Reviewed · TitanDC
A freehold house: everything is yours
Own a standalone house and the structure, the fittings and the contents are all your responsibility. Buildings cover and contents cover are usually separate sections of the same policy, and a bond holder will generally insist on the buildings half.
- Buildings: the structure, roof, fixed fittings, walls, gates and usually the pool
- Contents: everything you would take with you if you moved
- All risks: items you carry off the property, such as a laptop or jewellery
- Liability: what you owe someone injured on your property
A sectional title unit: the scheme owns the shell
In a sectional title scheme the body corporate must insure the buildings and improvements to common property for their full replacement value, and that policy is funded by your levies. You insure what sits inside your section and your own liability. You are paying for building cover already, through the levy.
- The scheme: structure, roof, external walls, common areas and common services
- You: contents, fittings and finishes within the section, and personal liability
- You: an all-risks section for what leaves the property with you
- Ask the managing agent for the policy schedule — you are entitled to know what you are funding
Where the boundary actually falls
The sectional plan defines a section by the median line of its walls, floors and ceilings, which is why the answer is rarely intuitive. These are the items that generate the most disputes.
- Geysers: often the owner’s, even though the damage is the building’s
- Built-in cupboards and kitchen units: frequently treated as the owner’s finishes
- Internal non-structural walls: usually within the section
- Windows and external doors: commonly the scheme’s, but not always
- Balconies, exclusive-use areas and carports: depends entirely on the plan and the rules
- Floor coverings: tiles bonded to the slab are often the scheme’s; carpets are yours
What owners commonly get wrong
These are the gaps that appear at claim time, and each of them is avoidable on a quiet afternoon.
- Insuring the building again, and paying twice for cover the levy already funds
- Assuming the scheme’s policy covers the contents of the flat — it does not
- Never checking the scheme’s sum insured, then sharing the shortfall through a special levy
- Holding no personal liability cover because "the scheme has liability cover" — that one covers the common property
- Letting a bond holder’s requirement go unanswered because nobody knows which policy applies
Common questions
Do I need buildings insurance in a sectional title scheme?+
Generally no. The body corporate is legally required to insure the buildings and improvements to common property, funded by levies. You insure your contents, the finishes and fittings within your section, and your personal liability.
Does the body corporate insure my kitchen cupboards?+
Often not. Fittings and finishes inside a section are commonly the owner’s, while the structure is the scheme’s. Because it depends on the sectional plan and the rules, it is worth confirming in writing rather than assuming either way.
My bank wants proof of buildings insurance for my flat. What do I send?+
Ask the managing agent for the body corporate’s policy schedule and, where the bank requires it, a confirmation noting the bank’s interest. A separate buildings policy on the unit is usually unnecessary and duplicates cover the levy pays for.
What is an exclusive-use area, for insurance?+
A part of the common property that one owner has the exclusive right to use, such as a parking bay, a garden or a storeroom. It typically remains common property the scheme insures, while what you keep in it is yours — but the rules can allocate responsibility differently.
Who insures a freestanding house in an estate?+
In a home owners’ association the individual house is usually the owner’s to insure, unlike a sectional title scheme, while the association insures common areas and its own liability. The governing documents decide it, so check them rather than assuming the sectional title answer applies.
Sources
This page cites the legislation and regulators it relies on, so you can check it.
General information about property insurance in South Africa, not advice. The split between a scheme and an owner depends on the registered sectional plan, the scheme rules and the policy wordings. TitanDC is an authorised financial services provider, FSP 8972.