Sectional title corner – Why can’t I pay for only my unit’s insurance?
Our complex consists of nine sectional title units and 38 full-title units. We currently have insurance covering the buildings of the nine sectional title units; this premium does not form part of the levy but is shared equally between the nine owners. The insurance for the common property, security house, and tools are paid for by all 48 units and forms part of the levies.
One owner of a sectional title unit does not want to contribute to the sectional title insurance and wants to manage his own insurance. Is this allowed? – Gerhard
Dear Gerhard, the insurance premium should be included in the levies and should be recovered from owners based on the participation quotas of their sections (or nominated values if your complex made rules to change the participation quotas).
Insurance of the complex (sectional title) is governed by the Sectional Title Schemes Management Act and states that the common property (buildings) must be insured by the body corporate. An owner can only insure his household contents. The buildings do not belong to any owner separately and therefore cannot be insured by any owner separately.
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Who is Karien Coetzee?
Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.