Page 28 - Sectional Title Policy Wording

Mortgagee
The interest of any mortgagee(s) in the buildings, improvements, landlord’s fixtures and fittings and rent insured only will not be prejudiced by:
1. any act or neglect of the Body Corporate or any of the owners of units as defined in the Act, or
2. any misrepresentation or non-disclosure of any of the owners of units at the time when the insurance is effected or renewed or during the currency thereof, or
3. the alienation of the property, or
4. the occupation thereof for purposes more hazardous than permitted by the policy;
PROVIDED THAT:
1. such act, neglect, misrepresentation, non-disclosure, alienation or occupation will have been effected without the knowledge and privy of the mortgagee(s), and
2. the mortgagee(s) will notify Hollard of the happening or existence of such act, neglect, misrepresentation, non- disclosure, alienation or occupation as soon as same comes to his or her knowledge, and
3. the mortgagee(s) will on reasonable demand, pay the additional charge for any increase of hazard thereby created according to the established scale of rates, for the time such increased hazard may be, or have been, assumed by Hollard during the continuance of the Insurance, and
4. any compensation payable in terms of this section will be payable direct to the mortgagee(s) of the particular unit in this section or the aggregate of the amounts due by the unit owner to the mortgagee under the mortgage bonds whichever is less.
PROVIDED FURTHER THAT:
1. all and any amounts becoming payable by Hollard under this section as a result of damage to the buildings, improvements or landlord’s fixtures and fittings will unless otherwise resolved or ordered in terms of Section 36 of the Act, be wholly applied to the reinstatement of such damage. If it is resolved or ordered in terms of Section 36 of the Act that such damage or destruction should not be reinstated the proceeds of any claim applicable to a unit will be made in the first place to the mortgagee(s) of the particular unit up to the value allocated to the particular unit in this section or the aggregate of the amounts due by the unit owner to the mortgagee(s) under their mortgage bonds whichever is less,
2. as regards this clause the specific condition of average will apply to the individual units (excluding the owner’s interest in the land) and not to the property as a whole.
Motors and pumping equipment
Hollard will pay, replace or repair for loss of or damage to fixed filtration plant, water-pumping machinery, electronic gate motors, garage door machinery or burglar alarm systems by an insured peril;
PROVIDED THAT:
1. Hollard shall not be liable to pay more than R10 000 (ten thousand rand) any one event or R50 000 (fifty thousand rand) during any one insurance period;
2. You shall be responsible for the first 10% (ten percent) of the claim with a minimum of R500 (five hundred rand) for each claim;
3. Hollard shall not be liable to compensate for:
3.1 automatic pool cleaners;
3.2 loss or damage as a result of wear and tear;
3.3 wear and tear;
3.4 gradual deterioration;
3.5 inherent vice and latent defects;
3.6 any loss or damage recoverable under warranty.
Buildings
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Sectional Title Insurance Policy Wording – Version 4 2023