Addsure - FSP 15269

New FIDCURE website

2011-09-05T22:51:00.000+02:00

Nice new website http://www.pima.co.za/ explains as simply as possible, the need for TRUSTEES to consider a FIDELITY GUARANTEE in terms of prescribed rules.
The FIDCURE product meets the needs of rule 29.2.b with added benefits at a very competitive price / premium.
A Mutual and Federal Insurance Co Limited / Lloyds insured product brought to Addsure clients by underwriting managers Camargue.

Durban Launch

2011-08-20T08:07:00.000+02:00

Addsure's Durban office launch was very well received yesterday. Roger Bentley, liability insurance expert, spoke to us about "Transient Agents" and "Liability". What an interesting discussion.
Bruce Gibson, Addsure's Durban Manager and Financial Advisor, introduced Addsure and Mike Addison chatted about Addure's exclusive Fidelity and PI product.
Addsure now has a very clear national footprint and look forward to being of more service to managing agents and bodies corporate in KZN!
More workshops and training on the cards for Addsure supporters soon!

BBN - Preparing youth for business

2011-07-24T21:14:00.000+02:00

Saturday mornings at Addsure's Cape Town Office is a buzz with computers clicking away as learners from the Mountain 2 BBN Sinenjongo group learn computer skills!
This week successful businesswoman Shirley Baillie popped in and shared some of her success formulaes with our learners - words of wisdom! Thank you Shirley!

Addsure Update

2011-07-24T20:45:00.000+02:00

Been a busy month....
Well done NAMA Western Cape - 80 odd delegates at friday's 120 in begvliet - a great presentation on rules and the new Act by Judith van der Walt.
Addsure Durban well underway - looking forward to our KZN seminar on 19 August - our Durban "launch"!
Lots more happening in Jhb - keep an eye open for seminars there soon!
Great fun and games in Cape Town too - more workshops coming up.
Addsure's BBN participation also going well - 20 odd learners move on to Mountain 2! This is rather exciting stuff too! see http://www.bbn.co.za/ and http://www.bbnlearners.blogspot.com/

Davis Langdon Handbook 2011 now available

2011-07-02T22:53:00.000+02:00

This handy booklet is available at Davis Langdon offices or downloadable from their website http://www.davislangdon.com/upload/StaticFiles/AFRICA%20Publications/Research/Property%20&%20Construction%20Handbook%202011_Africa.pdf

This booklet is very handy - besides building rates per sqm to determine replacemnt values, other tables such as Cost Indices (page 60) most interesting for considering levels of escalation.

More about valuations / sums insured at our workshops!

BBN LEARNERS

2011-06-26T21:33:00.000+02:00

Keep an eye on our Sinenjongo High School learners progress through the Five Mountain program on our sister blog http://bbnlearners.blogspot.com/
Addsure have taken up the challenge to see a group of learners through the amazing BBN mentorship system. The idea is that South African businesspeople get behind our youth and communities, build bridges and encourage entreperneurship and success. This program offers a serious response to many of our country's problems by helping create job creators rather than job seekers. If this program can be multiplied around the country asap, WOW! See http://www.bbn.co.za/ and http://www.bbnlearners.blogspot.com/

Addsure Eleven

2011-06-21T23:34:00.000+02:00

South Africa's leading sectional title insurance team welcomes Bruce Gibson on board!
Bruce Gibson, well known and experienced sectional title insurance specialist, joins Addsure with effect from 1 July 2011. Bruce joins as Financial Advisor / Regional Manager KZN. Exciting times!

Latest....

2011-06-12T18:46:00.000+02:00

Fidelity Cover
Addsure's Fidely Guarantee product for bodies corporate (FIDCURE) is now even more accessible as managing agents get themselves underwritten.
After the CSTM debacle, the fidelity issue has become a hot discussion topic.
Addsure and a few key managing agents will host a saturday workshop on "Fraud, Dishonesty and choosing a managing Agent" in Randburg/West Rand very soon - watch this space!
Durban Branch
Addsure opens an office in Durban from 1 July....more about this and a launch soon....this should turn a few heads!

LATEST NEWS

2011-05-18T19:44:00.000+02:00

Quite a bit happening in the sectional title insurance arena!

1) STILUS and CSURE team up with mini -Stilus clip on option - soon to be launched!
2) CIA offer Addsure clients a great value offer - free valuations for policy holders - subject to conditions of course!
3) FIDCURE Fidelity Gurantee catching on - New Exciting re-launch with some good news soon!
4) NAMA INDABA a huge success! Some interesting stuff emerged!
5) NAMA Trustee Training In Cape Town on 28 May 2011!
6) NAMA - Affiliates in Cape Town get together and plan great things - watch this space!
7) BBN - Addsure supporting BBN initiative - join in!
8) Paddocks Club - http://www.paddocksclub.co.za/ - excellent content - I've joined - have you?
9) Key Word Access - New book out soon with recent changes - Shirley 011 8833253
10) Nina Venish joins Addsure - welcome Nina!

BBN - lets support the initiative!

2011-05-15T15:04:00.000+02:00

Addsure has put itself behind BBN, a bridge building initiative started by businessman Joe Cook. See http://www.bbn.co.za/ for more about this.
Basically, BBN is designed to get businesses behind youth, especially the less fortunate so thet we (businesspeople) can mentor young learners into becoming South Africa's job creators rather than adding numbers to the unemployed.
We have always felt that donations, effort etc should go towards job creation - BBN hhas hit the nail on the head - all it needs is business behind it - Addsure is fully committed - come join us!
See http://bbnlearners.blogspot.com/ for more

Cheers from Addsure!

