So why is your bondholder (usually a bank) interested in the insurance details? If a property has been bonded, it means that the bank’s security for the loan it made to the owner lies with the property and the buildings thereon. Therefore, in many instances, it is a bond requirement that the property must at all times be sufficiently insured to protect the security of the bondholder.
In sectional title schemes, it is the body corporate that is responsible to ensure that the buildings in the scheme are sufficiently insured. Owners of units in the scheme will note that the insurance premium is included in their monthly levy contribution.
Household insurance, or contents insurance, on the other hand, covers the household goods that are not covered by homeowners’ insurance. This includes furniture, electronics, clothing and even valuables such as art and jewellery. Due to the myriad of contents in a home, household insurance usually requires that a detailed inventory and value of items to be included in the cover, is provided. Certain high value items may have to be itemised and insured separately. This type of insurance is not a legal requirement, but highly recommended to tenants and owners alike.
Contact STBB should you have any enquiries or require assistance with a legal matter.
021 673 4700