Many sectional title owners renovate and upgrade their units over the years with the aim of adding to their living comfort and market value. These owner-installed upgrades often pose a challenge when determining the replacement cost to insure a sectional title scheme.

This blog comprises a number of typical customer complaints that we deal with on a regular basis. Along with these complaints, we include our responses for easy reference and insight into common insurance valuation matters.

Here is what the Sectional Title Schemes Management Act (STSM) No. 8 of 2011 says about insurance and – more specifically – what a sectional title valuation ideally should entail.

“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 replacement valuation to the annual general meeting.” Who will enforce this rule and ensure that the body corporate has sufficient cover?