2010-12-22T10:08:00.002+02:00

The Addsure team enjoying an annual year end lunch at Nitida last week!

Wishing everyone a safe and happy holiday season - see you all back in 2011!

Latest Sectional Title Insurance News

2010-10-13T23:56:00.004+02:00

* STILUS levy guarantee product well underway - Addsure and Annette Laing Properties proudly assist the body corpoarte of Camargue be policyholder number 0001 !

* FIDCURE body corpoarte fidelity guarantee perking much interest! At last a product to meet the needs of qualifying clients in terms of rule 29.2(b)

* GEYSER WORKSHOPS SOON - watch this space

* 2010 ANNUAL A-Z INSURANCE WORKSHOPS at main centres soon

* VALUATION WORKSHOP in Johannesburg and Cape Town coming up

* MORE WORKSHOPS IN PE SOON!

STILUS LAUNCH - CAPE TOWN

2010-08-18T19:00:00.003+02:00

Addsure clients can register with STILUS to attend a launch of the new STILUS product - first come first served basis - Vicky Vermaak vicky@stilus.co.za
When? Saturday 28th August
Where? Crystal Towers Hotel, Century Boulevard, Century City
time? 08h30 to 12h00

STILUS - DAWN OF A NEW ERA

2010-06-19T22:34:00.003+02:00

Addsure is pleased to announce its agency agreement with STILUS, a brand new underwriting manager for SANTAM LTD.
STILUS offers a stand alone insurance policy for bodies corporate whereby levy payments are guaranteed. Addsure are presenting and hosting workshops on this to managing agents and trustees in the weeks ahead - keep an eye on http://www.addsurediary.blogspot.com/, the ADDSURE facebook page http://www.facebook.com/#!/group.php?gid=394532615192 and this page for more.

NAMA SEMINAR SATURDAY 29th May, Cape Town

2010-05-24T15:23:00.004+02:00

Don't forget about the NAMA (National Association of Managing Agents) hosted training seminar for trustees.
This is being held at the CTICC (Cape Town International Conference Centre) on Saturday the 29th May 2010 and the speaker is well known specialist in sectional title legal affairs, Mr Tertius Maree.
Tertius Maree will cover quite a few aspects of sectional title for trustees as well as some of the proposed changes to the Sectional Titles Act.
Bookings can be made via the local secretary for NAMA, Johnine Pretorius, who can be contacted on 021 9148108, email namawp@mweb.co.za

2010 THE YEAR OF THE GEYSER

2010-05-18T07:23:00.004+02:00

See article on anodes and the challenge facing sectional title trustees, managing agents, insurers to keep premiums reasonable and sustainable. See Paddocks Press April 2010 by clicking via http://www.sto.co.za/ - also featured in the Property Section of Weekend Argus 15 May 2010.
Claims ratio and dealing with geysers will feature in our workshops in the months ahead.

May Events

2010-04-25T18:21:00.003+02:00

Take a look at Addsure Events http://addsurediary.blogspot.com/2010/04/workshops-events-may-2010.html

Among these are:

Marina Constas in Cape Town on 15 May
Addsure workshops in Sandton on 19 May
Addsure Workshops in Cape Town on 25 May
NAMA workshop in Cape Town on 29 May

Huge insurance launch early June "Dawn of a new Era" watch this space.

Liability and common property

2010-04-06T08:38:00.004+02:00

Following a few workshops and discussions on disclaimer boards and property owner's liability, we strongly recommend that disclaimer boards around common property be properly attended to. More importantly is housekeeping and making sure that safety around the property is taken care of. We cannot over emphasise safety needs around swimming pools, gates, springs etc.

CAPE TOWN SEMINAR 10 APRIL 2010

2010-03-25T14:52:00.003+02:00

Rule 29 2 b FIDELITY COVER

2010-02-03T18:15:00.003+02:00

As the effects of the recent downturn in the economy pinch harder in many arenas, so the risk of fraud and dishonesty increases. How ieasy is it to 'borrow' funds that do not belong to one but to which a person has access to control over? Whilst we trust those in positions of trust, the reality is that funds do go missing. Trustees of Bodies Corporate are obligated to bring this matter to a General Meeting in terms of rule 29.(2)(b). At such a meeting a decision can be taken as to how much Fidelity cover should be taken, if any needed at all. For example, if monies are held in the managing agents trust account, and the managing agent is up to date with their dues to the Estate Agents Affairs Board (EAAB), then such may not be necessary, emphasis on "MAY".
Alternatively, if the managing agent or the trustees have control over the body corporate's account and/or investements then it would be prudent to purchase a Fidelity Guarantee such as FIDCURE available to bodies corporate where their managing agent has appropriate cover and has been underwritten by Phoenix underwriting managers for Compass Insurance Company Limited. there have been far too many dishonest acts recently to ignore this. Trustees, beware!!!

EXCESSES and RULE 29.4 after one year?

2010-01-13T11:48:00.002+02:00

The not so new rule 29.4 has been with us for a year now. Many of our client managing agents and self managed trustees attended workshops we arranged this time last year, together with input and joint presentation with expert attorneys around the country.
Are we implementing special resolutions per the rule?
It is very pleasing and rewarding for us to see the fruits of our extra efforts in this regard. Many body corpoarte clients have since passed their special resolutions iro specified damage.
Well done - Profesionalism all round!

