|Sectional Title Building Cost Guideline 2013|
|In one of our recent newsletters we dealt with the effects of your client’s underinsurance on you as the broker. We highlighted the importance and benefit of determining the actual replacement value of the building by means of professional valuators. To view this newsletter click here.
In Sectional Title complexes the average clause applies to individual units and not the entire complex and it is therefore vitally important to ensure that the complex is insured for the correct replacement value. Complexes often have tight budget constraints and are therefore not able to employ the services of professional valuators.
The following Building Cost Guideline has been compiled as a general guideline to assist the trustees in checking whether their sum insured reflects the correct replacement value in terms of the requirements of the Act.
It also highlights all the additional costs which must be taken into consideration when calculating the replacement value of a complex.
Please note that this communiqué is intended to provide a general guideline and we reiterate that it is in the best interests of the Body Corporate to obtain a professional valuation, which should be updated at least every three years.
Details of independent valuators may be obtained from CIA on request
Download Building Cost Guideline
The information contained in this newsletter must be seen as a set of guidelines and should not be regarded or relied upon as professional advice. Therefore, CIA will not accept any responsibility towards any person relying upon the contents hereof nor accept any liability whatsoever for the accuracy of information supplied by a third party or the consequences of relying upon it.
Web site: http://www.cia.co.za/downloads.htm