The Achilles heel of the sectional title industry over the past 40 years, particularly in the middle and lower end of the market, has been the failure of members to pay their levies timeously on a consistent basis. Bodies corporate whose members default on their levy payments soon experience cash-flow difficulties. Payments for Municipal services are delayed and creditors remain unpaid. Furthermore property maintenance is invariably neglected, which ultimately leads to a fall in property values. A downward spiral is created which is extremely difficult to reverse.
There have been many amendments to the Sectional Title Act, since the advent of the sectional-title industry in order to improve its functionality. However no innovation has been more significant that the introduction of an insurance policy specifically designed to protect a body corporate’s cash-flow, which is its most important asset. The levy guarantee was devised and launched by Stilus Underwriting Managers in 2010 and has proved to be the most successful. ONE, with its advanced web-based administration system allows for seamless delivery of insurance products and the prompt payment of claims
ONE has revised and improved its current material damage sectional-title policies to give greater cover to its clients.ONE, where insurance is done right, includes a levy guarantee as a value-added product in all material damage policies. This benefit enhances ONE’s material damage policies, giving them an edge on their competitors.
ONE anticipates that its updated material damage policy will become a leader in the sectional-title industry filling a niche in the market place with its unique product.