HAPPY NEW YEAR

2009-12-31T14:41:00.002+02:00

Here's wishing all Addsure clients and followers of this blog a happy and prosperous new year!

ADDSURE DIARY

2009-12-28T12:19:00.002+02:00

Keep an eye on the Addsure diary during 2010.
The diary page will be updated on an ongoing basis as events and workshops are planned and confirmed for the months ahead.

www.addsurediary.blogspot.com

KEY-WORD ACCESS

2009-12-21T10:24:00.002+02:00

Check out this extremely useful book which allows quick access to the part of the Act or rules you are looking for. A must have at meetings.

Take a look at http://www.sectionaltitlesact.co.za/ and order your copy - discounts for NAMA members!

SWIMMING POOL SAFETY

2009-12-20T21:14:00.005+02:00

Holiday season is upon us and thousands of owners, tenants, visitors will take to common area swimming pools this summer. How is your common area swimming pool safety?

Here's a photo taken recently of a swimming pool gate latch rusted open in a body corpoarte environment - how are your pool gate latches, locks and springs doing?

Never mind public liability insurance - lets not risk any toddler's life - trustees, check your pool area for all safety aspects!

ADDSURE NOW ON FACEBOOK

2009-12-20T19:10:00.002+02:00

We are presently upgrading and updating Addsure's prescence in the internet.
It is our intention to be far more net-active from the beginning of 2010.
An Addsure Facebook Group is part of the plan http://www.facebook.com/posted.php?id=394532615192&share_id=238593515655&comments=1#/group.php?gid=394532615192

See you there!

NEXT WORKSHOPS

2009-09-28T01:18:00.003+02:00

NAMA BREAKFAST WESTERN CAPE

2009-09-24T14:07:00.004+02:00

Friday 18th saw more than 40 members attend NAMA Western Cape's first monthly breakfast session. Thanks to Plascon, W Voigt and Topnotch, a most interesting talk on products and compliance by the sponsors. Next one to be held in the Southern Suburbs on Friday 16th October - see you all there!

DISCLAIMER BOARDS

2009-09-08T08:17:00.004+02:00

Go to http://addsureaboutdisclaimerboards.blogspot.com for examples. We believe there should be a disclaimer board/s at the entrance, around parking areas, around swimming pools, jacuzzis, gyms, water features, electric fences, playing areas etc. Some policy wordings actually stipulate disclaimer boards as a condition of cover.

BREAKFAST IN BEDFORDVIEW

2009-09-08T08:13:00.002+02:00

A breakfast / coffee social for Addsure clients at 09h30 on Thursday 10 Sept 2009 at Garden Court, Eastgate.

Paddocks Law of Sectional Title Meetings Course

2009-08-16T17:06:00.002+02:00

Personal recommendation - I am busy with this most enjoyable online course and can honestly say, it's worth every cent! Although prescribed management rules set out many of the requirements and formalities, this course also drills into various aspects of common law and other broader aspects such as minutes, formalities etc not set out in PMRs. A "must do" for managing agents, portfolio managers, serious roleplayers such as trustees of larger schemes, self managed complexes etc.
see www.paddocks.co.za

NAMA Western Cape

2009-08-16T16:58:00.003+02:00

Congratulations to Franz Holm for being voted in as the Western Cape Chairperson again. A true vote of confidence. A fresh, larger and wider committee have also been voted in who are anxious to get a "dynamic and action packed NAMA" going again in the Western Cape. Professional Managing Agents - get yourself membership asap. Affiliated members are encouraged to join - come on industry players - come on board!
www.namasa.co.za namasa@iafrica.com for the time being.

NAMA WESTERN CAPE - 12 AUG 2009

2009-07-27T16:58:00.001+02:00

Wednesday 12 August @ 13h00
Stellenberg High School, 111 Panarama Drive, Stellenberg
IMPORTANT MEETING - SPECIAL AND AGM
We urge managing agents to join and existing members to attend.
Lets make the Western Cape the most vibrant NAMA region! BE THERE!

LATEST DEMISTIFYING SECTIONAL TITLE BOOK NOW AVAILABLE

2009-07-27T13:25:00.003+02:00

See message from Marina Constas' office today (27 July 2009) :

"Herewith is the cover of the latest “hot-off-the-press” edition of the Bestseller – “Demistifying Sectional Title“ – Second Edition – available at the following Exclusive Books Stores : Sandton, Eastgate, Bedford Centre, Hyde Park and Pretoria, and selected CNA’s from this week. Coming to the rest of the country soon."

LATEST PERSONAL FINANCE ARTICLE

2009-07-21T18:30:00.004+02:00

Go out and purchase the latest (Third quarter 2009) Personal Finance Magazine to find a useful article on insurance claim issues pertaining to sectional title! An easy read and mind-opening overview of the insurance claiming process and related conflicts.

CAPE TOWN WORKSHOP 21 JULY 2009

2009-07-14T09:03:00.002+02:00

Morning session fully booked so we are now also running an afternoon session from 13h00 to 16h30

This workshop is best suited for portfolio manager staff, administration staff who deal with insurance and claims administration in the office.

This popular workshop is a more practical approach to sectional title insurance with the delegates working with a case study or two taking all the steps from A to Z.

The 2009 workshop includes updates, how to deal with new rule 29.4 and more new stuff.

