Quick answer: A rejected sectional title insurance claim is not the end of the process, but trustees and owners need to respond carefully. The first step is to understand the reason for the rejection: policy exclusion, maintenance issue, late notification, insufficient proof, incorrect cause of damage, or a misunderstanding about what the body corporate policy covers.
Start with the rejection reason
- Ask for the insurer’s rejection reason in writing.
- Check the policy wording, schedule, endorsements and excess clauses.
- Confirm whether the claim was rejected fully or only partly limited.
- Check whether the damage was sudden and accidental or linked to maintenance, wear and tear or gradual deterioration.
Documents to gather
- Photos and videos of the damage before repairs where possible.
- Contractor report explaining the likely cause of damage.
- Quotes, invoices and proof of emergency work.
- Communication with the managing agent, trustees, broker, assessor and insurer.
- Maintenance records if the dispute relates to roofs, waterproofing, pipes, damp or common property.
What trustees should check
- Whether the damage relates to a section, common property or exclusive use area.
- Whether the owner has a separate contents or personal policy.
- Whether there are special policy conditions about maintenance, late notification or contractor appointment.
- Whether the claim should be escalated through the broker or insurer complaints process.
When to speak to a broker
- If the cause of damage is disputed.
- If the assessor report and contractor report do not agree.
- If owners are unsure whether the body corporate policy or their own policy should respond.
- If the claim affects multiple units or common property.
Need help reviewing the insurance position?
Lowensvlei Insurance Brokers assists body corporates, trustees and managing agents across the Western Cape with body corporate insurance reviews, renewal checks, water damage claims, public liability, fidelity cover and trustee insurance support. Request an insurance review.
Lowensvlei Insurance Brokers assists body corporates, trustees and managing agents across the Western Cape with body corporate insurance reviews, renewal checks, water damage claims, public liability, fidelity cover and trustee insurance support. Request an insurance review.
This guide is general information for trustees, owners and managing agents. It is not legal advice. Always check the scheme rules, policy wording and current legislation before making final decisions.