The destruction to property and the violence by looters/rioters during the month has been devastating! However, it has been remarkable to see communities coming together to take care of one another. If there is any silver lining in this tragedy it is communities uniting.
From a property perspective it has highlighted the importance of having full and adequate insurance of one’s property. Riot cover is not included in a normal business, building or household policy but is additional cover that falls under a government administered and controlled risk policy, known as SASRIA.
Unfortunately, with the number of properties that have been damaged during this time, the reconstruction of many of these buildings and getting them back to business is not going to be a quick process. Insurance assessors’, quantity surveyors, engineers, architects, contractors, and various service providers will be under immense pressure to perform. In addition, certain materials are going to be in short supply which will also aggravate the situation.
It is imperative that buildings are maintained properly, and all building by-laws adhered to. Failure to maintain a property places the owners and occupiers of the property at an additional risk because insurance cover could be terminated/cancelled or where there is insurance, a claim rejected if a property is not properly maintained e.g. If the fire equipment is not serviced on an annually basis and therefore not working as it should.
It is equally important for the building to be constructed and used in accordance with the bylaws, as if the building is not used for the purpose intended or not disclosed to the insurer at the time of taking up the insurance cover, this could result in the rejection of a claim.
Both the above situations potentially place owners at a considerable risk of losing their investment and in such circumstances, the owner would still need to pay off any mortgage bond that he or she has on the property.
To ensure that the scheme is able to deal with maintenance issues, the financial resources and budgeting has to be adequate with appropriate reserves that will meet the needs of planned and future maintenance.
It is therefore vital for all buildings to be properly managed by a professional managing agent with a proven track record, who identifies what is required and is able to keep their clients updated on the various changes in legislation as well as assist with financial planning/budgets etc.
Wakefields Property Management is an owner run and managed company with the Wakefield family protecting owner’s investments since 1939. With the knowledge acquired over the past 8 decades and our commitment to continually keep abreast of changes, coupled with our large footprint across KZN and the hundreds of well-maintained properties under our portfolio, makes us the perfect choice when selecting a property management company.
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