Next Managing Agent Workshop Cape Town

2009-07-06T11:40:00.004+02:00

The next workshop for managing agents / portfolio managers on sectional title insurance will be held at our new venue (C1 Centurion Business Park, Milnerton) on Tuesday 21 July 2009.

Time: 08h45 to 12h30

Duration: 3½ hours

Subject: Sectional Title Insurance – Managing Agents / Portfolio Managers

Content: Case study format. A to Z - Dealing with insurance

Venue: Unit C1 centurion Business Park, Bosmansdam Rd, Milnerton

Cost: R500 per delegate / No charge for Addsure clients

R.S.V.P. by Friday 17th July, latest. Bookings done on a first come, first served basis.
021 5515069

THE ADDSURE TEAM

2009-06-25T07:56:00.003+02:00

Back: Brian, Bridget, Claire and Mike
Front: Sarah, Florence, Brenda and Emmie

Just a glimpse of the of the "Addsure Eight" team with whom Addsure clients interact with.

Our office is situated at A1 Centurion Business Park, Bosmansdam Road, Milnerton, Cape Town and our new Conference / Meeting Room Facility at C1 Centurion Business Park. Look forward to seeing you there soon!

FIDELITY GUARANTEE FROM ADDSURE!

2009-06-16T14:20:00.002+02:00

At last, a solution to being able to comply with PMR 29.(2).(b)

We all know that the EAAB Fidelity fund covers money HELD IN TRUST only.

We also know that the minimum cover offered by some sectional title insurance underwriting managers only covers TRUSTEES and EMPLOYEES (NOT MANAGING AGENTS DISHONESTY) up to between R20,000 and R50,000. Additional cover here normally costs about R5,000 per annum per R100,000, if the insurer is prepared to consider this.

The problem has been how a body corporate should cover themselves against a manging agent's dishonesty where the managing agent signs or co-signs on the body corporate's own bank account. Up to now that is.

Addsure client managing agents can now offer their client bodies corporate FIDCURE™ costing R2,000 per annum per R1,000,000 covered covering against BOTH the TRUSTEES AND MANAGING AGENT dishonesty. The client managing agent must have PIMA and FIDELITY extension to qualify.

This breakthrough, initially being offered exclusively to Addsure clients, will be launched nationally soon.

LATEST - FIDELITY COVER

2009-06-08T23:25:00.003+02:00

PMR 29.(2).(b) reads:

…the trustees shall take all reasonable steps
(b) to procure to the extent, if any, as determined by the members of the body corporate in a general meeting, a fidelity guarantee in terms of which shall be refunded any loss of moneys belonging to the body corporate or for which it is responsible, sustained as a result of any act of fraud or dishonesty committed by any insured person being any person in the service of the body corporate and all trustees and persons acting in the capacity of managing agents of the body corporate;

Addsure can now provide Addsure client managing agents with the full cover required ito this rule.

Watch this space for product launch and pricing soon to be announced!

REPLACEMENT COSTS

2009-06-03T00:31:00.002+02:00

Interesting fact - BER Building Inflation Rate for 2008 = 18.3% - published!
Take care - your insurance polcy might have just renewed with no or very little increase in sum insured. Insurers will by default most likely increase sum insured by 10% on renewal.
So what? ..........implication is then that you would be underinsured by 8 odd percent straight away. Take care, 2009 replacement values need to be looked at more carefully - onus on trustees here!

NAMA PRESENTATIONS CAPE TOWN

2009-05-31T23:02:00.002+02:00

Friday 5th June 2009, CAB Conference Centre, Brackenfell 08h30 to 12h30

Marina Constas will be talking about Debt Collection and a short presentation on the latest Insurance news and Rule 29.4 will be presented by Addsure.

Look forward to seeing you there!

Mike and Brian Addison

LATEST FOR ADDSURE CLIENTS

2009-03-25T14:42:00.004+02:00

Very exciting and being rolled out very soon:
1) Fidelity Cover for managing agents and extended Fidelity Cover for bodies corporate
2) Subsidence and Landslip Cover automatically included in the buildings policy
3) New set of trustee workshops at our NEW workshop/meeting venue!
Addsure clients will be given full details in due course.

NAMA KZN 13th March 2009

2009-03-20T08:55:00.002+02:00

We are not sure whether the sizzling hot room was because the airconditioner wasn't working or simply because there was heated debate and a hot topic! Some 80 managing agents and interested parties attended a NAMA seminar / workshop last week at the Blue Water Hotel, Durban where new Rule 29.4 was the main focus of attention. Addsure presented some background on claims history, premium and rate with the new rule change. Barbara Shingler provided an informative background to NAMA's reasoning for the new sub rule, and Marina Constas clarified a few issues and spoke about the other rule changes as well.

Follow up workshops will be provided for Addsure clients and their trustees. Watch this space!

TWO IMPORTANT RULES TO CONSIDER

2009-03-12T00:01:00.004+02:00

During 2009 we suggest that these 2 rules be discussed at AGM's and in most instances, provide 30 days notice for a special resolution to be passed in respect of specified damage for excesses.

Addsure will be hosting workshops on these matters. Watch this blogsite for more news!

