Burst Pipes and Insurance Excess: Who Pays? The question of who bears responsibility for insurance excess when pipes burst generates considerable debate within bodies corporate, often revealing opposing interpretations of policy wording and management rules. Understanding the legal framework and practical application helps trustees, managing agents, and owners navigate these situations with clarity and fairness. Cover Under Body Corporate Insurance Whether pipes run through c

How Skipping Insurance Valuations Leads to Averaging Disasters Elected trustees of bodies corporate carry a fiduciary duty to ensure adequate insurance cover for their schemes. This obligation is underscored by the Sectional Titles Schemes Management Act No. 8 of 2011, Prescribed Management Rule 23, which clearly states: "A body corporate must obtain a replacement valuation of all buildings and improvements that it must insure at least every three years and present such repla

When Trustees Pay the Price: Understanding Personal Liability in Underinsurance Cases The role of a body corporate trustee carries significant responsibility, including ensuring adequate insurance cover for the scheme. What many trustees don't realise is that they can face personal financial liability when underinsurance occurs, even when trustee liability cover exists. Understanding how this happens is crucial for anyone serving in this capacity. The Scenario That Creates Pe

When sectional title owners invest in enhancing their units with luxurious upgrades, a critical question often arises: who bears the responsibility for insuring these improvements? Understanding the distinction between what the body corporate covers and what remains the owner's responsibility is essential for comprehensive protection. The Body Corporate Insurance Mandate The body corporate holds a clear legal obligation to ensure common property and all built sections to thei

Property owners occasionally discover damage to their sections or common property resulting from infestations of ants, termites, rats, birds, or other pests. When this occurs, a natural question arises: Does the body corporate insurance policy cover such damage? Understanding cover limitations in this area helps set realistic expectations and encourages appropriate preventive measures. Body corporate insurance: The Direct Answer Body corporate insurance policies do not typica

When a body corporate member suffers financial loss due to claim averaging or rejection resulting from underinsurance, they naturally seek ways to recover their shortfall. For elected trustees, this reality creates a significant exposure that many don't fully understand until it's too late. The legal framework places clear responsibilities on trustees, and failing to meet these obligations can result in personal financial liability. The Fiduciary Duty of Trustees Elected trus

Imagine this: your vehicle is damaged while being towed in Namibia, or a body corporate trustee travels to Mozambique for a business meeting, but takes along the BC laptop for the AGM prep and it gets stolen — only to discover later that their insurance claim has been declined because it happened outside  the policy’s territorial limits. It’s a frustrating (and costly) surprise that many policyholders could easily avoid, if they understood one small but important clause: Terr

When trustees talk about levies, voting rights, and maintenance costs, there's one document that determines it all: the Participation Quota Schedule (PQS). Yet most owners barely glance at it, and many don't understand what it actually does. Here's the reality: your participation quota isn't just a number on a spreadsheet. It's the backbone of your body corporate's financial structure, and nowhere is this more critical than when it comes to insurance. What Exactly is a Partic

Nine Fridays. That's all that stands between you and Christmas. Nine increasingly chaotic Fridays where your productivity will plummet, your inbox will fill with "quick drinks" invitations, and your brain will slowly turn into mulled wine. Welcome to the Silly Season, where common sense goes on holiday before you do. The Great December Delusion Let's be honest: December is when we all collectively lose our minds. We're tired. We're burnt out. We're desperately counting down t

In today's uncertain world, financial protection has become a priority for South African families. Short term insurance is one of the most effective ways to safeguard your family against unexpected risks such as accidents, property loss, or legal disputes. Unlike long term insurance which often covers events tied to life and retirement, short term insurance provides flexible protection for specific needs and a limited period. As families in South Africa prepare for 2026 and b

An analysis by TransUnion South Africa indicates significant growth potential in the short-term insurance market by revealing that a substantial one-third of new policies come from customers who haven't had insurance in the past two years. The study also challenges the notion that brand loyalty is dead, showing that 13% of customers who cancel their policies will eventually return to their original insurer. Every industry operates on accepted wisdom, and the short-term insura

When you drive off the dealership floor in your new car, it’s one of the best feelings, but did you know that the moment your wheels hit the road, your car starts losing value? If something unexpected happens, like an accident or theft your insurer will pay out the current value  of your car, not the amount you originally paid for it. That’s where credit shortfall insurance , also known as gap cover , becomes a financial lifesaver. What Exactly Is Credit Shortfall Insurance?

Homeowners’ Associations (HOAs) play a vital role in managing and maintaining residential estates across South Africa, from security and landscaping to the upkeep of shared infrastructure. Yet, one of the most misunderstood areas of HOA governance remains insurance . Ensuring that the association, its Directors, and members are adequately protected is not only a legal responsibility but also a cornerstone of sound financial management and risk mitigation. Why Insurance Matter

In South Africa, Homeowners’ Associations (HOAs)  are increasingly recognising the importance of proactive financial and maintenance planning. While 10-year maintenance reserve plans  are not legally required for HOAs, unlike for sectional title schemes under the Sectional Titles Schemes Management Act (STSMA)   they are fast becoming a hallmark of well-managed, future-focused communities. Forward-thinking Directors and managing agents are adopting these plans not only to imp

(This article has not been written by a representative of MONO.insure - Permission has been obtained to share the content) In the digital era, claims against small businesses are no longer limited to the classic “slip-and-trip” incidents at the premises. Increasingly, risks are becoming far more complex, extending into areas like media liability. The rise of user-generated content, social media and online publishing has dramatically increased the risks of copyright infringem

Whether you're buying your first home, investing in a rental property, or running a business from commercial premises, you'll encounter the terms “buildings cover”  and “buildings combined.” With South Africa’s growing trend toward sectional title living, security estates, and mixed-use developments , understanding exactly what this insurance covers and what it doesn’t has never been more important. What’s the Difference? Here’s the truth that might surprise you: there isn’t

At 2:47 AM, hackers compromised the smart building management system of a Umhlanga complex. By 3:15 AM, they'd disabled the electric fence, unlocked the basement access gates, and disarmed the alarm system. By 4:00 AM, five units had been burgled. Total loss: R890,000. The body corporate's insurance claim was declined. The reason? "Cyber event causing physical loss." The building insurance policy covered burglary, but not burglary facilitated by hacking. The cyber insurance p

Your body corporate's insurance premium increased 18% this year. Your trustees negotiated hard, shopped around, and were told this was "competitive." Three months later, storm damage wreaked havoc on your building. The claim was declined. The reason? "Gradual water ingress" an exclusion buried on page 47 of your policy document. Welcome to the cover gap crisis facing South African sectional title schemes in 2025. The Perfect Storm South Africa's climate is changing faster tha

In an unpredictable world, safeguarding your assets and financial well-being is paramount. For homeowners and those living in community schemes, personal liability cover isn't just an option – it's a necessity. This article will walk you through the essentials of personal liability insurance, helping you understand its importance, what it covers, and how it protects you from potential risks. What is Personal Liability Cover? Personal liability cover is a crucial component of

In a country as vibrant and diverse as South Africa, our homes are more than just four walls and a roof. They're where we gather for Sunday braais, where our children take their first steps, and where we find sanctuary after navigating the hustle of city traffic or the stunning coastal roads. Protecting these precious spaces and the lives we've built within them isn't just smart financial planning, it's about securing peace of mind for you and your family. Let's talk Personal