Amendment to Sectional Title Act to be made
This will state that the owner of a sectional title home will be liable for insurance excess should something happen.
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Who is responsible for the insurance excess in a sectional title scheme?
Until now, this has been an issue that has caused countless problems in the
property market, with many arguing that since the body corporate has one
combined insurance policy, it should pay out the excess.
The situation until now has been that trustees decide on an individual basis
who is responsible for insurance access - a solution that is not ideal when it
comes to combining the opinions of a large group of people.
However, a new amendment to the Sectional Title Act may spell and end
to this bone of contention once and for all.
The amendment states that "the owner of a section is responsible for any
excess payment in respect of his or her section payable in terms of a contract
of insurance entered into by the body corporate: provides that owners may by
special resolution determine that the body corporate is responsible for excess
payments in respect of specified damage."
The Regional Manager of Intersect Sectional Title Services, Martin Bester,
explained the law. "In plain and simple English the excess is payable by the
owner of the section that suffers the loss or damage," he said.
"Further to this, should the loss or damage be suffered on the common
property then the body corporate will be liable for the excess," he added.
"Naturally, exceptions will occur and the trustees will be required to use their
discretion in these circumstances, but this amendment does go a long way to
resolving excess disputes on the clear cut cases."
It is advised to seek out insurance groups that have policies specifically
directed to sectional title property owners.
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