VALUATIONS 2009 - DAVIS LANGDON HANDBOOK

2009-03-12T00:01:00.002+02:00

The latest Construction and Property handbook (2009) now downloadable from Davis Langdon's website http://www.davislangdon.com/upload/StaticFiles/AFRICA%20Publications/Research/AfricaHandbook_Jan2009.pdf

INSURED EVENT VS MAINTENANCE ISSUE

2009-03-08T23:47:00.001+02:00

It is under the sectional title banner where we seem to find most “misunderstandings” about what is and what isn’t covered under the building insurance policy.

Lets firstly take a look at some of the insured events trustees or the body corporate itself is obliged to insure against. In terms of the buildings they are:
(i) fire, lightning and explosion;
(ii) riot, civil commotion, strikes, lock-outs, labour disturbances or malicious persons acting on behalf of or in connection with any political organization;
(iii) storm, tempest and flood;
(iv) earthquake;
(v) aircraft and other aerial devices or articles dropped there from;
(vi) bursting or overflowing of water tanks, apparatus or pipes;
(vii) impact with any of the said buildings or improvements by any road vehicle, horses or cattle;
(viii) housebreaking or any attempt thereat;
(ix) loss of occupation or loss of rent in respect of any of the above risks;
It is under item (vi) “bursting” where most of the problems seem to arise!

In order to establish some clarity this issue, lets look at the policy wording of two of the main specialist sectional title insurers, CIA and C-Sure, which pertains to bursting of pipes:

CIA POLICY WORDING

Sudden and unforeseen bursting of water tanks, water apparatus (excluding geysers, which are more specifically insured under Section M - geyser Maintenance, and boilers) or water pipes, including damage thereto, but excluding loss or damage to any property caused by or aggravated by;

a) wear and tear or gradual deterioration, rust, corrosion, mildew or damp,
b) subsidence and landslip,
c) the insured's failure to take reasonable precautions for the maintenance and safety of the property insured and for the minimization of any destruction or damage.

C-SURE POLICY WORDING

Sudden and unforeseen bursting, overflowing or escape of water or oil from tanks, apparatus or pipes including any fixed water or oil-fired heating installation including damage to such tanks, apparatus or pipes but excluding all damage as a result of wear and tear and gradual deterioration.

So, quite clearly, a leak or drip or something "not sudden" would not be covered, specifically a leak caused by say a "pin-hole" or other deterioration over time.

TO SUMMARISE IN A NUTSHELL

1) BURST PIPE WITH RESULTING DAMAGE

Insurer should pay for the locating, repair of the pipe as well as the "putting back" e.g. re-tiling and replace any other "resulting" or "consequential" damaged areas e.g. ceilings damaged, carpet damaged etc.

2) DETERIORATED PIPE, SLOW LEAK, DAMP OVER TIME

Not an insurance claim - no sudden water damage, loss caused by deterioration.

3) DETERIORATED PIPE, BUT SUDDEN "COLLAPSE" OF PIPE - SUDDEN APPEARANCE OF WATER EG RUNNING, POOL OF WATER, FLOW OF WATER

Insurance will only pay for the consequential water damage e.g. the ceiling in flat below that was suddenly damaged. The location of the leak, the repair and the putting back of tiles etc - for the owner or if common property, the body corporate’s account.

Common water damage seen as maintenance issues, not insurance matters: bath traps leaking / dripping, shower waterproofing not working well, roots growing into waste pipes and causing damage over time, sealing (silicone beads) needing replacement, rising damp, roofing needing repairs etc.

The above policy wordings may well apply to your own freestanding home via your homeowner’s policy as well. The same or similar wording may apply. We are very comfortable with this. Believe it or not the insurer is not your maintenance plan but rather your insurer i.e. there to indemnify the insured against a defined event – very clear – something sudden and unforeseen as described above e.g. a fire, explosion, storm, bursting.

OHS AND SECTIONAL TITLE

2009-02-24T11:56:00.003+02:00

The matter of dealing with Occupational Health and Safety (OHS Act) is often debated. Many think that the body corporate's insurance will simply take care of these issues. Not so, take care - non compliance is a criminal offence and as such, non compliance would most likely amount to exclusions being applied pertaining to related claims. At recent workshops on insurance, this matter raised it's head once again and we promised to publish details of a safety consultant on this blogsite. Constructsafe is a consultancy who have done work for a number of our clients. A scan of their buisness cards / details are thus uploaded.

NAMA HOSTED INSURANCE WORKSHOPS

2009-02-23T21:01:00.004+02:00

Insurance Workshops held this last friday, hosted by NAMA Gauteng South Region was really enjoyed with great feedback. The new Rule 29.(4) was again discussed in conjunction with the Claims module. Interaction was great and we hope to see all again at future workshops. Addsure clients, watch out for the Client Workshops and Breakfast sessions. More about these in emails which we will send out in due course. Other matters such as the new BER figures when available to us as well as the outcome to the Woodworking Fire case discussed at friday's workshop will be made availble here at a future date. Well done Johann van Rensburg for such a well organised NAMA event!

New Prescribed Management Rule 29.(4) - The wording

2009-02-18T22:44:00.003+02:00

We are often asked for the actual wording - here it is:

"The owner of a section is responsible for any excess payment in respect of his or her section payable in terms of a contract of insurance entered into by the body corporate: provided that owners may by special resolution determine that the body corporate is responsible for excess payments in respect of specified damage."

