G
guideline for bodies corporate
body corporate insurance
According to the Sectional Title Act, it is the fiduciary duty of the trustees to manage the insurance of their body corporate and ensure that it is sufficiently covered, bearing in mind that claims -‐ even if only for partial loss or damage -‐ are subject to averaging by the insurer if a body corporate is found to be underinsured. Therefore, the sum insured must make provision for all costs associated with reconstruction, including demolition, rubble removal, professional services, building rates and additional building services, as well as inflation of costs since policy inception, all of which can only be accurately determined by means of a professional Replacement Cost Valuation.
what is the cost?
Our fee is based on the number of registered sections in a sectional title scheme. Please click here for a quotation.
what do you get for your money?
Mirfin's replacement cost valuation comprises a detailed property description with potential insurance risks and maintenance issues pointed out, an itemised calculation of replacement cost for the common property, a detailed schedule of replacement values for the owned sections and photographs of the complex and its improvements.
what are the benefits of a professional valuation?
• • • • •
having adequate insurance coverage and not overpaying on premiums peace of mind that claims will not be averaged by insurers avoid time-‐consuming and costly disputes with the insurer delegate the responsibility for recommending the sum insured at an affordable fee keeping the body corporate and the trustees out of financial harm's way
what is the procedure?
On receipt of your valuation instructions and payment, we will physically measure up and take inventory of the common property and its improvements, taking into consideration the geographical and topographical conditions. A standard sectional title valuation determines the replacement value of all common property and owned units as per the latest approved sectional title plans obtained from the deeds office and in accordance with the quality of finishes and workmanship observed by the valuer on site. Therefore, access to individual units is not required normally and it is the responsibility of each unit owner to report to the trustees the desired sum insured for any additions or upgrades made to their units. Should any owners require our assistance in determining the replacement value of their additions or upgrades, we will be happy to inspect their units individually at an additional cost for the owners' account. (Please note that requests for individual inspections must be communicated to us together with the main valuation request and it must be ensured that our valuer will have access to such units on the date of inspection.)
how long does it take?
The typical turn-‐around time for the valuation report is 4 -‐ 7 business days from the date of inspection.
who we are
Mirfin Valuation Services (Pty) Ltd is South Africa's leading independent provider of replacement cost valuations, specialising in sectional title properties and recognised by all major insurers.
what is the difference between replacement cost and market value?
Replacement Cost is the actual cost to replace a structure at its pre-‐loss condition, including the cost of demolition, rubble removal, architectural services, land surveyors and additional building services. Market Value is defined as the price at which a property should exchange hands between a willing seller and a willing buyer in an arm’s-‐length transaction after proper marketing.
order today at www.mirfin.co.za e-‐mail
[email protected] call 0861 MIRFIN (0861 647 346)
November 2015
Mirfin Valuation Services (Pty) Ltd w Reg. No. 12/117580/07 w www.mirfin.co.za
