Buildings Insurance Guide

Buildings insurance for sectional title properties

Written by Lerato Molefe Personal Insurance Writer Reviewed by Nomsa Dlamini RE5 qualified · 12 years in short-term insurance Updated 28 July 2026 Our editorial standards →

Do I need my own buildings insurance for a sectional title unit?

Usually not. In a sectional title scheme - a flat, townhouse or complex - the body corporate is legally required to insure all the buildings and common property to their full replacement value, and that premium is funded through your monthly levy. You typically only need to insure your own contents and any improvements you have added, and you may want cover for your share of the excess. A full-title home in an estate is different: there you need your own buildings policy.

Key takeaways

In a sectional title scheme, the body corporate must insure the buildings by law.
Your monthly levy funds that buildings cover, so you rarely need a separate structure policy.
You still need contents cover and should insure improvements you have added yourself.
Confirm the scheme's sum insured is a current replacement valuation, not out of date.
A full-title home in an estate is not covered by the HOA - you need your own buildings policy.

How sectional title cover works

Under the Sectional Titles Schemes Management Act, the body corporate must take out insurance on all the buildings in the scheme for their full replacement value, and have that value assessed periodically. This single master policy covers every unit and the common property - the structure, roof, external walls, and shared areas like passages, lifts and boundary walls. As an owner you are a member of the body corporate, so this cover already protects your unit's structure without you buying a separate buildings policy.

What your levy covers

Your monthly levy is the mechanism that funds the scheme's insurance, along with maintenance of common property and the reserve fund. In effect, a portion of every levy payment is your share of the buildings premium. Because the trustees arrange one policy for the whole scheme, individual owners cannot opt out of it or shop for their own structure cover - the building is insured collectively. What you can and should check is that the scheme's cover is adequate and current.

What you still need to insure yourself

The body corporate policy stops at the standard building. You remain responsible for:

Contents - your furniture, appliances and belongings need your own contents policy
Improvements and upgrades you have made to your unit that go beyond the original build, which the master policy may not fully reflect
The excess - schemes often recover the claim excess from the owner who claims, so consider cover for it

Full title in an estate is different

Do not confuse a sectional title complex with a full-title home in a security estate or homeowners' association. In a full-title arrangement you own the house and the land it stands on, and the HOA does not insure your structure - it manages shared amenities and security only. That means you need your own buildings insurance, exactly as you would for a freestanding house, and if you have a bond the bank will require it.

Checks to run as an owner

Before assuming you are fully covered, ask the trustees or managing agent for the scheme's insurance schedule. Confirm the total sum insured reflects a recent replacement valuation of all buildings - under-insurance at scheme level triggers the same average clause and can leave every owner short after a big claim. Check who bears the excess, whether your improvements are included, and then arrange your own contents cover to fill the gap the master policy leaves.

Frequently asked questions

Do I need buildings insurance in a sectional title complex?

Generally no. The body corporate is legally required to insure all the buildings to replacement value, funded through your levy. You usually only need your own contents cover, plus cover for improvements you have added and possibly the excess.

What does the body corporate insurance cover?

It covers the structure of every unit and the common property - roofs, external walls, shared passages, lifts and boundary walls - for their full replacement value. It does not cover owners' movable contents or, in many cases, improvements individual owners have made.

Does my levy include buildings insurance?

Yes. Part of your monthly levy funds the scheme's master buildings insurance policy, alongside common-property maintenance and the reserve fund. Owners cannot opt out of this cover or arrange their own structure policy for the unit.

Do I need buildings insurance in a security estate?

If it is a full-title home, yes. The homeowners' association manages shared amenities and security but does not insure your house, so you need your own buildings policy - and the bank will require it if you have a bond. Only sectional title schemes insure the buildings collectively.

Who pays the excess on a sectional title claim?

It is common for the body corporate to recover the claim excess from the owner whose unit or section gave rise to the claim. Check your scheme's rules, and consider cover for the excess so an unexpected claim does not leave you out of pocket.

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