UPCOMING TRUSTEE WORKSHOPS

2009-02-16T13:16:00.004+02:00

Quite a few trustee workshops coming up. Next one at Watchprop in Cape Town hosted by Watchprop, see above, on 5 March 2009.
On 12 March 2009, Durban, Christine and Dave James of Small property Admin will be hosting a workshop on the new rule change for their clients. Christine can be contacted on 031 2021451.
On 24 March 2009, Hodson Properties will be hosting one in Cape Town (southern suburbs - venue to be advised) and on 2 April 2009, Southern Sectional Title will host same in Newlands, Cape Town. One planned for 21 February and hosted by NAMA has been cancelled due to lack of interest. We'll do another one in Johannesburg soon!

NEWS ANNOUNCEMENT FROM CIA - FRIDAY 30 JAN 2009

2009-01-31T22:04:00.004+02:00

This is an important notice affecting all CIA clients:

"CIA NO LONGER USES THE SERVICES OF A CALL CENTRE FOR GEYSER CLAIMS
It has always been our mandate to provide service excellence coupled with a hands-on approach particularly when it comes to claims handling and it is for this reason we have decided that we will no longer be using the services of a call centre. We have found over the past couple of years since the call centre has been involved that personal service and continuity has been lost. Frequent requests have been received from brokers, managing agents and policyholders wanting to use their own preferred service providers rather than new, unknown contractors appointed by the call centre.
Accordingly CIA will no longer make use of a Call Centre for geyser claims. This will be replaced by a new fast track in-house geyser claims system which you and your clients may begin using immediately. Policyholders should in future contact their broker for all geyser related claims. A claim form / questionnaire will be available on our website shortly.
The following limits apply with immediate effect and have been formulated in conjunction with Kwikot pricing structures and will be adjusted from time to time in line with Kwikot increases:
•· Geyser repairs R1,000
•· Geyser replacements:
•· Up to 100 Lt = R5,000
•· 150 Lt = R5,200
•· 200 Lt = R6,700
•· 250 Lt = R9,300
These limits are higher than the actual replacement cost, ensuring that our clients are not prejudiced.
As the unit owners will be responsible for the difference levied by the contractor and the policy limits, it is advisable to check the cost of the installation with the plumber before authorising replacement.
Remember, the premium is ultimately determined by the loss ratio of the complex, we therefore urge you to encourage your clients to have their geysers repaired rather than replaced as in the majority of cases we have found that it is only items such as thermostats and valves that need replacing and not the entire geyser. An added benefit for your client is the much lower repair excess compared with the replacement excess.
We are sure you will find the new fast track arrangement to be effective and a refreshing return to personal service."

More can be found on CIA's website http://www.cia.co.za/.

CIA is one of the three main underwriting managers supporting the sectional title industry in South Africa. CIA provides excellent service and we applaud them for taking drastic and decisive action when service levels are compromised. Well done!

Rule Change Workshop, Cape Town

2009-01-27T01:21:00.004+02:00

Addsure is hosting advice sessions for clients. Last week some of Cape Town's key managing agents attended a workshop on the important rule changes, particularly the impact of new rule 29.(4) and excesses. Here Jennifer Paddock of well known sectional title consulting practice, Paddocks provides up to date information on the latest changes to prescribed management rules. More information on the latest changes can be found in the December issue of Paddocks Press downloadable from www.paddocks.co.za.

Client Breakfast and Workshops - Bedfordview

2009-01-26T09:15:00.003+02:00

It was really great having Marina Constas join us for a client breakfast in Bedfordview last week - a great opportunity to network and share some thoughts. Thank you all who made it through the traffic to be there!
After the breakfast a client advice session followed in workshop format where we chatted about the latest rule changes particularly PMR 29.(4). Marina led discussion on most of the changes - the interaction and discussion was interesting - many thanks Marina! After lunch we did the same for local managing agents which was equally interactive and great to meet some some faces! Some more workshopping on insurance in a few weeks time.

Personal Finance Magazine - 1st Quarter 2009

2009-01-25T22:27:00.002+02:00

The very latest Personal Finance Magazine is very topical on the sectional title insurance front and touches on the latest changes and how this affects excesses. PMR 29.(4) now means trustees, managing agents and insurance advisors need to take a closer look at their policies, what better products may suit the body corporate and what to do about passing a special resolution for certain specified damage eg resulting damage to sections from storm, tempest, flood damage etc.

Next PMR 29.(4) Workshop - Durban, 13 March 2009. (hosted by National Association of Managing Agents) www.namasa.co.za

Personal Finance Magazine

2009-01-13T23:24:00.005+02:00

Personal Finance Magazine is running a series of articles on sectional title matters. Part Five is available still and Part Six should be on the shelves within the next couple of weeks!

Part Five (In 4th Quarter 2008 edition) discusses "Customised cover for you" ie the various sectional title insurance products available and why we should make use of them. besides the various combined policies, it also touches on profesisonal indmenity and fidelity cover.

Previous articles can be obtained. An example of a previous article on "Wear and Tear versus Sudden Loss" can be read by clicking on the link to Personal Finance below:

http://www.persfin.co.za/index.php?fSectionId=&fArticleId=4531470

New rule 29(4) - what now?

2009-01-07T23:18:00.000+02:00

Since receiving the good news that the excess issue is now included in the rules, new Prescribed Management Rule 29(4) to be precise, much has already been said - both positive and negative. The interpretation and legal application of certain aspects is being debated such as whether or not a special resolution allows a body corporate to generally apply excesses one way or the other e.g. whether or not a special resolution can set the stage that the body corporate always pays for say excesses pertaining to storm damage to the roof. We look forward to more discussion, debate and eventual consensus so that the professional managing agents can properly advise their body corporate clients here. However, this is the least of my concerns for the moment.

