Whether it’s a burst geyser, storm damage, or any of the unexpected issues that come with property ownership, having the right cover, and knowing how it works, is essential for both trustees and owners.
At FMS Property Managers, we understand that navigating property insurance can be complex and stressful. By partnering with Claims Facilitation Services (CFS), a trusted member of the Faircape Group, we help take the hassle out of the insurance process.
What Does Building Insurance Cover?
In sectional title schemes, building insurance typically covers damage to the structure of the property. This includes common claims such as burst geysers, and damage caused as a result of storms, fires, and flooding which can affect the building as a whole. In these cases, insurers tend to cover damage to ceilings, roofs, and communal areas.
It’s important to understand that building insurance does not cover damages caused by wear and tear, neglect or lack of maintenance and any mould caused by poor ventilation. It also does not include damage to personal contents including furniture, appliances and clothing. These would fall under separate contents or home insurance policies.
Understanding Excess
When you lodge an insurance claim, an excess applies. This is the portion of the claim that the policyholder is responsible for paying and different claims carry different excess amounts, which are determined by the insurer’s policy.
Some insurers may also apply specific limits to certain types of claims, such as geyser replacements. These limits are outlined in your policy schedule and may affect how much the insurer will pay out. For instance, even if a geyser replacement costs R6,000, the insurer may only settle up to the specified limit, regardless of the actual invoice. The balance, along with the applicable excess, may then be for the policyholder’s account.
How CFS Adds Value
CFS specialises in the administration and facilitation of insurance claims within sectional title schemes. Their expertise ensures that claims are handled swiftly, transparently, and in line with industry best practices. They assist by:
- Lodging and tracking insurance claims on behalf of the body corporate or managing agent
- Ensuring clear communication with the relevant parties. Depending on the nature of the claim, this could be either the unit owner, rental agent, estate administrator, portfolio manager, or trustees.
- Managing documentation and compliance for audits and reporting
- Resolving insurance related disputes or shortfalls that may arise
By working alongside CFS, FMS Property Managers ensure that the claims process is seamless, reducing the administrative burden on trustees and helping owners receive fair and timely outcomes.
Why Timely Reporting Matters
One of the most common reasons claims are rejected is delayed reporting. If damage caused by a burst pipe, storm fire occurs for example, it is important that it is reported within 30 days of the incident.
Acting quickly can help prevent further damage and unnecessary costs to the owner or scheme. However, whilst prompt action improves the chances of a smooth claims process, it’s important to note that not all claims are guaranteed to be accepted. This will depend on whether the cause of the incident falls within the scope of the policy cover.
The Bottom Line
Insurance is an important part of any well-managed property, but it only works effectively when claims are properly administered and understood. At FMS Property Managers, we believe in equipping our clients with the knowledge they need to make informed decisions. Through our partnership with CFS, we’re able to offer peace of mind by ensuring insurance processes are managed professionally, claims are handled efficiently, and trustees and owners are kept informed at every stage.
To learn more about how CFS supports our portfolio or to enquire about a specific insurance matter, please contact your FMS portfolio manager or visit:
www.faircape.co.za/our-brands/claims-facilitation-services