Special Conditions | Recommendations | UnderInsurance | Safety Tips | Going on Holiday? | Geysers

SPECIAL CONDITIONS PERTAINING TO SECTIONAL TITLE, HOMEOWNERS ASSOCIATION AND COMMERCIAL & INDUSTRIAL BUILDINGS POLICIES

1. Fire extinguishing equipment must be installed and be maintained under an annual service contract. Where applicable the local Fire Department will provide details of their minimum requirements.
2. All buildings must be compliant with National Building Regulations and / or Local Authorities requirements.
3. Disclaimers must be erected at entry and exit points advising that the building owners will not be liable for loss of or damage to property or death or injury to any person.
4. If any property is left unoccupied for more than 30 consecutive days then all cover for theft and malicious damage is suspended. If the damage occurs during the initial 30 day period of unoccupancy then the insured shall become a co-insurer for 20% of any claim. If the insured applies to us for continuation of cover for theft and malicious damage then we will consider this subject to appropriate terms and conditions.

RECOMMENDATIONS

1. When a property is to be left unoccupied the insured should turn off water at the mains.
2. In the event of any change to the occupancy of a property we must be advised immediately as failure to advise us of any such change could prejudice the insured in the event of a claim.
3. We regard a property as being vacant when the insured has vacated the premises or where the premises are let and no new tenant has been found. Vacant shall therefore mean that there is no new tenant to take over occupancy of the building or the vacated portion. Tenancy can only be proved by way of a signed lease.
   n such circumstances we recommend that 24 hour guards and / or an alarm be installed in order to prevent loss or damage by thieves or persons with malicious intent.
4. Gutters and balcony overflow pipes should be cleared of leaves etc before the commencement of the high rainfall season.
5. Geysers and associated pipes and pressure valves should be checked annual for damage, wear and tear. A plumber will undertake such a check at nominal cost.
6. Walls are not insured against flood rain or storm damage unless they have been designed and constructed in accordance with standard building requirements. This especially pertains to retaining walls. Ensure that any such walls have been built to standard.
7. Loose and defective roof tiles can be the cause of internal damage to ceilings. Ensure that roofs are checked annually for damage or defects.

UNDERINSURANCE

When you are underinsured it means that you will receive less than the true cost of repair or replacement in the event of a claim. For Sectional Title property owners it is essential that you add to your unit value any additions or up-grades you may undertake to your property such as:

• General renovations
• New kitchens and bathrooms
• New flooring especially laminate or solid wood flooring

All of these could increase the value of your unit in which case the sum insured must be increased accordingly. Remember that each unit is subject to average individually.

WHAT IS AVERAGE:

If your sum insured is less than its’ actual replacement value then you are considered underinsured. The following is an example of underinsurance:

VALUE OF THE PROPERTY	R1,000,000
ACTUAL SUM INSURED	R750,000
CLAIM	R100,000
SETTLEMENT	R100,000 x R750,000
	R1,000,000
ACTUAL AMOUNT DUE	= R75,000

MAINTENANCE OF YOUR PROPERTY and SAFETY TIPS

Your insurance policy is not a maintenance contract and we are not liable for wear, tear and gradual deterioration of your property OR damage resulting therefrom. We are also not liable for loss or damage arising from poor design or faulty materials used in the construction of your property. Ensure that:

• Your roof is inspected for missing tiles or leaks.
• Window and sliding door frames are watertight.
• Gutters and drains are clear of debris such as leaves.
• Leaks are attended to as soon as you become aware of them.
• Dripping pipes / taps are repaired before they burst and cause damage.
• Patios have been designed so that water drains away from your home.
• Your electrical installations are in good order – check circuit breakers, plugs and switches and also please do not overload plug points with extension cords and extra plugs – MOST FIRES ARE THE RESULT OF ELECTRICAL FAULTS.
• Check domestic gas heaters – especially the rubber hose connection to the gas cylinder – before the onset of winter.
• Electric bar heaters are turned off at the socket after use and do not use them for drying washing etc – this is very dangerous!

GOING ON HOLIDAY OR LEAVING YOUR HOME UNNOCCUPIED?

• Tell a neighbour and your security company. Leave keys with someone in case of an emergency.
• Switch off your geyser.
• Turn your water off at the mains – take time out to find your mains stop cock (it is usually next to your water meter).

GEYSERS

Geyser replacements and repairs are the single largest component of claims handled by us. Managing these costs, whilst attempting to maintain premiums at reasonable levels, has been a major challenge for FIRSTPROP over the past 18 months. The fact is that if claims continue at the current pace and cost then either premiums will continue to rise or the amount of cover provided will have to reduce.

Owners are encouraged to attend to maintenance of geysers but we do understand that this is not always easy. In terms of the Sectional Titles Act owners are responsible for their own geysers and the onus is therefore on them to attend to such issues as replacement of the self sacrificing anode. A plumber can attend to this at a reasonable cost and such action can help avoid unnecessary failure of geysers.

A final point is that whilst we, your underwriting manager, will replace a geyser that has failed and also pay for resultant water damage, the inconvenience of water damage to ceilings, cupboards, floors and carpets can be considerable. This can all be avoided by:

• Ensuring that the a drip tray is installed (this is an SABS requirement).
• Making sure that geyser overflow pipe is fitted to enable escaping water to flow outside the building.
• Have your geyser regularly serviced – every 3 years is recommended.