Of concern to me is the lack of priority insurance renewal documentation receives. With the new sub-rule 29(4) inclusion, the impact on insurance advice and the way trustees apply their minds to insurance needs to be taken very seriously. Perhaps most of a managing agent’s buildings have standard excesses, however, noticeably over the past 12 months we have seen harsher excesses being implemented even where buildings have low or zero claims. Accidental damage, impact damage more often than not is now 10% of claim, minimum R2,500, lightning R2,000. In higher claim situations we are seeing policies renew with R2,500 to R10,000 excesses being applied. So what?

Well, the insurance environment we find ourselves in is one where, in my opinion, fierce competition between the three specialist players has resulted in very low premium rates, probably a third of where they should be. This has been great for the property owner ultimately but we now find the insurers needing to adjust premium, excess and terms so that premiums meet claims at sustainable levels. Simply put, claims are too high for the insurers at the moment and claims ratios of 80% and above (claims 80% of premiums) cannot persist. Hence we see a trend towards higher excesses and higher rates. Rates can be discounted by voluntarily accepting higher excess. This is where the insurance advisor (insurance broker), managing agent and trustees need to take extra care. The new rule 29(4) is very clear, unless a special resolution is passed to the contrary, insurance excess applicable to storm damage to a pensioner’s apartment say R5,000, will be for that owner’s account. Most likely, the body corporate would previously have picked up the excess for storm damage. Can you just hear owners squealing about this……..wait until it starts to bite!

How should a managing agent plan to deal with this?
Actually, fairly simply – by getting the insurance broker to be an insurance advisor rather than the insurer’s messenger. Make sure that the body corporate is receiving fit and proper advice ongoing, preferably in writing especially on renewal. Gone are the days where a simple letter enclosing an insurer’s renewal schedule is acceptable. The trustees need to be presented with, annually, a letter of advice from the broker explaining why the existing policy should be renewed compared to at least one alternative, preferably 2 comparisons. It is at this point that excesses are considered and their impact on the owners given the dynamics of the complex. We feel that over the next year and going forward, harsh excesses applied are going to need to be explained – I don’t feel it is going to be fair to blame the rule or the “horrible insurance company” where actually, lack of input from the insurance advisor, lack of care and professional input from the managing agent and ignorance on the part of the trustees are most likely going to be the cause of owners paying unnecessary high excesses and premiums going forward. My prediction is that although PMR 29(4) is a much fairer rule, more is going to be required of the managing agent is dealing with insurance on renewal. However, the managing agent can lift this burden by insisting on certain basics from brokers and putting some routine procedures in place. Get the broker to present the renewal invitation together with 2 alternative quotes and written advice at least a month ahead of renewal. Take a good look at the excesses and see if these can be negotiated and what excess buy-back options are available and at what cost.

During the first quarter of 2009, Addsure will be holding various workshops some specifically for clients and others generally for managing agents in Cape Town, Durban and Johannesburg focusing on this important area. Keep an eye on www.addsure.co.za, www.pima.co.za/workshops and www.addsure.blogspot.com for more news and workshops near you.

During 2009 Addsure will also be presenting a set of 9 one hour insurance modules in workshop format at various centres around the country. The above websites will provide dates and venues.

Module 1
Excesses, Premium and Rate
Module 2
Claims and claims procedure
Module 3
Determining Replacement Value
Module 4
Schedule of Replacement Values
Module 5
Fidelity and Professional Indemnity
Module 6
What we need to insure against
Module 7
Renewal time – Advice and comparison
Module 8
The AGM and Insurance
Module 9
Understanding Policy documentation

Insurance remains an important responsibility of trustees however, the rule changes and changing environment means more input required from the professional insurance advisor/broker and the professional managing agent. Let’s get this right early in 2009!

2009 Workshops

2009-01-06T00:51:00.003+02:00

We kick off the year with some workshops for clients ie advice sessions with some umph!

New legislation, particularly PMR 29(4) and excesses makes for some very interesting discussion. What if managing agents and/or trustees could have obtained a better excess deal elsewhere - oops! Sessions in Cape Town, Johannesburg and Durban soon - see http://www.pima.co.za/workshops

The Sectional Title Insurance Guide

2008-12-29T00:39:00.003+02:00

The Sectional Title Insurance Guide was first published in 2005. This booklet was the result of notes and handouts collated from sectional title insurance workshops presented by Addsure over the years. The idea was to formally yet in layman's terms, present relative parts of the Sectional Titles Act and Prescribed Rules regarding insurance and set out step by step a guideline in dealing with this important aspect of trusteeship. The later 2008 edition now includes more up to date dealing with schedules of replacement cost etc. Copies can be obtained from Addsure's office at a cost of R45 per booklet or one per trustee client of Addsure. Another "must have" resource for trustees.

This booklet will also form part of the workshop material handed to delegates attending workshops In Cape town, Durban and Johannesburg early 2009 - book your place early - see www.pima.co.za/workshops

SCHEDULE OF REPLACEMENT COST

2008-12-14T22:24:00.006+02:00

SCHEDULE OF REPLACEMENT VALUES - GETTING IT RIGHT!

