What Is Insured? Pt 4
WHAT IS INSURED ON MY POLICY? – Community Schemes Part 4
This week is our last week looking at the breakdown of a body corporate policy schedule and what is insured on it.
Today we focus on the Extra Cover that is on the policy schedule that is automatically included as an add on benefit and what this means.
- ARSON, THEFT, VANDALISM OR MALCIOUS DAMAGE REWARD
- Here the insurer will pay a reward for information leading to the conviction of any person for arson, theft, vandalism, or malicious damage in connection with damage covered by this section.
- EMERGENCY ACCOMODATION
- The insurer will pay a reasonable costs of alternative emergency accommodation if a unit owner of a residential unit cannot occupy the unit for its intended purpose. This is limited to R 1000.00 per day per unit for a maximum of 7 days.
- ESCALATION CURRENT INSURANCE PERIOD
- This is escalation allows for an increase of 10% in the sum insured to cover any unexpected costs arising from future fluctuations in the current insurance period from inception date or renewal date.
- ESCALATION FURTHER REINSTATEMENT PERIOD
- The sum insured of the building will be increased by 10% to the cover for unexpected costs arising from future fluctuations on the occurrence of any damage, the sum insured as at the time of the loss that is specified against this section.
- GENERATOR HIRE
- This cover is in the event of damage to any electrical reticulation installed at the insured property and it becomes necessary to hire a generator to continue to provide electrical power to the insured property as it existed prior to the event. It is limited to the amount of R 15 000.00
- HOME MODIFICATIONS FOLLOWING A DISABILITY
- This cover is limited to R 20 000.00, and it is there for any modifications that need to be made to the property where the insured have permanent resistance where the disability was caused by the damage to the property.
- LANDSCAPED GARDENS
- This is limited to R 10 000.00 and the cover is in place for any damage that may occur to landscaped gardens, the cover is extremely specific as to what damages will be entertained so it is always wise to check with your broker the damage for which one could claim.
- LOSS OF RENTAL, REMOVAL COSTS AND ALTERNATE ACCOMODATION
- This refers to loss of rental or alternate accommodation in the event that an insured peril renders the unit uninhabitable (this is not in terms of inconvenience but has to be unsuitable for living in terms of health risks or the unit has been completely destroyed etc.) or untenantable. This is limited to 30% of the total sum insured of the complex as a whole, however there is an extremely specific formula as to how the figure is arrived at so before finding this accommodation it is wise to speak to your broker about this.
- REMOVAL AND STORAGE OF UNDAMAGED HOUSEHOLD GOODS
- Should the applied alternate accommodation or emergency accommodation be needed this section covers the owner if they needed to remove and store items that were not damaged to await the completion of the repairs to put the unit back in a habitable position. The limit of cover is R5000.00.
- MEETING ROOM HIRE
- Here the insurer will pay for the cost to hire a meeting room up to R 2500.00 for an annual general meeting or a committee meeting, where the designated meeting room cannot be used as a result of damage to this room.
- If the unit is damaged to such an extent, it is not habitable then this will cover the cost to board pets or security dogs up to a limit of R 2500.00.
- REMOVAL OF TREES
- This is the cover to pay for the removal and disposal of trees and branches that has fallen onto and caused damage to the insured property. There is no cover normally for the removal or disposal of tree stumps or roots. However just check with your broker on the cover that is in place here. This is limited to the amount of R5000.00
- RESTORATION OF RECORDS
- Here this cover will pay for the cost of collating information, preparing, replacing, rewriting, and restoring of your damaged records and electronic data. This is limited up to R 5000.00.
- SECURITY GUARDS
- Here the insurance company will pay for the reasonable costs of employing temporary security guards to safeguard the property, if the costs are necessary to prevent further damage or ensure that the properties security is not compromised. For example, if a boundary wall is driven into an additional security guard may be employed to sit at that section of the wall to guard it whilst the repairs of being completed. This cover is limits to R 7500.00.
- WATER REMOVAL AND DEHUMIDIFYING
- The insurance company will pay where approved by themselves for the removal of water and dehumidification of the building following damage caused by water. This is limited to R 5000.00.