Quick answer: Sectional title levies usually contribute to shared body corporate costs such as building insurance premiums, common property maintenance, managing agent fees, security, cleaning, garden services, reserve fund contributions and other approved scheme expenses. The exact levy use depends on the scheme budget, AGM decisions and body corporate records.
Common costs funded by levies
Levies are used to fund the body corporate’s approved budget. Trustees should explain the main categories clearly so owners understand why levies are needed.
- Building insurance premiums
- Common property maintenance and repairs
- Managing agent fees and administration
- Security, cleaning and garden services
- Reserve fund contributions and long-term maintenance planning
Insurance and levies
Insurance premiums are often a major body corporate expense. If insurance costs rise after claims, valuation changes or excess changes, levies may be affected.
- Trustees should review insurance before renewal
- Large excesses can affect owner expectations
- Replacement valuations can increase sums insured
- Claims history may affect premiums
What levies usually do not cover
Levies do not automatically cover every owner cost. Owners should distinguish between body corporate costs and personal ownership costs.
- Personal household contents insurance
- Private bond or home loan payments
- Owner-specific improvements unless approved by the scheme
- Individual municipal usage where separately metered
Why the 10-year maintenance plan matters
The maintenance plan helps trustees plan for future common property repairs. Insurance is not a substitute for maintenance budgeting.
- Roof waterproofing and structural maintenance
- Painting and common area repairs
- Reserve fund planning
- Reducing avoidable claims and disputes
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, sectional title claims support, renewal checks and practical communication with owners.
Lowensvlei Insurance Brokers assists body corporates, trustees and managing agents across the Western Cape with body corporate insurance reviews, sectional title claims support, renewal checks and practical communication with owners.