelity. Take care here as Liability, Trustee Indemnity and Fidelity differ from policy to policy. Most policies do not comply in terms of fidelity.
It is important that your broker / advisor guide the body corporate as to the most appropriate cover, product and arrange additional cover and policies in respect of the body corporate’s needs if certain risks are not adequately covered by the one policy alone.
Most of Addsure’s body corporate / community scheme clients are covered by:
- CIA (commercial and Industrial Acceptances) underwriting Managers for Compass Insurance Co Ltd
- Corporate Sure (C-Sure Underwriting Managers Pty Ltd) owned by Santam Insurance Co Ltd
- FPA (First property Acceptances) Underwriting managers for / with Centriq Insurance Co Ltd
- Hollard Insurance Co Ltd
- Zurich Insurance Group Ltd
- AIG Ltd
- Santam Ltd
- Mutual and Federal Ltd
CLICK HERE for Quote Request
2. Liability Policies
Sectional Title legislation requires that bodies corporate are protected / insured against liability in respect of death bodily injury or illness or loss of or damage to property occurring in connection with the common property.
Most Sectional Title policies include Liability (Property Owners Liability) however great care should be taken when switching policies.
Additional Cover can be purchased from one of the above companies.
Camargue Underwriting Managers provide Addsure can clients with a wide variety of Liability products.
3. Trustee Indemnity
Most Sectional Title / Community Scheme policies include Trustees Indemnity as an extension of Liability Cover however, this can also be increased or alternative cover purchased.
Addsure’s FIDCURE product arranged via Camargue is best suited for the environment.
4. Fidelity Cover
Most Sectional Title policies (both All Risk and Perils based) have limited Fidelity cover in that it only covers dishonesty of trustees and employees, and excludes managing agent dishonesty. Prescribed Management Rules require that Managing Agent dishonesty be covered by a policy purchased by the body corporate unless a general meeting of the owners agree otherwise.
Addsure’s FIDCURE product properly covers this need including trustee indemnity above.
CLICK HERE to read more about this product and need.
CLICK HERE for FIDCURE policy wording
CLICK HERE for FIDCURE Proposal Form
CLICK HERE for FIDCURE Renewal Proposal Form
5. Other Products
We categorise certain financial products under ‘Other Products’ in line with sectional title legislation.
In line with prescribed management rules, trustees are mandated to purchase additional cover against perils or dangers which they deem appropriate which pertain to the buildings.
In some cases, only a trustee resolution is required and other cases, a special resolution.
The Sectional Titles Act or Sectional Title Schemes Management Act also provide for owners “to insure against other such risks as the owners may by special resolution determine”.
5.1 STILUS – Sectional Title Levy Insurance
Addsure supports this product as it has its place in the sectional title environment today. In schemes where non-payment of levies has become the norm, the financial wellbeing of the entire scheme deteriorates as a result. Stilus provides the solution to many such problems.
The product is now also available to homeowner associations.
CLICK HERE – To read more about STILUS
CLICK HERE – To read a short article about STILUS
If you would like a quotation for your community scheme, contact one of our branches or email email@example.com with the information set out in the QUOTE REQUEST FORM which can be emailed to firstname.lastname@example.org or fax to 021 551 9764.
Homeowner Associations (HOAs) are also catered for by the insurance industry.
These policies are specifically designed to cover the common property and liability risks for this sort of community layout.
It is very easy to underestimate the replacement values of these areas. Directors / Trustees should take care.
NPC structured HOAs may also need to consider a Directors and Officer policy.
CLICK HERE for Quote Request HOA Policy