(content supplied by Mike Addison, Addsure - Sectional Title Insurance Guide, 2008 edition)

Equipped with the valuation, the trustees should now be able to determine the various elements and account for additions such as covered balconies, swimming pools, wendy houses etc. It is also important to be able to split these and other common areas from individual units.

Before every annual general meeting, the Trustees must ensure that insurance
schedules are prepared. The schedules should reflect their estimated replacement value of the buildings and the improvements to the common property, such as walls, swimming pools etc. The replacement value of each unit should be reflected.

Any owner, who feels that their unit is under-insured, may at any time and by
arrangement with the trustees, have the replacement value in respect of his or her
unit increased. In particular, owners who have themselves made improvements or additions should increase their sums insured. Any additional premium charged for this will usually be for those owners accounts.

I often see this point debated – who should do the schedule?

The insurance company will provide an insurance schedule, based on the sum insured. If the insurance company is provided with the participation quota (pq), then an insurance schedule will accordingly be set out. This insurance schedule is then often “adopted” as the schedule of replacement costs, however, this method has some serious flaws.

Actually per , PMR 29.(1)(c) reads

“ Before every annual general meeting, the trustees shall cause to be prepared schedules reflecting their estimate of -
(i) the replacement value of the buildings and all improvements to the common property; and
(ii) the replacement value of each unit (excluding the owner’s interest in the land), the aggregate of such values of all units being equal to the value referred to in subparagraph (i) above,
and such schedules shall be laid before the annual general meeting for consideration and approval in terms of rule 56.”

The trustees should see to it that a schedule of replacement costs is calculated by working from the valuation schedule. (It is the trustee’s responsibility to see to that this is done as stated above; but this can be delegated to the managing agent who usually prepares this schedule. An experienced insurance advisor can also be of great assistance with this.

This schedule should reflect the following, in order to be useful and understood by owners:
1. It should clearly and simply set out the replacement cost of the buildings

2. Indicate how these were determined e.g. from valuation dated April 2008
3. Reflect the common area and it’s value
4. Show in columns, the owner’s section value & common property value (separate)

5. Show the unit value as a ttal of section + undivided share of common property

6. A column for additions or additional value that an owner may wish to add.

SEE EXAMPLE BODY CORPORATE - SCHEDULE OF REPLACEMENT VALUES IN THE PICTURE A ABOVE

Now one can see the danger here if this example insurance policy schedule was simply“adopted”. Say it was simply accepted that the insurance company’s schedule of dividing the total sums by the respective pqs was accepted , then for example:

R10,539,844

Flat Section 2 x PQ (0.0940) = R990,745
Garage Section 10 x PQ (0.0169) = R178,123

This compares somewhat differently to our suggested improved method of splitting columns:

Flat Section 2 is R871,416 + common area portion R197,190 = R1,068,606
Garage Section 10 is R53,089 + common area portion R35,494 = R1,068,606

So, our suggested method works better for 2 main reasons

1) An owner has a better idea of the replacement value of his or her flat without the costs of lifts, common areas added
2) Lower cost sections such as garages are not over insured and flats not underinsured – more accurately laid out

I have seen this difference far greater where, by stripping away the common areas and lifts, the unit sums insured were actually half that stated. Also, if one exaggerates the difference between cost of garages vs. cost of flats, the difference i.e. the underinsurance / over insurance ratio can be huge.

This does not mean that you as trustee MUST do it this way – this just illustrates how important it is to show the owners how values are determined, so that there can be no problems at claim stage.

Owners need to understand the schedule and we feel that trustees and managing agents need to present the schedule to owners in an informative yet simple way. Owners need to account for their additional expensive fitted kitchens, undertile heating, air-conditioning units, expensive flooring etc. when considering their section’s sum insured.

This leads onto PMR 56 (b) where it is very clear that it is compulsory that the schedule of replacement costs be transacted at an annual general meeting (step 4)

“The following business shall be transacted at an annual general meeting:
…………………………..(b) “the approval with or without amendment of –
(i) the schedules of replacement values referred to in rule 29 (1) (c); and…..”

I will go into a little more detail on how to deal with this at the actual meeting further on.

The schedule of replacement cost should reflect similar figures to that shown on the actual policy of insurance. After valuation, provided not lower than the last agreed figures, the trustees should instruct the insurers to amend the cover accordingly. The body corporate should be dealing with an authorized insurance broker / advisor (licenced with the Financial Services Board (FSB)) who specializes in this particular field of insurance. The broker/advisor should provide the body corporate with an annual renewal invitation plus quotes from alternative appropriate insurers / product providers for consideration. The insurance company / product provider should also be one with a sectional title friendly policy. This should be done in line with the valuation although, in practice not always achieved!

At the A.G.M. itself, it is important to present the insurance schedules and related information clearly and then, just as importantly, ensuring that what was said here is accurately minuted. I believe that it is here, at this stage of the A.G.M., that what is said and minuted, is what could make a huge difference whether trustees are being negligent or not; and whether owners were properly informed. At claim stage when what was minuted at the AGM could be critical!

WORKSHOPS FIRST QUARTER 2009

2008-12-14T17:25:00.000+02:00

See www.pima.co.za/workshops for workshops and presentations being held in Johannesburg, Durban and Cape Town during first quarter 2009.

Addsure offers workshops and advice on sectional title insurance in modular form for clients, managing agents, trustees, owners and interested parties. Call 021 5515069 to book your place or email info@addsure.co.za for more information, content, booking form.

2008-12-14T17:15:00.001+02:00